Why'Buy Now, Pay Later' Options Are Crucial For Growth

Offering BNPL payment options like Afterpay and Zip Pay is now essential for many forms as retailers as a means to attract high lifetime value shoppers such as the all-important Millennials marketplace

Quick and flexible payment options are becoming more important to clients and essential to multi-store retail expansion. Specifically,'Buy Now Pay Later (BNPL)' solutions like Afterpay and Zip Pay.

In Australia, BNPL has reached critical mass, with 1.8 million consumers and an expected growth of over 120% this year. Both retailers and shoppers agree that customers using BNPL tend to spend more, buy more, shop more often and be more faithful to retailers who supply it. (1)

Rise of the Millennials

Leading the market share in expansion for BNPL are Millennials (Gen Y) with 40.6% users, followed by Gen Z with 35.1%. (1) By 2020, it's projected that Millennials will have the maximum spending power globally. With 90% preventing credit products by choice because of cost and risks, many are turning to BNPL choices as a much better way to budget for those items they want.


See also

https://www.connectpos.com/pos-transformation-in-physical-store-workflow/

https://www.connectpos.com/pricing-options-for-different-pos-systems/

https://www.connectpos.com/6-must-have-pos-integrations/

What's the worth of BNPL to retailers?

90 percent of online shoppers continue to utilize BNPL on subsequent purchases. (2)

The growing popularity and demand for BNPL choices has been disruptive to traditional payment solutions, and here is why:

  • Improved conversion -- BNPL payment solutions provide shoppers with the chance to buy something that they would have otherwise walked away from.
  • Increased transaction value -- using credit means clients are ready to spend more on what exactly they desire. (3)
  • Increased potential client base -- by opening up to new payment channels, retailers can encourage new audiences to store.
  • Repeat revenue -- BNPL builds relationships with clients who keep coming back for more. 90 percent of Afterpay's transactions are from returning clients, who on average store using Afterpay 9 times annually.
  • Fewer abandoned online buys -- 75 percent of all shopping carts are abandoned before buy. BNPL improves these conversion prices. (4)
  • Minimising fraud and risk -- BNPL payment solutions handle all credit and fraud risk so that you can scale your company with less risk.

How can BNPL improve the customer experience?

80 percent of retailers say that BNPL is something their customers desire. (2)

The advantages of BNPL payment options help drive a more pleasing and seamless customer experience. Here are the reasons why:

  • Fuels the demand for instant gratification-- with an increase in choice, shoppers can use BNPL to take home the things they really want, without needing to reach in their savings.
  • Reduces friction from the shopping trip -- shoppers do not need to wait, overlook, or awkwardly find they do not have sufficient money for their items at checkout.
  • Enables controlled spending-- the worry of getting a surprise invoice at the end of the month is removed, which is among the attractions of BNPL over credit cards.
  • No / reduced fees-- many BNPL services charge lower or zero interest fees that again makes them an attractive alternative over the significant credit cards.

POS and BNPL Integration

Omni-channel POS applications such as ConnectPOS which has direct integration into the major BNPL services like Afterpay and Zip Pay permits you to make a seamless and quicker payment experience for your clients in-store and on the internet.

The Effective Business Intelligence performance of ConnectPOS also means retailers can leverage valuable client and product insights from purchases made through every BNPL service:

  • A smart product search and up-selling and cross-selling engine advocates the most relevant assortment of products to suit BNPL clients.
  • Powerful profiling and advertising tools deliver highly targeted campaigns to offer you the most important products and offers within the BNPL clients' lifetime.
  • Implementation of innovative loyalty programs to guarantee BNPL clients are rewarded and form long-term relationships
  • BNPL purchases could be identified and compared with other payment methods with the platform's unrivalled reporting capabilities.

Beyond BNPL solutions, ConnectPOS comes with an extensive assortment of direct integrations to Tyro, Shopify, Xero, MYOB and many more leading retail software applications. By creating an integrated retail technology stack using best-of-breed solutions in every important area you can dramatically improve business profitability (check out this site to determine how). View our whole assortment of integrations here.

Sources

https://www.connectpos.com/magento-pos/

https://www.connectpos.com/shopify-pos/

https://www.connectpos.com/bigcommerce-pos/



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