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With consumer spending set to increase toward the beginning of the year, and as the trend of online shopping to grow throughout all age ranges Businesses are faced with greater chances and more competition for the money of their customers. It is a requirement for them to find new ways to meet the needs of their clients and also offer them additional ways to purchase from your company or site. One of the best places to begin is by looking at the checkout processlooking at ways to make it easier for shoppers. essential last step in buying and offering the option of payment to customers to enhance the shopping experience.
One of the newest trends that is rapidly gaining popularity in online shopping is"By Pay Later" or the "Buy Now, Pay Later" (BNPL) option when making your purchase. BNPL is a different choice for paying, and allows consumers to split the purchase price in reasonable intervals, such as, over a few weeks, or in some cases over several months.
Pay later and buy now is becoming increasingly popular.
A growing number of customers are taking advantage of pay-over-time options whenever they're readily available. 2023 was a year when online stores saw a substantial rise in the number of purchases conducted through BNPL with volumes increasing by 42.5 percent over the course of a year. It means that BNPL added around $16.6 billion on book of merchants in the last two months of the year. This is a trend Adobe expects to continue until 2024.
The estimated number of 93.3 million users are expected to use BNPL until 2024 according to EMarketer as well as American Banker reported that the BNPL market in the US could reach more than $8.3 billion by 2028. BNPL is becoming more popular by online retailers like Amazon.com and Amazon.com, which are likely to increase its presence as well as making it more popular with consumers who buy on the internet.
This is an indication that BNPL is an option which merchants must consider when they compete in a growing online market.
Buy now, payed later: A few things to consider
Implementing BNPL options to checkout prior to the time of checkout gives businesses more opportunities to attract new customers as well as build an ongoing connection with them.
If the retailer does not have a BNPL option at check-out This is a great time to offer one at the store. If they have it available by adding the BNPL option at the top of their sites, specifically during checkout, or by making announcements about the possibility via advertisements which can help establish their brand and enhance the experience of shopping for their customers.
The more noticeable the BNPL option appears on the site of an online retailer and the quicker they spread the word about it through emails, social channels, and on social media, the more likely it is that they desire to learn more. It will also help sellers attract more buyers to their websites and conclude the purchase.
BNPL assists merchants in increasing their popularity with those who want to buy products quickly, but they wish to control their cash flow with no credit. Through the ability of decomposing the cost of a product by, for example 4 installments of interest-free payment each 2 weeks, buyers are able to purchase the items they desire without delays. Certain BNPL firms, like Affirm and Affirm, provide lengthy terms of up to three months or even three years for carts with large size as well as expensive products.
Although adding a new payment method to the side of an online store might seem daunting to smaller companies already running on their own budget, there are alternatives readily available for quick and straightforward installation, that can streamline the whole process for the retailer and the seller. In this case it is common to employ already-built integrations for eCommerce, like ones that utilize the AffirmPayments Extension that allows customers to swiftly add the BNPL payment options on the existing checkout page.
Benefits of offering purchase today, pay later the Woo store
What benefit do an BNPL integration bring? In the first place, it can ease the purchasing process to the growing amount of consumers who prefer to pay for one set amount over time. Verifying that your customers are on your website and can pay for their purchases is crucial, especially for shoppers in the younger age group who have a habit of buying on the internet. According to the National Retail Federation reports that over 50% (46%) of Gen Z respondents consider a simple checkout process important to their purchasing experience.
One of the primary elements to be considered when it comes to integration is the experience of the shopper. It is essential that the buyer has the ability to see all payment options available and also go through the approval process without needing to navigate to the website of another. Through a pre-built integration sellers ensure that purchasing is as easy and painless as possible for customers and doesn't hinder the purchase.
An easy checkout process could assist in reducing abandonment of carts. A previous Baymard Institute metastudy of 49 research reports revealed that abandonment rates are about 70 percent, and isn't drastically changed over the last decade. The most common reason for carts being abandoned is the checkout process which was too complicated or lengthy (22 percent of the time) and also the site didn't offer sufficient options in terms of payment (responsible in 13 percentage of abandoned carts). Thanks to a well-integrated BNPL platform, retailers can resolve all customer issues at one time.
What's the best method to pick a pay now or choose a option to pay later?
It is important to select a BNPL solution that is compatible with the needs of your organization and with the needs of your customers are the most important factor in determining which solution is the most suitable. For instance, Affirm provides custom payment choices for retailers. This could comprise both short- and long-term and interest-free choices. If they offer payment plans that meet consumer wants and needs, as well as the prices, businesses might be able to increase the accessibility of consumers and gain a customer ahead of other competitors.
One of the most distinctive aspects of Affirm is its Adaptive Checkout technology, which provides dynamically the most appropriate alternatives for payments to customers based on the value of the product and the total amount of the purchase. It is a principle of Affirm's games online, Affirm allows you to customize the time and APR for each purchase, delivering a range of options that are suitable for paying over time to the customer, in one seamless user experience.
What are you able to do to make sure that your customers, present and future, know about the BNPL option before checkout? If your business is catering to certain area, you might want to promote it through social media websites. Retail Dive states that 83% of consumers' purchases are affected by social media. So, marketing the potential of offering BNPL through those channels could give you an edge. If you're targeting Gen Z be aware that 45% of respondents have mentioned TikTok and Instagram as the top applications which influence their purchasing choices.
As summer can be an inefficient time for companies, retailers have the chance to get BNPL operational on their site, before it gets busy. The rush to go back to school marks the beginning of the hectic weeks leading to the holiday season. It is the perfect moment to pay attention to suppliers, solve any issues with technology and develop an aggressive marketing campaign to announce the introduction of BNPL as a new payment option which can be utilized at check-out.
The availability of an BNPL option at pay and sharing the news on social media might make the difference for businesses hoping to boost their online sales and to compete against other retailers.
Are you ready to include the options of payments in your cart? Make an application for affirmation to begin by using the Affirm Extension for Payments. Affirm Extension for Payments allows pay-over-time to be made during the checkout process.
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Affirm offers payment methods for customers. Affirm is subject to eligibility checks and may not be accessible to all locations, however they are available through the lending partners listed below: affirm.com/lenders.
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