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Jun 27, 2024

As consumers are increasing their shopping during the first quarter of the year and increasing popularity of internet-based shopping is growing across all age categories Retailers face increased possibilities and competition for consumers' dollars. That means they have to find new ways to cater to the desires of shoppers as well as give them increased chances of buying via your store or site. One of the best places to start is to look at the checkout process, and look for ways to enhance this important last step of selling. You should also offering payment options to customers, which will enhance their satisfaction.

One trend that has rapidly gained popularity in the world of online shopping is"Buy now and pay later" "Buy now and pay later" (BNPL) alternative to consider when you purchase. BNPL is a type of payment which allows consumers to split the purchase price into affordable installments that are distributed over time. In certain situations, it can be done in two weeks and in other cases, over the span of a few months.

A lot of consumers are making use of the pay-over-time option once they are available. The year 2023 witnessed merchants on the internet experience the highest number of transactions made through BNPL as the volume of transactions growing 42.5 percent over the previous year. In the final hours of the day BNPL has added around $16.6 billion to the book of merchants in the final couple of months alone which is a pattern that Adobe thinks will extend into 2024.

Around 93.3 million users are expected to use BNPL by 2024, according to EMarketer and American Banker reported that the BNPL market in the US will likely to exceed $8.3 billion by 2028. BNPL is becoming increasingly widely accepted by the big online retailers, such as Amazon.com -- which is expected to increase its growth and attract more those who shop online.

This makes BNPL an option for businesses should think about when competing with the ever-growing market of online-based products.

Buy now, pay in the future Considerations to think about

The introduction of BNPL choices at checkout sooner rather than later offers merchants the chance to gain new customers and establish an ongoing relationship.

If a merchant doesn't offer the BNPL option when you the checkout process is the ideal moment to incorporate an option to the list of options. When a retailer does provide this option, placing the BNPL choice more prominently on their sites, particularly during checkout or promoting that they have the option by ad campaigns could aid in distinguishing their company and improve the experience of shopping for customers.

The more popular the BNPL choice is displayed available through an online store's website and the quicker they can announce the services through social and email channels, the more likely it is that consumers would be interested in learning more, which can help the retailer bring many more visitors to their site and seal the deal.

BNPL can help merchants expand their reach for customers who want to purchase products today, but wish to manage the flow of funds that is not backed by credit. If you can split the price of purchasing by for example, four installments of interest-free payments every two weeks, customers can get the items they require without delay. Some BNPL solutions, such as Affirm, also offer longer time frames that can range from several months to three years for carts with large sizes and high-ticket merchandise.

The thought of adding an additional payment option to the back end of an online shop might be daunting for small-scale sellers who already have a lot of time. However, there are alternatives which are quick and simple to set up. These will simplify the process for every step of the process for both the seller as well as the seller. Sellers, for example, benefit from the built-in integrations that are designed for e-commerce for instance the AffirmPayments extensions that lets them integrate the BNPL option on their existing checkout pages.

It is advantageous in offering the purchase now option with the option of paying later in the Woo store

What are the benefits that the BNPL integration provide? First, an integration streamlines buying process in order to cater for the ever-growing number of buyers who like to pay over time. Making sure that customers are on your website and moving towards checkout is essential, particularly for young customers that are used to online commerce. Actually, the National Retail Federation reports that fifty percent (46 percent) of Gen Z respondents consider a simple checkout process essential to their purchasing experience.

A key aspect to be considered when setting up the integration is the user experience for the shopper. It's essential for the purchaser to have access to the options for payment available to them and complete the authorization process without having to navigate to a different site. With an integration already built that makes the procedure quick and easy as they are able to for buyers, so that their decision doesn't hinder a sale.

A seamless checkout experience can aid in decreasing abandonment of carts. An earlier Baymard Institute metastudy of 49 research studies found that cart abandonment rate is still around 70, and it hasn't changed significantly over the past decade. Most people abandon carts: a checkout procedure which was lengthy or complicated (22 percent of the time) and also the site did not offer enough options in terms of payment (responsible for 13 percentage of cart abandonments). Because of the extensively integrated BNPL system, retailers can address both these customer concerns at once.

What is the most cost-effective purchase to make today? You can pay later or as you go

Finding the BNPL service that is compatible with the requirements of your company as well as your customers' needs is essential in determining the right match. Affirm as an example, Affirm has a range of custom payment options for businesses. These options could be shorter or long-term solutions as well as zero-interest options. The availability of options that meet the needs of customers in addition to standard rates Retailers can improve the financial affordability of customers and possibly win a sale against other competition.

A further feature that is unique to Affirm is its Adaptive Checkout feature that provides you with the best options to make payments to your customers keeping with the value of the product as well as the price of your shopping cart. Personalization is the theme of the online game, Affirm is able to change the length as well as the cost of each purchase, thereby offering a variety of options for paying over time customers in a seamless transaction.

What do you plan to do to make sure your customers clients and prospective customers of the BNPL choice prior to checkout? Based on the type of market your customers have in mind, you might want to consider promoting this offer via social media sites. Retail Dive claims that 85percent of consumers' purchasing purchases can be influenced through social media. So advertising the potential of offering BNPL via these platforms could provide you with an edge. If your goal is Gen Z be aware that 45 percent of those polled identified TikTok and Instagram as their top social media channels that influenced the purchase decisions of their peers.

The summer months are the most slow season for businesses There's a chance for retailers to focus on getting BNPL functioning on their sites before the Back to School rush signals that the busiest weeks leading to the winter holiday. You have the opportunity to keep an eye on the vendors you deal with, solve any problems with technology, and then begin marketing efforts to promote the debut of BNPL as a fresh method of payment that will be accepted when you check out.

The possibility of having an BNPL option for checkout and making it available via social media, could alter businesses looking to boost sales online and compete with the other merchants.

Are you willing to incorporate flexible payment options to your process of payment? Apply for Affirm as a first step and then use the Affirm Extension for Payments to give you the possibility of taking over-payment at the time of your payment.

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Payment options offered through Affirm is subject to credit checks they are not available all around the world and can only be offered through the lending partners listed in the following table: affirm.com/lenders.

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