Buy Now, Pay Later!

Hello everyone! Welcome to the Talk About Your Business segment where we talk about......you guessed it...Business! I'm curious as to know how many of you have heard about BNPL, also known as the "buy now, pay later" payment option? Since the pandemic, this has become a prevalent practice for many businesses, as mentioned in this article by Forbes. They shared why this would be a wise business decision in 2021 and beyond. 

One reason is that it will work for items that may be on the higher end of the budget. For example, selling luxury goods like jewelry would make it easier for customers to decide to purchase your goods. Not only would it work for high-end products but also cheaper items. With customers having this option, it opens the door for them to increase their order size. For example, instead of purchasing one dress, they may buy three. That way, you are getting more value out of one sale. Also, this could have them coming back more to add goods, building up your customer base.

Although this all sounds easy to implement, it can come at a cost. For example, incorporating this wouldn't make sense if payment fees are the same price as the items. On the flip side, the high processing cost of payments can also affect you since you may have to fund these costs.

However, as customers have been a bit more price-sensitive lately, this model would be a great addition to your business as it increases your average order value and attracts potential consumers.

I encourage you to look through the article! You can share your thoughts below as well, and if you have added this to your business, have you seen an increase in orders size and customer base? Until then, have an awesome weekend, guys!