As a consequence of the eCommerce boom and the development of Apps for eCommerce, new payment methods are being developed to offer consumers more possibilities and comforts in their purchases. It is important to mention that in 2021, new payment methods will stand out, therefore, we want to highlight a specific model in this article. Specifically, we want to talk about what the new Buy Now, Pay Later (BNPL), Buy Now Pay Later payment method is and what its main advantages are.
What is Buy Now Pay Later-Buy Now Pay Later?
The Buy Now, Pay Later, also known by the acronym BNPL, stands for “Buy Now, Pay Later.” This payment method allows you to carry out transactions and purchase the products immediately with the possibility of making the payment later.
In addition, another important characteristic of this flexible payment is that it also offers the opportunity for the user to divide the payment of his purchase in the time he considers necessary and the platform allows it. In this way, the Buy Now, Pay Later payment method allows consumers to purchase a product immediately before making the payment and they can also pay it in the terms they want, for example, in 12 months on some platforms.
Although it will become one of the most used payment methods during this year, it is important to mention that in recent years it has already experienced great growth that has been reinforced by the pandemic produced by Covid-19.
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How and why did the Buy Now Pay Later arise?
This new payment method is created with the need for companies to adapt to user behaviors. It is important to mention that Buy Now, Pay Later arises and is carried out especially in online stores and in eCommerce since it is on these digital platforms that more purchases are made, but they also tend to face more returns.
We must bear in mind that the consumer and, especially, the digital user has evolved a lot over the years and is currently characterized by valuing the purchase process and therefore, by valuing the virtual shopping experience. In this way, they consider it important that these purchasing processes are efficient, simple, and easy where companies can adapt to the different needs of each of their clients.
As a consequence of these new needs, companies must add more value during the purchase process, and therefore, Buy Now, Pay Later, has become a great tool to precisely satisfy the different needs of users.
Advantages of BNPL
To end this article, we want to mention some of the most important advantages of implementing Buy Now, Pay Later, for both users and companies.
Increase the conversion rate
One of the most important and relevant advantages for companies is that through this payment method the conversion rate in sales is increased. The possibility of being able to purchase the product and pay for it later stimulates the purchase for users above all, of those products that involve a greater investment for consumers due to their higher price.
Improve brand image
In addition to increasing the conversion rate, it is important to also mention that this type of payment generates greater consumer confidence, thus improving the brand image. This is because consumers perceive that the company offers more possibilities to consumers and that, therefore, it cares about its clients to offer the greatest facilities, adapting to their needs.
As a consequence of all the aforementioned, we also want to emphasize that by implementing this payment method, a better relationship with users is established and, therefore, customers can be loyal to make purchases more repeatedly.
No interest is applied
As we have mentioned, this type of payment method allows, in addition to paying later, dividing the payment into a certain number of installments. It is for this reason that another advantage is that, provided that the payment is established in the period established by the user himself, no interest rate will be applied at any time for having split the payment. That is, there are no hidden fees to pay in installments.
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