These titans of retail all share something in common when it comes to payment plans. They, and over 6,000 other Canadian and international retailers, are offering PayBright’s buy now, pay later option to their customers at checkout, both in-store and online.
Offering customers a choice in how and when they pay for products or services can grow a customer base, improve the customer experience (which builds loyalty and repeat business), drive in-store and e-commerce sales, and lower instances of cart abandonment.
Wondering whether buy now, pay later is something that could integrate easily with your e-commerce or brick-and-mortar business? Or how it could support your bottom line? Let’s break down what it is, and the most compelling reasons your business should begin offering payment plans to your customers at checkout.
But first: What is ‘buy now, pay later’?
Whatever you call it, it is a popular payment choice for Canadians right now, particularly for those doing the vast majority of their shopping for electronics, furniture, fashion and apparel, sports equipment, and more.
And as the retail landscape continues to evolve, it’s becoming quite clear that buy now, pay later is the future of financing.
6 reasons your business needs a buy now, pay later option
1. Expand your customer base by expanding your payment options
Today’s online North American shoppers, especially Millennials and Gen Z-ers, are gradually moving away from credit cards in favor of payment methods that do not negatively impact their credit scores, produce high bills or balances, or otherwise stop them from saving their hard-earned dollars.
According to the Financial Post, only one out of three U.S. Millennials carries a credit card, and those in the 18–24 age group preferred paying cash over other payment methods when shopping for anything from electronics and furniture, to fashion and apparel.
Some shoppers are fleeing credit card fees in favor of cash or debit in Canada, too. This is why retailers are offering more buy now, pay later options: In doing so, they’re extending an increasingly popular payment option to Canadians in-store and online. Since these payment plans are made for everyone, the audiences businesses seek are easier to find: With PayBright, for instance, up to 96% of adult Canadians are eligible for a PayBright plan—a broad customer base indeed.
2. Improve your customer experience and CSat scores
The customer experience you provide at any stage of the buying journey is crucial to customer relationships. In fact, as KPMG notes, customer experience is the catalyst for change in the payment industry, moving it further away from traditional transactions, with “a growing number of non-traditional financial players … seeking to own the customer relationship through their payment platforms.”
If your customer experience and customer satisfaction scores are suffering within particular demographics, consider ways to modernize them, such as adding more customer support channels, personalized experiences, and flexible payment methods in your physical or e-commerce stores.
3. Increase sales and find new revenue streams
Retailers with either in-store or e-commerce businesses know the impact abandoned carts or poor payment experiences can have on cash flow. This is why it’s important to take measures to limit these instances by way of offering modern payment plans.
Businesses who offer flexible payment methods to consumers see the immediate benefit: Some note an increase in average order value (AOV) of more than 30%, meaning that installment payments encourage larger basket sizes and higher-priced sales.
And, by overcoming price objections and reducing cart abandonment, businesses offering BNPL note a 25% increase in sales conversions. So, offering a new payment option opens up new revenue streams for your business.
4. Reduce sticker shock and lower cart abandonment in your store
Sticker shock is one of the many reasons consumers abandon their carts. The reality is, for big-ticket items in particular, many consumers simply cannot afford to spend a large amount in one go. This is where buy now, pay later options provide some relief.
Offering customers the ability to pay in installments, either bi-weekly or monthly, allows them to re-imagine the cost: What was a $1,200 purchase quickly becomes a series of affordable $100 payments, and aligns with a customer’s monthly income and bill-payment habits.
Because of this, Canadian retailers using PayBright have noted lower cart abandonment since implementing payment instalments that reposition price tags—it continues to encourage customers to commit to purchase and pay at a cost and frequency that works for them (and you).
5. Offer buy now pay, pay later with 0% risk to your business
Businesses may be wary of the potential challenges of offering installment payments in their stores, and managing potential non-payments, fraud cases, and other payment-related issues.
Luckily, with third-party BNPL providers like PayBright, they take on the risk of fraud and non-payment so businesses do not have to. Installment payment providers manage automated billing, repayment, and any instances of delinquency or fraud—so businesses can operate as per usual without expending any added resources or energy.
6. Enjoy an easy, flexible payment option for your business.
Setting up and deploying a BNPL option at your POS, whatever the channel, is easy and quick.
In fact, in PayBright’s case, the payment method integrates easily and is available on most major e-commerce platforms (think Shopify or Magento), which makes meeting your customer’s payment needs a breeze.
‘Easy’ and ‘flexible’ also goes a long way in describing BNPL. Businesses have choice in the payment plans and minimum spend that applies to them—it’s not a ‘one size fits all’ scenario. Retailers can opt to offer ‘Pay in 4,’ an interest-free, bi-weekly payment plan for smaller-ticket items that will not impact a customer’s credit score.
Or, they can offer customers ‘Pay Monthly’; built for larger-ticket items, customers can opt to pay in equal monthly installments anywhere from 6 to 60 months.
By offering a buy now, pay later option at checkout, you’re rising to meet the financial needs of the modern consumer. You’re also rising to meet the needs of your growing business, and at no risk to your bottom line. The future of financing is here: It’s called buy now, pay later.
Want to learn how to get BNPL-ready today? Get in touch!