It’s no secret that the economy is in a bit of a slump. And while it might not be time to panic just yet, it’s always a good idea to be prepared for the worst. One way to do this is by implementing buy now pay later solutions on your website. This will help keep your business afloat during tough times, and can even help increase sales! In this blog post, we will discuss the benefits of buy now pay later solutions and how you can get started today.
What is “buy now pay later”?
Buy now pay later (BNPL) is a payment option that allows customers to purchase items and defer payment for a set period of time of their choice. It usually takes anywhere from a few weeks to a few months. Customers are typically required to make minimum monthly payments, but the full balance is not due until the end of the deferred period.
Benefits of BNPL
There are many benefits of offering BNPL options to your customers. First, it helps increase sales by making big-ticket items more affordable. Customers who may have been hesitant to make a large purchase can do so with BNPL, knowing that they don’t have to pay for it all at once. Second, BNPL can help build customer loyalty. Those who take advantage of this payment option are more likely to come back and make future purchases from your store. Finally, BNPL can help you weather a recession. By offering this payment option, you give customers the flexibility to make purchases even when times are tough.
While the benefits of BNPL are clear, there are a few things to keep in mind before implementing it on your website. First, make sure you understand the terms and conditions of the provider you’re using. Some providers may have hidden fees or require customers to meet certain criteria. Second, be prepared for an increase in default rates. This is typically higher with BNPL than other payment options. Finally, make sure you have a plan in place to collect payments if customers don’t pay on time. This could include sending reminders or even hiring a collection agency.
BNPL providers
There are a number of different BNPL providers out there, so it’s important to do your research and find one that best suits your needs. Some popular providers include PayPal, Afterpay, Klarna, Affirm and QuadPay.
PayPal
PayPal is one of the most popular BNPL providers and is used by millions of businesses around the world. PayPal offers a number of different BNPL options, including deferred payments, interest-free installments and no-interest loans.
Afterpay
Afterpay is another popular provider that offers deferred payment plans with no interest or fees. Customers can make four equal payments over eight weeks, and the full purchase price is not due until the end of the deferral period.
Klarna
Klarna is a Sweden-based provider that offers interest-free financing for up to 24 months. Klarna also has a “Pay in 30 days” option for those who want to pay for their purchase later on.
Affirm
Affirm is a US-based provider that offers interest-free financing for up to 18 months. Affirm also has a “Pay over time” option, which allows customers to make monthly payments with interest.
QuadPay
QuadPay is a US-based provider that offers interest-free installments for up to six months. QuadPay also has a “Buy now, pay later” option for those who want to defer payment for their purchase.
Getting started with BNPL
If you’re interested in offering BNPL on your website, there are a few things you need to do. First, you’ll need to sign up with a provider. This is typically done through their website or by contacting them directly. Once you’ve signed up, you’ll need to integrate their payment solution into your website. This can be done with a plugin or by adding code to your site’s checkout process. Finally, make sure to clearly advertise the BNPL option on your website so that customers are aware of it.
Other payment solutions for your business
In addition to BNPL, there are a number of other payment solutions you can offer your customers. These include traditional methods like credit cards and debit cards, as well as newer options like cryptocurrency and mobile payments.
Credit cards and debit cards
Credit cards and debit cards are the most popular payment methods worldwide. They’re easy to use and accepted by most businesses.
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that uses encryption to keep transactions secure. Some of the most well-known cryptocurrencies are Bitcoin, Ethereum, and Litecoin.
Mobile payments
Mobile payments refer to any type of payment made using a mobile device, such as a smartphone or tablet. Mobile payments can be made through apps, text messages or NFC (near-field communication) technology.
Conclusion
BNPL is a great way to increase sales, build customer loyalty and weather a recession. However, there are a few things to keep in mind before implementing it on your website. Make sure you understand the terms and conditions of the provider you’re using and be prepared for an increase in default rates.
