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Ecommerce Conversions Boosted with Buy Now, Pay Later

Your product pages are conversion-optimized, and your checkout process is easy. Yet, your e-commerce conversion rate hovers around 2% to 3% — and that’s considered a good one.

Are you wondering why you aren’t getting more conversions from your visitors?

It is not so much the products, the brand, or the website design that is giving shoppers pause. Instead, it is your pricing that is giving them pause.

According to a survey, 87% of consumers say price is the most influential factor when they shop online. In fact, 49% of shoppers abandon their carts when they discover unexpected costs.

Prices are often a source of frustration for customers. Ecommerce retailers can use Buy Now, Pay Later (BNPL) to boost sales

You can boost your conversion rate by splitting up a purchase into multiple instalment payments so that your shoppers can afford to make more frequent or higher value purchases.
Is BNPL a possibility for you? Find out. The benefits of BNPL that retailers can enjoy range from increased customer loyalty to increased conversion. We explore how BNPL works and why it is so popular.

The Buy Now, Pay Later system

It’s just like it sounds: a customer buys something now and pays later. That works like this:
  • The first thing, a customer adds something to their shopping cart.
  • BNPL lets you split the purchase price into a handful of payments, usually four to six, over several weeks or months.
  • The customer pays the first instalment at checkout.
  • A merchant processes the order as usual, and ships it out to the customer.
  • The BNPL provider immediately pays the merchant the total purchase cost, less any processing fees.  After a few weeks, the BNPL provider collects the remaining payments from the customer.

BNPL’s biggest advantage is that consumers can purchase whatever they want when they want it, without worrying about breaking the bank. By splitting the cost of a purchase into manageable payments, they can fit it into their budget. In the meantime, the merchant benefits from increased conversions and cart totals without having to assume any of the risk – all that’s handled by the BNPL provider.

A way to view it, BNPL combines all of the best parts of credit cards and layaway without introducing any of the drawbacks, and modernizes them for the digital age. Both consumers and merchants do not have to deal with high-interest credit cards.

Integrate BNPL with Your eCommerce Store

It’s safe to say that BNPL is here to stay as one of the top ecommerce trends. This fan favourite payment option is popular among consumers and retailers alike.

Let our team help you take advantage of one of the most popular trends in eCommerce!