As you know, BNPL (Buy Now, Pay Later) is a leading online payment method that enables millions of users to buy numerous products using easy monthly installments.
Besides, they can take advantage of other salient benefits like convenience, zero interest, etc., to appropriately reap the rewards of this impressive payment mechanism.
This blog post will describe how BNPL services help online shoppers make smart financial decisions by purchasing various products and how BNPL service providers can make their services and products more impactful for consumers.
Why BNPL services have become people’s preferred choice?
People depend on BNPL arrangements when striving hard to purchase the best available commodities under their budget. They can shop for multiple products once they opt for this method.
Here are some benefits of BNPL options that entice people to a great extent:
- Easy monthly installments
- User-friendly approval process
- Zero or marginal interest rates
All these benefits mentioned above encourage people to continue using BNPL products over an extended period.
BNPL Services Provide Peace of Mind to Customers
If we say BNPL products or services have increased customer satisfaction, we are right to a certain degree. Additionally, three-quarters of BNPL consumers are satisfied as they can use various BNPL options hassle-free.
However, this is different with younger but low-income consumers. They are not satisfied with their existing BNPL options. Apart from this, they want to experience similar benefits offered by credit card installment plans when using a wide range of BNPL options.
BNPL is Suitable for Holiday Spending
Buy Now Pay Later services help retailers appropriately grab the attention of current and new customers. Moreover, people with higher earnings are inclined to use BNPL services in huge numbers this year.
If you are willing to manage your holiday spending this year without stretching your budget, consider getting BNPL services. By doing so, you can support your holiday expenses through BNPL services and enjoy the upcoming holiday season with your loved ones trouble-free.
How Can Companies Make their BNPL Services Impactful?
Organizations that provide BNPL services to their customers can benefit from various tactics that allow them to enhance their conversions and sales.
Here is the list that includes several tactics:
- Reward program is a go-to option
- Increase spending limits
- Collaboration with other fintech organizations
- Optimized user experience offers long-term gains
– Reward program is a go-to option
Reward programs help BNPL companies compete with credit card service providers. To survive in the e-commerce industry, they should realize the importance of reward programs.
They can entice their current and potential consumers with a variety of options, such as discounts, loyalty points, cashback, etc.
– Increase Spending Limits
There is no harm in increasing the spending limits of consumers who demonstrate responsible payment behavior over time. This way, you can build meaningful associations with them. Furthermore, you can encourage them to make regular purchases in the future.
– Collaborations with Other Fintech Organizations
When BNPL companies collaborate with other fintech organizations to offer exclusive deals, they develop a near-perfect scenario for customers and themselves. In addition, they entice potential users to adopt BNPL services.
– Optimized user experience offers long-term gains
BNPL firms must concentrate on enhancing their customers’ experience. They should make their apps or websites engaging for their consumers in terms of content and user experience.
In short, the whole shopping process must be simple and seamless for your customers.
How Can BNPL Options Facilitate Customers?
As per the research conducted by PYMNTS, 28% of customers have shown great interest in using deferred payment plans. These deferred payment plans include credit card installments and BNPL services.
In reality, consumers prefer to go with deferred payment plans due to three reasons. These reasons are convenience, financial cushion, and the opportunity to purchase more.
Another report indicates that deferred payment plans have become a new normal when making all sorts of purchases. Interestingly, 67% of customers have preferred credit card installments when buying groceries.
On the other hand, 56% of customers have relied on BNPL services when purchasing groceries. In short, with deferred payment plans, consumers are willing to pay for different products depending on their needs.
Therefore, BNPL platforms must add invaluable advantages of deferred payment plans, i.e., convenience, financial cushion, more opportunities for purchasing, etc., in their armory to facilitate customers.
BNPL Trends to Look Out For in the Future
Companies should keep a closed eye on BNPL trends that can make BNPL products and services viable. This way, they can adequately exceed their customers’ expectations with the right approach. These trends are:
– Rewards should Revolve Around Personal Preferences
Companies that offer BNPL services should use data analytics effectively. By doing so, they can engage with their customers by providing customized products or services.
Moreover, they can capture their attention with personalized rewards based on their spending behavior.
– Companies should Support Sustainable Shopping
Organizations must reward customers who prefer to buy sustainable products or services. If they support environment-conducive practices by making sustainable purchases, companies must compensate them with attractive incentives.
Wrapping Things Up
BNPL (Buy Now, Pay Later) options have transformed our lives for all the right reasons. Additionally, they have helped people make wiser financial decisions. As a result, people have significantly improved their lifestyles worldwide.
However, BNPL platforms need to up their game because credit card companies are still hampering their growth as they offer several attractive benefits to keep their customers engaged.
Besides, they should concentrate on emerging trends that will enable them to leverage the potential of their products and services.
Frequently Asked Questions
What should I do to increase my BNPL limit?
As you might know, BNPL (Buy Now, Pay Later) primarily works as a credit product. Furthermore, it facilitates consumers who abide by its repayment schedule.
You can take advantage of larger credit limits if you maintain a good repayment history.
What should we do to attract customers to BNPL?
When attracting customers to BNPL services, retailers need to focus on their BNPL marketing strategy. For instance, they should create long-term yet impactful relationships with their customers.
Besides, they should concentrate on enhancing their visual identities. Similarly, they must make the most of the data in the desired manner. For instance, they should know how their retail financing services perform when helping customers fulfill their long-term goals or objectives.
Who has benefitted from BNPL so far?
BNPL has gained massive popularity among renters and homeowners in recent years. At present, 22% of renters have used BNPL services or products lately. Likewise, 15% of homeowners have used BNPL services to improve their lifestyle accordingly.
Why are BNPL services beneficial?
BNPL services allow customers to break their larger payments into smaller, manageable installments. Consequently, it will not make them financially anxious when the credit card payment is due. More importantly, BNPL loans do not have an interest rate, meaning they do not need to pay anything extra except the principal amount.