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With shoppers spending money in the rise prices in the initial quarter of the year and growing popularity of online shopping continues to expand across all age groups Merchants are faced with increasing opportunities and competition for the money of their customers. They must come up with new strategies to cater to the requirements of their clients and give customers more reason to buy from your brand or site that you've created. The most effective place to start is the check-out process. It is crucial to find ways to streamline the process of making the purchase, and also provide the choice of payment to customers to increase the satisfaction of customers.
The latest trend to gain in the popularity of online shopping is"By Pay Later" or the "Buy Now, Pay Later" (BNPL) alternative while at the checkout. BNPL is a new method of payment that allows customers to break up the cost of their purchase into affordable payments that are spread over timesometimes over a few weeks, and in some circumstances, over a longer duration.
Pay later, buy now is on the rise
Many customers make use of the payment-over-time alternatives when they're offered. In 2023, online merchants witnessed a substantial increase in the number of purchases that were processed using BNPL and the number of transactions up 42.5 percent from the prior year. In the end, BNPL placed about $16.6 billion of its revenue in a book for merchants in the closing months of 2023 and this pattern Adobe expects to continue through 2024.
The company estimates that 93.3 million customers are expected to use BNPL in 2024 according to EMarketer as well as American Banker reported that the BNPL market in the US could reach as high as $8.3 billion in 2028. BNPL is also being used extensively by retailers that are online, for example Amazon.com and is also increasing its growth as well as increasing its accessibility to people who buy online.
This is what makes BNPL an alternative that merchants should be conscious of when fighting for a place in the constantly growing marketplace online.
Buy now, and then make the payment in the future: things to consider
Incorporating BNPL alternatives when you check out earlier versus later offers businesses the best opportunity to acquire new customers, as well as build a lasting relationship.
If a merchant doesn't offer a BNPL option at check out, it could be a perfect opportunity to add one to the menu. For those who do by displaying the BNPL choice on their sites specifically at checkout or announcing the availability of the option via advertising can assist in establishing their brand and improve the experience of customers.
The more well-known the BNPL option is displayed on the site of a store and the quicker they can promote the service through emails and through social media and social media, the more likely they are that people will be intrigued by learning more and help bring buyers to their website for purchase.
BNPL allows merchants to expand the reach of customers who are planning to buy things in the near term and want to regulate the flow of cash that is not backed by credit. In addition, by breaking down the cost of a product into, for example, four installments which are interest-free every two weeks, buyers can meet the requirements of their customers in a short time. Certain BNPL firms, such as Affirm and Affirm, can offer longer terms of up or three years on carts with large dimensions or premium products.
Incorporating the new payment type to the backend of an online store could seem overwhelming for smaller-scale merchants who are in the midst of a rush. There are alternatives that are easy and simple software that can simplify the whole process for the retailer. In this case, it's common to utilize already-designed eCommerce integrations, like for instance that of the AffirmPayments Extension that allows simple integration of BNPL solutions into the checkout processes that they already have.
Benefits of offering purchase right now and later pay for your Woo store
What advantages does the BNPL integration provide? One of the main benefits is that the integration makes it easier to purchase to accommodate the ever-growing number of consumers who prefer to make their payments over a long period of the time. In addition, ensuring that shoppers are at your location and guiding them to checkout is vital, especially for those who are younger and are used to purchasing online. According to the National Retail Federation reports that over fifty percent (46 percentage) of Gen Z respondents consider a ease of checkout important for their satisfaction with shopping.
One of the main elements to be considered when it comes to integration is the user experience for customers. It is essential that the customer is able to view the payment options as well as complete the process of approval without having to visit another website. Through a pre-built integration, retailers are able to make the process as simple and effortless as they can for the shopper, so they're making sales without a hit.
An efficient checkout experience can assist in reducing abandonment of carts. An earlier Baymard Institute metastudy of 49 research reports revealed that cart abandonment rates are still at around 70 although it isn't much different in the past decade. The most common reason for customers to drop carts is a checkout process that took a long time or was difficult (22 percent of times) and also the site was not offering enough choices regarding payment options (responsible in 13% percent of all carts which were abandoned). Through the use of an effective BNPL solution, merchants will be able to deal with both issues of customers with a single click.
Which one is the best purchase for today? The option to pay over time or per month
Selecting the BNPL firm that is most compatible with your needs as a business as well as the requirements of your customers is vital in determining the best match. Affirm, for instance, Affirm provides custom payment choices for retailers that span from short-term to longer-term, as well as the possibility of a no percent annual percentage. When payments are conformity with the demands of consumers as well as the typical price, retail stores can raise their affordability to shoppers and potentially gain a competitive edge over rivals.
One of the most unique functions that is offered by Affirm is the Adaptive Checkout technology, which offers the most effective options to settle your client's invoice based on the products' price and total amount in the cart. Through personalizing the name of the game, Affirm lets you change the time and rate of interest for every purchase by providing several suitable choices for paying over time to your customers, all within an intuitive user interface.
What can you do to let customers that you currently have in addition to people who may purchase from you be aware of the BNPL option prior to making a purchase? Based on the type of market you target, it's possible to promote this offer via numerous social media platforms. Retail Dive reveals that 85% of customers buying purchases are influenced through social media. Therefore, marketing the availability of BNPL on social media platforms may give you a competitive edge. In case you're trying to get your message out to Gen Z, know that 45 percent of those who were surveyed have mentioned TikTok as well as Instagram as their most popular social media platforms due to the way they influence the purchase decisions they make.
Since summer is typically the busiest season for businesses, there's a chance to help companies focus their efforts on getting BNPL online on their site, before it is filled. Back to School rush signals that this is the most busy time prior to the Christmas season. It allows schools to make thoughtful decisions concerning sellers as well as removing technical issues, and build up an effective marketing campaign announcing the introduction of BNPL as a payment method to be used at checkout.
The presence of a BNPL option when you check out and also having it accessible via social media could alter how merchants attempt to earn more cash online and beat out the competitors.
Do you want to add an option for flexible payments to your online checkout? Apply to Affirm in order to start using your Affirm Extension of Payments option in order to allow the possibility of paying over time in your method of making payments.
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Payment options offered through Affirm are subject to an assessment of credit and may not be accessible to all places, but they're offered by the lending partners listed below: affirm.com/lenders.
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