Over the recent years, the BNPL (buy now, pay later) concept has turned into a trend as each industry and company try to customise it as their own. It is interesting to watch how companies are embracing this concept to attract new customers. Our marketing team are here to provide some insight after monitoring the change.

The new wave of change has carved out a unique gap in the financial sector, that allows companies to get down to their consumer’s level of needs and wants. As the name implies, buy now, pay later allows the shopper to indulge in a new purchase without spending money at the time of sale. The whole concept increases impulse buys and reduces inventory to drive additional sales.

The trend has been criticised and rejoiced. Critics compare the concept to that of a loan with good PR and Marketing strategies. Whilst those in favour, see this category as a better way for people to manage their budgets. Various industries have tapped into this market; from car sellers to electronics and fashion retailers, but with the rise of the recent pandemic that hit us earlier this year, it is creating opportunities for individuals who are greatly affected by it.

So why are retailers jumping on the buy now pay later wagon?

Improved customer lifetime value

Loyal customers will shop on an ongoing basis, regardless of the payment terms. They tend to shop their favourites, but this payment category may influence new purchases.

Shoppers can decide to not follow through with the purchase once they view the total amount in their cart. A BNPL payment method can increase the odds for the customers to spend. 31% of shoppers said they would not have purchased without the ability to pay later.

Increased conversions

Many shoppers are excited to make new purchases, but second guess it the moment they see the final price, which leads to shopping cart abandonment. The BNPL concept is similar to credit cards, but the psychology behind paying later makes a buyer more willing. 48% of consumers would allow BNP availability to influence their purchasing decisions.

Better customer experience

Creating positive customer experiences builds loyalty and encourages repeat business. Offering customers more flexible payment methods will increase loyalty and sales. 6% of carts are abandoned due to payment methods.

The bottom line in the buy now, pay later concept is doing an excellent job of positioning around consumer wants and needs. Listening to customers and creating strategies targeted to their needs and wants will place your company in the path to success.

Why GCS Malta?

The marketing team at GCS Malta create tailor-made strategies and content to each client to take their campaign to the next level, exceed expectations and produce high-quality work with a difference. Adopting the buy now, pay later scheme? Contact us today for more information on how we can take your campaign to the next level.

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