Are you also seeking the actual benefits of BNPL for your business growth?
The terminology ‘Buy Now Pay Later’ works as the form of interest-free, which is like short-term credit and enables consumers to pay for certain goods in installments.
It carries a greater significance as it perfectly coincides with the popular online shopping portals and allows brands to reach faraway people.
This blog will elucidate how ‘Buy Now Pay Later’ works in the best way for every kind of business, whether small or big.
What exactly is BNPL?
The term BNPL works like a payment option facilitated by an increasing number of online retailers. It is usually classified as a point-of-sale loan that allows customers to pay for their goods in more than two ways.
Pay Later – The payment gets executed by a specific date in this option. For an assumption, a fee occurs after 30 days of the purchase.
Installment– This option is regarded as a small down payment. It can be paid during a week, fortnight, or even monthly.
Another point linked with BNPL is that it doesn’t involve hard credit checks and remains entirely free of interest and fees. Moreover, the late payment charges shall be applied if the customer misses the scheduled payment. It is usually offered by third-party companies.
How does BNPL work? Read to know its functioning process.
Customers can select the BNPL option anytime during online checkout. As per the banking and finance rules, the BNPL provider facilitates a ‘soft’ credit check that authorizes the purchase made by a customer. This check does not leave any trace over the customer’s record.
The retailer can receive the full payment from this method immediately. The customer’s order is processed and shipped as usual. The BNPL provider can gather prices from the customer on specified dates. It can also assess credit risk.
In addition, the facilitator of such payments is liable to cancel all specified payments and issues that need a direct refund from the customer.
Know The Benefits of Buy Now Pay Later for Businesses
Many developed economies worldwide prefer the Buy Now Pay Later method, as it is the
fastest-growing online payment method. Moreover, the BNPL target markets carry millennials and Generation Z. According to the study conducted by Forbes; there remains an increasing number of Gen X and Baby Boomers who have begun to show their interest in this free-payment option.
BNPL allows the organization to increase its sales in terms of transactions and value orders. It will enable organizations to sell their goods to faraway customers. When asked about high-value items, this payment method can ease the blow of parting with a certain amount of money in one go.
Improve Trust & Credibility
Secondly, it enables organizations to trust businesses that offer BNPL options. This is because the providers verify and check the retailer and allow people to shop with foreign companies. On the other hand, it reduces the consumer’s risk and commitment as they can quickly look out for their item before purchasing it.
In the end, this newly invented form of payment called BNPL will improve customer experience and develop the trust and credibility of customers in brands. Plus, it will increase the likelihood of customers repurchasing the product. This is why it is becoming a popular choice among many emerging brands.