Fact: e-commerce industry is on the rise. Since the start of 2019, more and more Filipinos are resorting to online shopping. The number steadily increased as the country – and the entire world – was hit by the Covid-19 pandemic, thereby prompting people to stay at home and prevent the spread of the virus.
As a form of coping, a lot of people, especially the younger generation, went to the World Wide Web to satisfy their needs. Various e-commerce websites popped up while the current ones improved their online platforms for better and seamless shopping experience.
Here’s the thing: not everyone has cash within their disposal. Even if they do, this is allotted to something more important like food and bills.
This is where Buy Now, Pay Later or BNPL scheme comes in. In simplest form, this means allowing installment payment for the purchases made. Payments are also distributed equally for a given period.
Here are reasons why merchants should offer BNPL in e-commerce websites:
Not Everyone Has A Credit Card
Unfortunately, not all customers could qualify for a credit card. If you need to buy something pricey like a laptop or tablet, having a credit card allows you to make that purchase.
This is what BNPL aims to address. Through this scheme, people are now capable of buying their essentials and pay for these later on. You can also opt for an installment plan where payments will be divided into equal amortizations, similar to what credit card companies offer.
As a merchant, BNPL scheme will make it easier and more convenient for customers to shop for their needs.
Gives Customers Various Payment Options
There are several ways for consumers to pay for their items:
- Online bank transfer
- Credit card
- Through remittance centers
It turns out not all e-commerce sites offer BNPL, which could be helpful for those who are unbanked. This scheme gives customers not just additional but also flexible payment channels that they can afford. This could mean higher sales as well.
More Affordable To Customers
The truth is even without the pandemic, not everyone can pay P50k upfront. Since not everyone has a credit card, the BNPL scheme makes shopping affordable to many.
That’s not all. Customers are given time to start the payment. In BillEase’s case, installment plan won’t immediately start the following day. The start of payment will commence at least two weeks after the purchase, thereby giving customers ample time to save up for it.
Reduces Abandoned Carts
Many shoppers will “add to cart” their favorite items. Still, the reality is not everyone will buy for the simplest reason: they might need the money in the future.
This is the reason why many have abandoned carts or purchases that were not consummated. When customers see the total amount of their purchases, they won’t push through with the order.
Having a BNPL scheme in your e-commerce website reduces that because people have options that they can afford. More importantly, you were able to convert leads into sales, which could result to higher profit as well.
Younger Consumers Prefer This Scheme
Most people who resort to online shopping are those who belong in the 20s to 35s group. Since not everyone has access to a credit card, the BNPL scheme makes shopping convenient and easier for them. They don’t have to go out and go to the bank just to pay for their purchases.
Don’t underestimate this group of buyers. They are more willing to embrace the online platform, which means as a merchant, you should be able to provide several options to make it easier for them to buy what they need. Consequently, it gives them their desire for instant gratification, even if it means paying for those items later on.
Still, the Buy Now, Pay Later scheme does NOT encourage impulsive buying. This is simply giving your consumers additional payment options that will make shopping easier and more convenient for them.
BillEase partnered with several merchants like Lazada, Kimstore, Flowerstore.ph, and Shopee to provide installment payment options to consumers. This gives customers more flexible payment options. For more information about partnership with BillEase, email us at [email protected]