The fastest growing payment method for ecommerce is Buy-Now Pay-Later. BNPL was created to allow merchants to purchase on credit and then pay it back at their convenience. Although it was originally developed for credit cards, it’s considered to be a much more promising option in this industry. The number of customers who have opted for BNPL services has increased by 162% from 2018 to 2019.
BNPL platforms are becoming increasingly important to merchants due to the many benefits that they offer. BNPL also simplifies the shopping experience by seamlessly integrating into ecommerce as a checkout option.
Every small merchant wants to understand the basics of buy now and pay later. This includes how the integration works and managing the checkout process.
Merchant’s Perspective on Integrating BNPL Into Their Shops
BNPL, from the point of view merchant checkout design is simply another option to pay. As with all new payment methods, customers will need to be able to access this option through backend integration.
However, BNPL connections can be simple and are technically comparable to many popular alternatives like credit cards, debit card, or digital wallets. Merchants can access BNPL payments through a website hosted by payment service providers (i.e. Merchants will be able to use a hosted payment page, which makes it easier for them to initiate BNPL payments.
Moreover, the addition of popular BNPL options, such as Affirm, Klarna and Afterpay to the payment mix, is equivalent to Apple Pay or American Express. The option can be integrated directly by merchants with the BNPL supplier, or through their existing payment service provider. Integrations using current payment providers generally reduce merchants’ integration burden.
Shopping Carts Benefits
A merchant can reap the many advantages of BNPL. First, it improves the conversion rate for a product. A 2020 study found that 88.05% online orders are abandoned because they lack the funds necessary to buy them. Using a BNPL layout can help to alleviate the problem. Buyers are able to buy products with credit.
BNPL, in the same way, allows retailers make larger purchases less expensive by spreading them over a period of three, four or six months. This makes it easier for them to reach a wider audience. Furthermore, it also enables merchants’ to make high-value items more affordable through the use of a flexible payment structure. It also increases the average order value, or how much a customer spends when making a purchase.
Additionally, the customer experience is enhanced, which ultimately leads to increased sales and customer loyalty. These systems, which are BNPL-designed, have huge potential and will be a game changer for TradFi. As this next generation of platforms enters the financial markets, things will change.
In reality, there are many BNPL startups already making noise within this sector. With its blockchain-based approach, @Pay disrupts traditional FinTech. Smart contract technology allows for significant cost savings. It wants to be the leading provider of decentralized financial e-commerce solutions and in-store services for merchants and customers.
Enhancing the overall customer experience
BNPL has many benefits for merchants. However, customers are also embracing it. It allows them to quickly access a limit of credit that they can use to purchase items. While it is similar to small-ticket loan, BNPL has gained in popularity and importance for one reason. It offers a simple and seamless user experience. BNPL makes shopping online easy, quick, and simple.
Platforms like @Pay make it possible. They provide customers the most user-friendly experience, making shopping easy and smooth. It allows customers to shop with any of the approved cryptos they own in their @Pay wallet. Additionally, the platform rewards users for using their ecosystem to make purchases. It aims to offer users interest-free credit through the development of a fiat to crypto interface for eCommerce.
A New Standard in Payments
The use of mobile wallets and frictionless contactless experiences at checkout in retail environments continues to grow, so BNPL will also continue its rapid rise. BNPL will not be going away, as @Pay and other platforms are making great strides. Customers increasingly use BNPL services to purchase goods outside of eCommerce. They may soon be as widespread as credit cards payments.