There’s no question that payment flexibility is trending globally. And demand is only expected to climb. Especially as more customers wake up to the benefits of greater control and transparency in how they pay and where they shop. In fact, the global buy now pay later market is expected to reach $20.40 billion by 2028.
So, if you are still on the fence as to whether you should offer buy now pay later via your online store, we’re here to change your mind. We outline 3 reasons why offering payment flexibility is a critical business decision in 2021 and beyond:
A shift away from credit
Your customers are more conscious than ever about how to pay off their expenses without incurring unexpected costs. As a result, there’s been a marked shift away from credit to debit over the last year. This has made payment flexibility a core element of consumer budgeting strategies. Consumers want to use their own money to pay over time as opposed to high accruing interest and other fees. This is driven by an increased interest in financial health.
Big ticket items are within reach
We all know that the pandemic has taken a toll on consumers. And with continued economic uncertainty, flexible payment options empower the consumer enabling them to purchase big ticket items they couldn’t otherwise afford. The Next BNPL Horizon Report found 41% of consumers interested in using BNPL for big-ticket purchases see alternative credit as less cumbersome than personal loans. “Many BNPL users see it as a viable option for boosting their spending power,” the study states.
Payment flexibility enhances the customer experience
From the customer’s perspective, it’s simple and easy to get signed up. There’s no detailed application process. Moreover, customers get more choice, as they can now afford options. In addition, flexible payments mean customers simply experience less friction in the buying journey. Payflex delivers a seamless experience enabling customers to easily make their way to checkout.
The value to retailers
Flexible payments are a proven tool to convert customers that may have otherwise walked away from a potential purchase. At Payflex, merchants have received an increase of up to 70% in average order value. They have also experienced up to an 80% repurchase rate and up to 30% increase in sales.
Flexible payments have become a powerful disruptor of traditional payment options. Moreover, it’s not showing any signs of slowing down. It’s time for retailers to sit up and take notice or risk falling behind.