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bitheerani44455
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| Dołączył: 29 Gru 2024 |
| Posty: 1 |
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 Wysłany: Nie Gru 29, 2024 06:22 |
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Buy now, pay later (BNPL) is a way of offering credit financing to customers through simple installment plans.
Therefore, although the final costs are slightly higher than the cash purchase price, there are companies like Sezzle that offer interest-free installment payments.
Affirm is one of the most widely used BNPL options in the US because it offers customers different data on amounts, terms and interest rates. According to Affirm , around 30% of its “loans” are interest-free, while the rest range from 10% to 30% interest. In this segment , we have other good BNPL options such as Klarna, Amazon and Moneysmart.
If a merchant accepts PayPal payments, they simply need to add a simple functionality to their checkout button to integrate BNPL with PayPal Credit. As a result, the merchant will receive 100% of the purchase amount upfront, and their customers will pay PayPal in installments. PayPal itself will be responsible for managing these charges.
Why is BNPL attractive to some customers?
For many customers, adapting installments to their budget is the main reason for using BNPL.
According to Sezzle, 50% of shopping cart abandonments are due to the cost of fees; and the fact that two-thirds of young people do not have credit cards. Therefore, by offering “credit” to your customers, you will become the partner that treats them as responsible and valuable buyers.
In the US, demand for BNPL payments is so high that it is second only to credit cards as a form of payment. Thanks to younger consumers’ familiarity with this technology, BNPL payments generated $1.8 trillion in revenue last year in the US. Among millennials, 70% of their purchases are paid for using BNPL.
Potential benefits for your store
According to PayPal’s metrics, 42% of its BNPL customers would not have purchasing power without some form of credit offer. Additionally, around 56% of its customers also note that they are more likely to purchase again from a retailer that offers this credit checkout option.
Coresight, a consulting firm , has found that stores that offer BNPL financing see gains in average order value and overall transaction volume. They also found that first-time visitors who are aware of BNPL tend to purchase up to 50% more products from e-commerce sites that offer this credit.
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