Why You Should Offer a ‘Buy Now Pay Later’ Payment Method

Online shopping in home

Today’s consumers can obtain what they want when they want it thanks to digital technology. They have more options and avenues to pursue them than they had in the past.


Consumer expectations have altered as a result of the enlarged option landscape, resulting in a new category of modern buyers: ones who expect to buy big-ticket products without having to worry about credit card interest rates or fees.


Consumers want to be happy not only with what they buy and how much they pay but also with how they pay.


Buy Now Pay Later

Businesses must identify methods than can help them gain an edge over their competitors in the ever-crowded marketplace. Buy Now Pay Later (BNPL) can assist businesses in Malaysia in modernising payment procedures by allowing consumers to pay at both online or physical point-of-sale in a flexible and controlled manner.

 

By providing consumers with a more convenient, transparent and budget-friendly way to pay for large-ticket purchases, the pay later option in Malaysia can help meet consumers’ expectations for different payment options.

 

Before we get into why you should offer Buy Now Pay Later payment option in your business, let’s take a look at how BNPL can simplify the consumers’ journey, assist businesses to increase sales conversion and ultimately improve the consumers’ experience:

a. Greater Spending Power

According to pymnts.com, 87& of today’s consumers aged 22 to 44 WANT the option of paying for significant goods in monthly instalments.

 

A BNPL increases a shopper’s buying power by allowing them to purchase a large-ticket item and pay it off over time with low, fixed monthly payments rather than using a credit card or managing several loans. This leads to increased consumer satisfaction as well as immediate sales and average order values for retailers.

b. Greater Control and Transparency

Flexible BNPLs provide a reusable or virtual line of credit that can be utilised multiple times for new purchases while producing no friction or delay in the purchasing process.

 

Consumers will find it easier to utilise the BNPL serice, which will lead to higher consumer retention rate as they gain the confidence and trust in sellers to come back and make more large-ticket transactions.

c. An Omnichannel Solution

Flexible BNPLs provide a reusable or virtual line of credit that can be utilised multiple times for new purchases while producing no friction or delay in the purchasing process.

 

 

Consumers will find it easier to utilise the BNPL serice, which will lead to higher consumer retention rate as they gain the confidence and trust in sellers to come back and make more large-ticket transactions.

 

d. Simplicity and Sophistication

Consumers today want payment methods that are both straightforward and simple, as well as comprehensive solutions. As a potential alternative to traditional payment methods, BNPL provides a quick, simple and seamless payment experience.

 

The right BNPL solution can be simply incorporated into existing retail systems or adapted for more complicated systems on the retailer’s side.

omni channel solution

Benefits of Buy Now, Pay Later for Retailers or Merchants

Now, let’s dive into some of the benefits that the BNPL solution can offer to both online and in-store retailers or merchants.

 

1. You’re Paid In Full Upfront

One of the most appealing factors of offering buy now pay later is that you are paid in full upfront. You won’t have to worry about chasing late payments because your solution provider will take on the credit risks.

increase conversion

2. It Increases Your Conversion Rate

People are more likely to buy something if they can take it home with them right away. Consumers can do just that with BNPL, which will increase your chances of converting your visitors into consumers who make actual purchases. According to industry research, merchants who use the service see a 20-30% rise in conversion rates.

3. It Boosts Your Average Transaction Value

When allowed to buy now and pay later, consumers are more likely to buy more items and spend more money. In addition to experiencing a 68% rise in basket size, many merchants have seen a 25% increase in transaction values as a result of BNPL.

4. It Grows Your Customer Base

By integrating BNPL payment option into your business, you can make purchases a lot more convenient and affordable for consumers. As the BNPL service can now be offered to not just credit card holders but debit card holders as well, this enables you to reach larger consumer base.

 

5. It Increases Repeat Purchasers

Repeat purchases are more common among shoppers. Consumers who pay later have increased their purchase frequency by 20%, and some by 100% within a year, according to studies.

 

In a Nutshell

In line with the shift in purchasing and shopping behaviours caused by the Covid-19 pandemic and the extension of the Movement Control Order (MCO), it is realistic to assume that BNPL will continue to grow in popularity among the consumers that are looking for alternative ways to make the most of their hard-earned Ringgit. Therefore, it would be beneficial to grab hold of the early move advantage by using BNPL.

 

Buy now pay later in Malaysia not only gives your consumers more options at checkout, but it also leads to greater traffic, larger transaction values and a higher bottom line.