Going digital is one of the adjustments many businesses are doing these days. Because of the Covid-19 pandemic, businesses, both big and small, are resorting to the World Wide Web not only to sell their products but also to reach out to bigger market.
What does this mean?
As a business owner, you need to make extend payment options to consumers to make payments easier and more convenient. Payment channels include:
- Bank transfer, either online or over-the-counter
- Credit card
- Payment centers like Bayad Center or SM Payment Center
These are convenient options especially for small purchases. What if your customer needs to buy big items from you? Ideally, credit card will suffice. But for millions of Filipinos who don’t have access to credit cards, purchasing items they need will be limited.
How can you provide solution as a business owner? Add Buy Now, Pay Later facility in your list of payment options.
What is Buy Now, Pay Later?
Also known as BNPL, this payment scheme allows consumers to shop for their needs and pay for their purchases later, usually on installment basis. You can also enjoy interest-free period, usually two months, starting from the day of purchase.
The BNPL payment scheme has been around for quite sometime. Credit cards are the best example of this since consumers can already buy items and pay for them at a later time or on installment. Unfortunately and because of the required documents, not everyone can get a credit card. This could limit someone’s spending power, especially when they need to purchase big items.
As a business owner, how can you avoid this? Consider adding BNPL payment option in your list of available payment channels.
Why incorporate BNPL as part of your payment channels?
- Reach out to younger consumers – E-commerce is a boom nowadays. Because of the pandemic, people are more scared to go out and prefer shopping for the items they need online. Millennials and Generation Z are heavy Internet users and are more likely to see your brand online. They are also more open to try different payment schemes that will make shopping easier and more convenient. Through Buy Now, Pay Later, you will be able to provide a new payment scheme that allows them to enjoy shopping and pay for their purchases later.
- Helps you target unbanked customers – Unfortunately, not everyone can have a credit card. Banks have stringent requirements such as bank account to ensure that credit card holders are able to pay. In case of large purchases, owning a credit card could come in handy. If you offer BNPL as part of your payment options, then you could also target those who don’t have a credit card and encourage them to buy the items they need. This will give them more buying power as well.
- More buying power for consumers – Not everyone has the capacity to buy whatever they want anytime they want. Unfortunately, there are cases when someone needs to purchase big items immediately such as new appliance or laptop for online schooling but with limited cash on hand. Through Buy Now, Pay Later, merchants are able to purchase items they need and pay for those items later. This means you will notice an increase in your customer’s basket size since they are more capable of spending more.
- Offers flexible payment – BNPL allows consumers to shop for the items they need and pay for them on bi-monthly or monthly basis. This means customers can stretch payment and give them a chance to realign their budget every month.
- BNPL is a booming market – Recent world events forced people to adjust and change their buying behavior. In fact, online transactions have increased since then. This includes providing alternative yet convenient payment solutions such as Buy Now, Pay Later. It gives consumers an opportunity to overcome their financial situation, especially when urgent purchases must be made.
That being said, BillEase is ready to accommodate your need for BNPL platform and help you grow your online market.
- No set up fees
- No minimum fees
- Higher loan credit limit
- 2.5 percent interest for every successful transaction
- Daily disbursement through automated bank transfer
- Down payment option, especially for purchases beyond the customer’s credit limit, is offered
More importantly, BillEase supports all merchants, regardless if you’re big or small, no matter what type of business you’re in. Call us and request for a demo, and be one of our merchants today.