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With consumer spending rising of the initial quarter of the year and the rise of internet-based shopping continues to increase in every age group, merchants face both more opportunities and competition to the consumer's dollar. This means that they must find new methods to meet the desires of their customers and give them more reason to come back to your website. A great place to start is with the checkout processfinding opportunities to streamline this important final step in the sales process while also offering the option of payment for customers, to improve their customers' experience.
One of the trends that is rapidly growing in the popularity of online shopping include the "Buy Now or pay Later" (BNPL) choice at the time of checkout. BNPL is a method of payment which allows customers to divide the amount of their purchase into low-cost installments that are spread over a period of time, sometimes for several weeks, and sometimes spread over several months.
Buy now, pay later is becoming more well-known.
There are many consumers who use pay-over time services anytime they're available. The year 2023 saw that online merchants experience a massive increase in purchases made through BNPL, with volumes growing by 42.5% from the year before. In the end, BNPL added around $16.6 billion on merchant books over the course of the last two months of 2023, and this pattern Adobe anticipates will last until 2024.
Roughly 93.3 million people are expected to use BNPL in 2024, according to EMarketer, and American Banker reported that the BNPL market in the US could reach more than $8.3 billion by 2028. BNPL is being utilized more and more by online retailers, such as Amazon.com and Amazon.com, which are speeding up the growth of the industry and making it more accessible to those who purchase on the internet.
This makes BNPL an option merchants must consider when competing in an ever-growing online marketplace.
Offer buy now and to be paid in the future: A few aspects to be considered
The incorporation of BNPL options for checking out prior to or later offers merchants more opportunity to capture new customers as well as build a long-lasting relationship.
If a retailer doesn't provide a BNPL option when they checkout, this could be an ideal time to add one into the mix. If they do provide it by placing this BNPL option prominently displayed on their site, especially during checkout, or promoting that they offer the service via advertisements can ensure that their brand stands out and increase customers' experience when shopping clients.
The more prominent the BNPL option appears on a merchant's site and the quicker they can promote the feature via emails and on social networks and the more likely that customers would be interested in learning about it, which could aid the retailer in bringing customers to their site to make the sale.
BNPL can help merchants expand the appeal of their products to those who are looking to buy items soon, but wish to manage their cash flow without credit. In the event of dividing the cost of a purchase into four equal installments which are interest-free every two weeks, customers have the ability to buy what they desire without the hassle of waiting. Certain BNPL services, like Affirm and Affirm, have extended time plans that range from between a few months and up to 3 years for carts that are large and expensive products.
Although adding another payment option to the backend of an ecommerce site may be a daunting task for small-scale merchants who are already strapped for time, there are alternatives that can be quick and easy setup that can simplify the whole process for the merchant. In this case, they are often able to use already-built integrations for eCommerce, such as the Affirm Payments extension the easy addition of the BNPL option on their existing checkout page.
Benefits of having a the option to buy now and then the option to pay later for your Woo store
What benefits can a BNPL integration offer? First, integrations can simplify purchase processes for the ever-growing amount of consumers who would prefer to pay for the period of. Affording customers to be on your website and moving them towards the checkout process is essential, especially in the case of young customers who have grown up making purchases via the internet. It is actually reported that it's reported by National Retail Federation reports that over half (46%) of Gen Z respondents consider a simple checkout procedure to be essential for their purchasing experience.
A key aspect to be considered when setting up the integration is the overall user experience for the buyer. It's crucial that the buyer can view their choices for payment and complete the process of approval without needing to access an additional site. By integrating the system, retailers are able to make the process as simple and simple as possible for customers, ensuring that they don't stand from the purchase.
The ease of checkout helps in reducing cart abandonment. A recent Baymard Institute metastudy of 49 research reports found that the abandonment rate has remained at about 70 percent, and hasn't significantly changed in the last 10 years. One of the main reasons to abandon carts: a checkout process that was lengthy or complicated (22 percentage of times) as well as the website didn't offer sufficient payment options (responsible for 13% to 15% abandoning carts). When you have a well-integrated BNPL solution, retailers can solve both customer concerns in one go.
What is the most cost-effective purchase for today? Pay later or pay as you go
Picking an BNPL provider that is compatible with your needs as a business and also meets the needs of your customers is essential in determining the best fit. Affirm offers, for example, Affirm can provide customized payment options to merchantsthey can offer both the short and long-term option along with zero-interest payment options. Offering payment options which meet the needs of customers as well as standard prices, companies can increase the affordability of customers and possibly gain a customer ahead of the rest.
Another unique feature of Affirm is its Adaptive Checkout technology, which provides dynamically the most appropriate ways to pay your customers depending on the price of each item and the value of the cart. Personalization is the theme of this online gaming platform, Affirm customizes the time length as well as the rate of every purchase, providing various options for paying over time to your customers. This is all done within an easy-to-use user experience.
How do you let your customers, both current and future, inform them about the BNPL option prior to making a purchase? Depending on your target market it's possible to think about promoting the offer through social media channels. Retail Dive says that 85 percent of buyers' buying decisions are influenced via social media. Therefore, promoting the possibility of offering BNPL on these social media platforms can help you gain an advantage. If you're aiming at Gen Z, know that 45% of respondents ranked TikTok as well as Instagram as the top two apps that influence their purchasing choices.
Since summer is often the slowest time of year for businesses and businesses, it's a good time for merchants to concentrate on getting BNPL functional on their websites in time for when the Back to School rush signals the beginning of the busy days leading up to winter break. The merchants are able to make a judicious choice regarding vendors, get rid of the technical issues and begin the marketing efforts to announce the debut of BNPL as a new option for payment that could be utilized at payment point.
The presence of a BNPL option during checkout, and announcing it on social media might be a game changer for retailers looking to get more online transactions and compete with other retailers.
Are you ready to include flexible payment options to your checkout? Apply to Affirm for a start and then use your Affirm Extension to Payments feature to offer pay-over-time options through the payment process.
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*Payment options through Affirm will be subject to a test of eligibility and may not be accessible in all areas, and they are made available through these lenders: affirm.com/lenders.
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