The eCommerce world is a competitive marketplace, and needless to say that gaining an advantage in the marketplace is highly valuable to merchants. One way this can be achieved is through the adoption of emerging technologies and new, more efficient, ways of working.
One factor that has become extremely popular with eCommerce retailers in recent years is Buy Now Pay Later (BNPL) applications. These neat pieces of software can be downloaded for free on both iOS and Android smartphones and provide additional functionality that can boost your sales.
Benefits of Buy Now Pay Later Apps
As the name suggests, these apps allow customers to enjoy the convenience of being able buy products now and delay the payment for a set amount of time - usually on an interest-free basis. It’s a critical trend in the industry that allows individuals and businesses to purchase what they need without struggling financially.
People are struggling right now, with high inflation, crazy fuel prices and the cost of living seeming to rise daily. As such, BNPL apps have never been more useful than they are right now. From small home appliances to high-ticket items, it permits people to buy products and services when they otherwise couldn’t.
Naturally, this helps retailers to sell more, but also offers a range of benefits that include:
- More flexibility for your customers
- Reduced shopping cart abandonment
- Enhanced customer satisfaction & loyalty
These platforms are here to stay too, as the industry is said to now be worth over $100 Billion and studies show that 50% of all Gen Z buyers are expected to use BNPL by 2025. It would seem that these apps offer an opportunity that’s too good to miss.
Of course, there’s a myriad of options available, meaning that deciding on the correct one involves a degree of research being carried out. So, to help you choose which is right for your eCommerce business, we now look at the 4 best options on the market.
First up, we have Sezzle, a Minneapolis-based provider that opened its doors in 2016. With 3.4 million active users, their BNPL offering features a unique approvals system. As orders are placed, the system reviews your account and then calculates an affordable payment plan that can be offered.
Typically speaking, a buyer using Sezzle to purchase your products will have to pay a down payment of 25% of the total order value. The remaining balance is then divided across 3 additional payments, each of which is due on a two week basis over a 4-6 week period.
Other things to know about Sezzle are:
- They charge absolutely no interest on the purchase price
- No fees are ever added, unless payments are made late
- The purchase will have no impact on a person's credit status
- It can be easily integrated with most major eCommerce sites
Next up, we have AfterPay, a provider that’s based in Sydney, Australia and was launched back in 2016. The company has 3.6 million customers in the United States alone, and it’s one that offers a number of useful features - like AfterPay Instore that can be used by physical store retailers.
According to Afterpay, they’ve found that people who use their services shop 50% more frequently than those that don’t. An impressive figure, we think you’ll agree.
It’s a platform that also:
- Lets you pay over a six-week period
- Charges no interest on purchases
- Does charge late payment fees
- Integrates with top eCommerce platforms
Again, it’s an application that doesn’t affect a person’s credit score, whether or not they’re approved for an account. This is because just a soft credit check is run when applying. You can learn more about adding Afterpay to Shopify here.
Our third BNPL application option is Affirm - a San Francisco-based payment provider created by the founder of PayPal, Mark Levchin. Launched back in 2012, it’s one of the more established options and boasts 11 million active users and an impressive 20% repeat purchase rate.
Their features include:
- Flexible payment plans to suit the customer
- Adaptive check that recommends the best plan
- No late fees or annual fees
- Zero other hidden fees
Afterpay also offers in-store payment solutions and they’re very focused on being transparent about what you’ll pay. The amount never goes above what’s stated at the outset, and this offers the kind of peace of mind that inspires people to buy.
Lastly, we have one of the most established BNPL operators on the market, Klarna. The company that was founded in Sweden in 2012, and now has 23 million active users. Klarna offers the full range of services to consumers and merchants.
Customer features offered include:
- Option to pay in four installments
- Option to pay in 30 days
- Option for monthly financing
- 0% interest charged
Also merchants can take advantage of Klarna’s marketing solutions that allow them to engage with new customers at scale. Sponsored placements, CRM campaigns and conversion-driving browser extensions are all offered to encourage customers to buy.
Boost Your Bottom Line With BNPL Applications
When you combine the ease of spreading the cost over time at 0% interest, complete transparency, and flexible options to suit everyone, it’s not hard to see why BNPL apps are so effective at driving sales. They allow purchases to be made with just a few clicks and offer instant gratification to your customers - it’s a win-win situation for everyone involved.