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Top Buy Now Pay Later Tools for Ecommerce

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Financing has been such a popular option taken up by consumers whenever there is financial instability, emergencies, buying new furniture, and so on. People are now seen as consumers, marketers try to create a demand whenever there is low demand and so goes for needs. The mass consumerism culture has reached its peak as anything can become a vessel for commodity. Whether it is ethically justifiable or not, depends on the reaction of the consumers. It is a topic of hot debate, whether everything can be commodified and the term aestheticization is commonly used to determine the status of an individual. For example—the brand image of a product is. Dry popular, and the individual using the product is instantly seen as a wealthy sophisticated figure of society.

With this approach, there have been many brands establishing luxury products and brands to tempt customers who can afford such items. The same cannot be said for the rest of the population, the concept of financing and budgeting applies the most for these categories of consumers. With the fast-paced lifestyle of the consumer and the provider, a certain amount of money is spent every day on average. Most products on the market are made for making sales and company awareness; however, not all people spend the same way as the others.

Here’s when the buy now pays later finance option opened up, in this process, you get to work your way around paying in full, instead customers can pay in parts of instalments. This proves to be a great way to keep one’s savings margin stable, can be a great opportunity to improve your credit score balance and record. It is used for financing furniture, mattresses, and other household or lifestyle items that are necessities especially when you need to shift to a new location.

Buy Now, Pay Later tool —What is it?

Since younger customers are looking for a more financial option while shopping for goods and services, the BNPL option suits their needs. Online stores have also begun customer-friendly options due to the customer’s demands and needs. This option has now become an integrated part of most e-commerce platforms. Many customers prefer this option because the other options would need them to pay in interest or have the risk of missing payment deadlines as seen in credit card purchases.

The Function Of BNPL

The BNPL solution is referred to as a third-party whose role is to offer a scalable solution when it comes to instant payment. This includes without any hidden fees and often with zero interest. The types of payment options vary as they depend on the customer’s needs. The BNPL solution benefits not only the customer but also the store owners, as paying upfront usually leads to payment issues and credit risks.

The BNPL tool is especially useful when customers make large and small purchases— since the number of products they buy varies.

When Is the Right Time to Invest In BNPL Tool?

Any DTC or Direct to Consumer business has access to buy now pay later tools, however, if your store has a low average order value such as $30 then it is not quite suitable. You can instead focus on improving the rate of average order value. Businesses with a higher average order value are seen to have higher benefits when they use a buy now pay later tool. Customers who are not able to pay upfront can now pay in parts through the BNPL option. However, for larger ticket items the chances of fraudulent purchases are subsequently higher.

These options may not be the best fit for businesses with slim margins. It hampers the overall profit gained and the additional cost of goods sold along with the cost of buying s BNPL tool may pose a serious risk. The BNPL solution is well adopted by younger generations, however, it is not as much used by the older generations so it’s good to keep in mind the demographics of your target audience before deciding a purchase on BNPL tools.

The Top BNPL Tools

Some of the most common payment options offered during a Buy now, pay later purchase are in installments —typically in quarterly payments, pay in 30 days, financing —which is the longest option that takes up to 6 to 36 months! These options all differ and work well if your margins are well analyzed as well as with the consideration of the behavior exhibited by your target audience. Four major tools entered the e-commerce system seamlessly,

Affirm

This BNPL tool offers customers scalable payment options with no hidden fees to pay. On the other hand, it adds up to 39% interest for big-ticket purchases.

Its features include,
  • Financial option of up to 36 months
  • Omnichannel integration where there are multiple channels of marketing and product distribution such as an online store, in-store, and telesales
  • It has access to a large network of influence which in turn helps in building store awareness
  • Its current hosts are big online companies such as Shopify, WooCommerce, BigCommerce, and more website building stores
It’s Pricing
  • Users just need to request a demo for acquiring the pricing

Klarna

Here, Klarna offers their customers a 4-part payment which is also free of interest, it has no impact on the customer’s credit. This tool is used to pay businesses upfront and in-full payments. The customers are given two options for financing,

  • They can either pay in 30 days or financing of 6 to 36 months
  • For large ticket purchases, the option of financing is much preferred. For example, furniture or mattress
Its features include,
  • It has an on-site. Messaging feature can be seen on the product page and gives access to the users about the payment information before their checkout. They can either abandon or delete items from their shopping cart
  • For a more fast checkout, the express button for checkout is included for mobile users.
  • Payment options such as contactless payment, which is a form of flexible payment
  • Having ore-filled details, payment options already selected and ready for returning customers
  • It has hosted such as Shopify, Magento, 3D cart, and so on
  • It has access to a network of influence their store awareness
It’s Pricing
  • The setup is free of charge whereas the variable fee is up to 5.99%

Afterpay

It offers customers the option of 4 payments —where customers can make 1 payment every two weeks. There is zero interest along with nil additional charges, so long as the payment is done on time.

Its features include,
  • 4 installments option
  • It has access to a network of influence their store awareness
It’s Pricing
  • You can request a demo for the pricing

Sezzle

It is suitable after the purchase of large ticket items, it has zero interest and the tool does not issue any credit reports. Assumes full credit risk even when the customer does not reach the time of payment.

Its features include,
  • 4 installments payment option
  • Receive upfront payments quickly
  • It has access to a network of influence their store awareness
  • It has integrated with Shopify, BigCommerce, Six and so much more
It’s Pricing
  • You can request a demo for the pricing