The global pandemic has made mobile transactions with a trajectory of 80% and going to reach $50B in 2021. Due to an increase in sales, this sector continues to projected high in the coming years too. So the industry of e-commerce has seen growth after the surge of Covid.
In recent years, we have seen that consumer buying and selling habits have increased with the huge plunge. Ecommerce industry solutions have offered great flexibility to the customers without any limitation. Under this scenario, buy now pay later is the new trend.
This advantage to the consumer, where they can buy the more expensive item in installments on a monthly to yearly basis. People can easily plan out their point-of-sale loans lending without any worry about the payments under the fixed time.
In aggregation to this, millions of shoppers tied up with BNPL services to give better finance options to the customers and lift their business to a higher degree.
This article makes you more enlightened about the buy now pay later services and its factors, how it works, how it benefits the consumers and the merchants, and features to keep in mind for the development.
Summary for Quick Glance
Accessible, no-cost EMIs and transparent; BNPL is the wholesome service heading for the future of a great shopping experience. Few of the companies worldwide and in India are reciprocating their market and services with the BNPL facilities to grant a feasible payment option and a brilliant alternative to credit cards.
Under this blog, we will discuss with you the BNPL services, working, features, and how it eventually will be one of the best options to attract more customers for purchasing an item. This facility has offered to you the repayment tenure, discards the irrespective fuss of credit cards.
So let’s remain with us.
For a long time, we have been benefiting ourselves with our favorite source of credit money. But with the hindrance crew of the information, this option would not be the only option we have. Credit cards have a lot of trouble with interest charges, higher rates of the processing fees, input upfront personal information before any credits, etc. all are the pitfalls.
Coming to the stats, the figures have fallen in recent years with a considerable amount in the credit cards up to 4.1% in 2019.
Here comes the role of the buy now pay later option. It facilitates huge alternatives for the user to pick from. These solutions are adhering with the maximum benefit to the customers with the point of sale loan BNPL, building a strong relationship with them, and escalating them to make purchases.
In the UK market, one out of every three e-commerce brands is likely to move for BNPL options. Why? Simple. Buy now pay later, facilitates the users to pay only a small amount of money or no money at the purchase, and within the appropriate time, users can choose for the payments. Maybe the no-charge products end the traditional credit cards.
The rise in the customer market yields for online payments across the world boosts the market of the BNPL. Slowly and steadily, this model digs its head and footprints to acquire more potential customers.
Buy-Now-Pay-Later, as the name implies, is the solution that confronts the users to buy anything within a single roof without any worry of the price. How could it be possible? Have you ever wondered?
Yes, this factual model, begins the rise in the no-fee purchase or pay in small installments. This is the phase we all move towards the automated solutions for the payments with our comforts. Yes, technology brings us to a place where everything could be possible- just a tap is all we need.
Let’s understand the working of the model with the best BNPL app present today; Klarna.
Klarna gives its user the option to choose from any of the products, add to buy, and forget to pay. Yes, you heard it right. This is how the model works.
At the time when a user comes to the platform, make sure that he would have to wait for a long time. The quick sign-up procedure makes everything speedy for him. A fast loan procurement process would be much delighted by the users and help you to grow. Users find themselves in trouble if they engage in the KYC steps.
To surpass faster payments, you should provide multiple options to the customers. Bank transfers, debit or credit cards, or UPI methods could be more convenient for the consumers.
BNPL payment method offers small fees for the overpayment process that is performed at the user end after the purchase of the product.
Using the BNPL service, the whole amount is broken down into easy installments without any charge up to 3-4 installments. While for the large installment time, BNPL charges a small number of fees.
Depending upon the type of BNPL service provider, they offer loans on a weekly or monthly basis, while some have extended it for a yearly basis.
This aids the customers to pay without any swipe of the card.
Who is your target audience, this is the first perspective you need to consider. Keenly understand the market and any gaps, then implement where you are lacking. Why customers are going through the early abandonment of carts and how you can serve them well.
Research on the minute details, how much time customers will take to buy the product.
This is the next important step for the development of the app. The best model will lay down your app productivity to another level. SDLC life cycle is the right methodology for your business.
Best API implementation is very important to integrate within the app. BNPL is a very fusion prof model derived from the list of APIs like PaaS & SDKs in your project.
The omnichannel method has integrated multiple payment methods for the customers to give a great customer experience. Merchants can give NFC-enabled terminals for customers’ quick payments.
Once you have identified the needs of customer experience, it’s easy for you to break out the stages into different development phases. Choose unique models for every requirement of the product. Establish an MVP for redefining the initial structure of the app. Take feedback in return from the customers.
Development of the BNPL app can be done with several factors. You can hire the outsource company in case you have any financial limits, or hire a freelancer who has enough experience with the technologies required for the development or you can take the help of your in-house team.
Everything depends on the cost and the time. Whatever way might be superlative for you, go with that.
Testing may raise the final cost of the mobile app development. Prevails testing at the various levels to ensure the maximum quality and productivity of the app.
If your app could not match with the high level of protection, it could be a waste of time. Try to add as much layer of security, make it unbreakable for the hacker to break it.
Set data encryption to avoid any failure at the end of the product build.
Online and secured transactions are a very crucial part of the app. The government has different rules and regulations in finance to improve the security alliance in the existing market. The app developers must recheck twice that the data is placed properly under the set policies.
It’s not a great way to discard the customer’s choices after their purchases. After the successful development of the app, it is always a good way to engage your customers on your platform. Open your feedback channel, fetch them a scheduled weekly mail to validate your presence after the purchase.
For the retailer, place your store in the BNPL directories to get a large amount of traffic from the existing resources.
Over the years, customers limit their purchases for many reasons. They have credit cards with high-interest rates, pulling them back for any transaction. But with the BNPL, the market has seen a positive impact on the conversion rates.
This option encourages 20-30% of the buying customers.
In the highly competitive environment nearby, customers have a high sense of options to look into, while businesses can’t stick onto outdated solutions to lure the people. To maintain the potency of customers on the platform, add some rewards or coupons, discounts, and another scheme to your app.
Customers don’t want to dig into the vicious circle of buying and returning things. They get themselves irritated once they have found the platform complex for returns.
Customers are likely to return their purchases when they find strict return policies. However, the cost sinking affects the gain, but it is one of the essential tools for the driving business.
The customer value is driven by the fact that how many customers it attracts. The more options you provide to the customer, henceforth the more trust they show to you.
Bigcommerce adopted Klarna’s BNPL option to execute their belongings. Stormy Kromer and Revelry - big brands bring to their customers the BNPL option.
Klarna, a leading online store, offers shops now pay later and you can split your payments up to 4 interest-free installments from any device, so you have a choice to buy your choice of things and pay later.
This brand consists of a wide variety of well-curated options for the user to look from. You can pick any of the products from the collection, whether it belongs to fashion, beauty, or gadgets.
You may track your orders, save your exclusive money, find the deal, and tap to get the maximum discounts. So wait, not anymore, go get your BNPL option to crave anything.
Slowly and steadily, the e-commerce market has seen a whopping figure towards online shopping, and this motivates new developers to come up with great mobile solutions and experiences.
Most companies are looking for outsourcing companies to offer BNPL solutions to the market. Why? The reasons are simple, BNPL is a convenient and fast way to serve instant loans to consumers. If you too are planning to have your app that has to follow transparent security alliances, rules and regulations, and most important conventions for the users, you should hire a skilled team that fits all of the terminologies.