In the face of the global economic collapse that has disrupted the lives of millions worldwide, the desire for a better quality of life and access to luxury goods remains undiminished. In fact, the current financial instability makes it challenging for individuals to maintain their desired lifestyle. During these difficult times, installment payment plans, also known as buy now, pay later (BPNL), emerged as a lifeline offering a practical solution for customers and businesses.
It is essential to recognize that BPNL is not a short-term fix but a long-term solution that influences the e-commerce landscape. By implementing this with the installment payment plugin, online stores embrace a forward-thinking approach and simplify shopping for everyone.
So, today, in this blog, we will look for the perks any online store can achieve with this payment method.
Let’s dig in!
Understanding Installment Payment Plan in E-commerce
Def: A mode of payment that lets customers shop and divide the cost over multiple installments instead of paying at the time of purchase. It gives payment independence in fixed intervals like weekly or monthly, making high-value items more affordable and accessible.
Importance in E-commerce – This new payment trend reshapes e-commerce payment dynamics while catering to customers’ financial needs. It proved the best solution to address budget limitations, allowing individuals to shop for desired products without enduring a financial load. In a nutshell, we can say that BNPL opens the horizon of new opportunities for customers and businesses in e-commerce.
Benefits of Introducing Installment Payment Plans in an Online Store
Meeting customer demands is the key to success, and installment payment plans can be a major option to ensure it. To know more about how this customer-centric approach influences e-commerce dynamics, let’s discover its perks.
Ease of Payment
The topmost perk of using installment payment plans is ease of payment. With it customers don’t need to worry about large upfront payment of their selected products. Instead, they can enjoy the convenience of paying in smaller installments, making the budget management effective. Ultimately, offering this ease of payment ensures excellent customer experience and strengthens your store’s position in a competitive market.
Appeal Budget Shoppers
The BNPL approach acts as a magnet for customers seeking affordable purchases. Breaking down the cost into manageable chunks attracts a broad audience, including students, young professionals, and individuals with tight financial status. It lets them purchase whatever they want without burdening their budget.
Decrease Credit Card Dependency
Offering a BNPL payment method, online stores significantly minimize the credit card dependency among customers. When they have the option to pay in installments, shoppers automatically avoid relying heavily on credit cards for large purchases. It not only helps in reducing financial stress but also encourages responsible spending and financial well-being.
Boost Customer Loyalty
Winning and boosting customer loyalty is another perk online stores can achieve by offering a BNPL payment approach. When customers notice that you are providing flexible ways to pay for purchases, they are more likely to return in the future. Also, the positive shopping experience fosters a sense of trust and appreciation while strengthening the business and customer bond. Consequently, these loyal customers become brand advocates and contribute to business growth.
Increase Sales & Revenue
Diverse payment methods directly accelerate sales and revenue. When customers know they can pay you later, a larger audience will reach out to such businesses, including those who may have been avoiding purchase because of the original cost. This expanded customer base resulted in a higher conversion rate and larger average order value. Moreover, easy accessibility stimulates impulse purchases and promotes repeat business, significantly boosting overall sales and revenue.
Access to High-Value Item
Just imagine you are offering a high-value item, but its purchasing value is very low; the results are clear that such things can cause a loss in your business. But try to change the scenario and start selling high-value items on an installment payment plan, and you will see a clear difference. As a manageable installment cost, let customers purchase expensive commodities without breaking the bank and improve the average order value of high-value products in your store.
Seasonal & Promotional Boosts
During Peak shopping seasons or special promotions, BNPL payment methods are a compelling incentive for consumers to make larger purchases without cost pressures. This will also help to increase the number of shoppers, resulting in higher sales volume and greater revenue generation during the strategic period.
Reducing Cart Abandonment
One of the main problems that almost every online store owner faces is a high cart abandonment rate. Customers often abandon carts because of high costs or unexpected expenses, but when they notice a business is offering an installment option, they are more likely to complete the purchase. So, we can say that implementing this approach can significantly benefit businesses regarding cart abandonment rate reduction.
Quick Way to Implement “Buy Now, Pay Later” Payment Plan
After reading all the perks, consider implementing an installment payment plan on your online store. Here are the five easy steps:
Conduct comprehensive research to understand the demand and trends for BNPL payment plans. Evaluate competitor strategies and customer preferences to select the most suitable method for your online store.
Choose the Best BNPL Provider
Before selecting the installment payment plugin, don’t forget to analyze it on different factors like cost, interest rates, integration, and customer support. Pick the reputable provider that aligns best with your business needs.
Set Up BNPL Payment Method
Complete the necessary documentation required by the chosen provider. Set up your account and ensure compliance with terms and conditions.
Integrate with Your Online Store
Integrate selected BNPL payment methods into your online store. This can be done using plugins or APIs provided by the provider. Also, ensure smooth functioning by testing before going live.
Promote Installment Payment Plans to Customers
Launch a marketing campaign to advertise the installment payment plans availability on your online store. Use social media, email marketing, pop-ups, and banners to inform customers about easy payment plans.
In conclusion, implementing installment payment plans on your online store offers plenty of benefits that can revolutionize the e-commerce business. From attracting every type of customer to expanding the customer base to increasing sales and fostering customer loyalty, these plans set the stage for consistent growth. So, let this influencing strategy position your store at the forefront of the industry.