All payment methods are not equal. Putting a large purchase on a credit card may seem easy, but your consumers are more concerned than ever with how to pay for their purchases without accruing unexpected costs.
Offering a “buy now, pay later” choice at checkout is more than just a nice-to-have; it is quickly becoming an essential, anticipated part of the shopping experience. This is especially true for your expanding Millennial client base.
With buy now, pay later becoming more popular, you might be wondering if it is something you can sell in your online store. Here are a few reasons why you should start offering buy now, pay later options on your online store.
Younger Buyers Prefer Purchase Now and Pay Later
Buy now, pay later options of all kinds are becoming increasingly common, and young people are driving this trend. Newer folks are less likely to believe conventional financial institutions in particular, but they also need flexible payment options.
Buy now, pay later deals like layby act as a new version of layaway, allowing young shoppers to repay over time without using a credit card. More well-known companies are accepting these payment types, implying that they are now something that consumers want to see everywhere.
Customers are abandoning credit cards in favour of buy now, pay later plans.
Credit cards continue to be a common payment method but using them as the main method of payment for your business is only a nice choice if all of your customers have one. The percentage of credit cardholders in your target demographic will be much smaller than you anticipate.
Millennials are hesitant to hold a high credit card balance. Many customers are attempting to escape the unsecured credit that these payment mechanisms may facilitate. According to one report, Millennials hold two fewer credit cards and private brand cards than their Gen X equivalents.
In reality, only 33% of Millennials have a credit card, and many tend to use their debit cards for everyday purchases. Buy now, pay later is a great option for those who do not have ties to a line of credit or do not want to rely solely on it.
Increases Sales
Since buy now, pay later solutions fix the customers’ checkout pain points, they can help boost sales and ordering values. PayPal discovered that when retailers began to provide financing, average transaction values increased by 15%, and Bread’s AOV improved by more than 30% with buy now, pay later.
Thirty percent of shoppers who used buy now, pay later solutions said they wouldn’t even have bought the product if not for the six-month financing available to them. Options for buy now, pay later may also result in a 17 percent rise in incremental revenue.
Improve Your User Experience
A smooth, full-funnel, white-labeled buy now, pay later solution will remove friction from the purchasing process by displaying all financing details to consumers at or before checkout. Bread provides a smooth, cohesive experience that suits your brand’s, allowing consumers to comfortably make their way to the counter with financing.
