Buy Now Pay Later Creates Wins for e-Commerce Brands
Convenience and Perks
As e-commerce competes with brick and mortar retail, introducing as many complexities as opportunities, online brands must find ways to amplify the convenience factor to shoppers. This goes far beyond offering shopping from anytime, anywhere, but also providing the tools to drive shopper conversion. Nothing says we’ll make it easy for you to spend with us than extending credit. While Buy now Pay later is not your traditional department store credit card, it actually is more powerful because it truly creates access for most to shop with extended payment terms.
Giving Consumers (some) more buying power
Flexible spending has a whole new meaning and it’s not tied to employee benefits.
Spending Flexibility
With repayment options that extend the number of payments and time to repay, BNPL offers shoppers increased spending flexibility. This feature allows shoppers to get what they want and spread the cost over several smaller payments relays a sense of budget management and thus spending flexibility. This might make it easier for some shoppers to afford larger items without straining their finances.
A Different Type of Credit
While BNPL is not considered traditional credit, no one can argue that these financial products don’t in fact offer alternatives to traditional retail credit cards.
Interest-Free Repayment Periods
Many BNPL services offer interest-free periods, which means if shoppers pay off the balance within the specified time frame, they won't incur interest charges. This is a boon for online retailers who use this feature to strongly differentiate against brick and mortar stores and credit cards, which while offering shopping access, come with high interest rates.
Minimal Impact on Credit Score
Unlike traditional credit cards, most BNPL services don’t perform a hard credit check when shoppers apply or sign up for this payment option, which means the consumer’s credit score may not be negatively impacted by using these services.