In olden times I remember my grandpa getting groceries and provisions from nearby brick-and-mortar shops and paying commodities in credit during the month-end (monthly budget becomes nil by month-end). This credit system is interest-free. He used to stick to these shops as both the parties established credibility and assurance for each other.
Time flew, and online platforms became the medium to buy and sell commodities. Now my grandpa wonders whether we could buy things online using a credit facility. My answer was yes, but not interest-free. The next question he asked was whether we could purchase online with an interest-free credit facility. Well, my answer was no-till Buy Now Pay Later became the latest trend in e-commerce.
It is a payment mode that allows you to purchase and pay after a short term in instalments. You can know when the payments are due and can budget out your money according to your payment option. You have options to choose your payment plans and then get them approved instantly. The highlight is you don’t have to pay interest for a stipulated period, and no credit check is involved.
Companies like Amazon Pay Later, Simpl, ZestMoney, Paytm PostPaid, Flipkart Pay later, etc offers BNPL option to you.
Breaking up the payment into instalments allows customers to increase their buying power. Researches show Millenials and Gen Z are choosing this mode of payment. BNPL has been handy for those who are short of cash. It helps to purchase high-priced items affordably and increases the conversion rate.
BNPL allows a company to gain customers’ trust and loyalty. Customers who have never purchased from you get attracted to you if your e-commerce business offers the buy now pay later option. Also, customers can return the item if they do not like them. All these result in gaining trust and frequent purchases which improves brand visibilty as well.
Buy Now Pay Later is typically interest-free. This option is for those who do not miss a payment. But customers who default the instalments may be banned from further purchases and incur fees and penalties.
Buy Now Pay Later has turned out to be a way to manage monthly budgets. It is a facility that offers instant credit buy without any document uploads. Instilling such payment techniques in your e-store will help you meet your customer needs, and the satisfaction and ease of purchase will drive more customers to your e-store.