If you were to list the top tips for selling high-ticket items, Buy Now, Pay Later (BNPL) would be right at the forefront. This innovative purchasing method is quickly becoming one of the fastest-growing ways to complete purchases, particularly on expensive items.
Learn how to leverage BNPL to increase convenience with reduced pain and friction so that you can earn more without added risk.
BNPL explained
BNPL is a down payment or prepayment allowing the purchase price to be divided into more manageable chunks, thereby mitigating the pain of high-value purchases.
Customers shopping for high-end items are often brought up short, struggling to balance their desire to take the item of their dreams home against the binds of financial constraints.
When a merchant like you configures your point of sale system to accept BNPL payments through your merchant provider, you can help them to resolve this dilemma in a way that benefits everyone.
The concept of BNPL is simple. A client can select the merchandise they want and put down a small down payment immediately.
At the time of purchase, they set up a finance agreement in which the remaining payments are divided into fixed, interest-free installments that can be paid back over time. These recurring payment contracts are usually processed through BNPL services such as Affirm, Klarna, and Afterpay.
Meanwhile, you, the merchant, receive the full payment amount, minus any fees, just as you would with a standard credit card payment.
The burden of underwriting, managing installments, and collecting payments falls firmly on the shoulders of the BNPL provider, leaving you free to do what you do best: run your business.
Advantages of BNPL
Integrating BNPL into your operations has several benefits. They include upfront payments, lower fraud risk, expanded customer reach, elevated client experience, and boosted conversion rates.
Today’s customers are demanding secure, fast, and streamlined checkout experiences that offer maximum flexibility. BNPL checks all of these boxes while offering a number of other benefits as well.
Upfront payments and lower fraud risk
First, you, the merchant, get your payment upfront, receiving protection from fraud at the same time. This is because all of the liability is shifted to the BNPL service provider, shielding your business from the risk of chargebacks and other types of data breaches.
Expanded customer reach
Second, your business can reach a wider swath of customers, including those who want to buy high-value merchandise, and younger consumers who might not even have a traditional credit card.
Elevated client experience
Third, the financing process is streamlined and seamless, with customers only needing to complete a soft credit check. With these providers, there are no fees, separate applications, or additional processing time.
Repayment terms are easy to understand, and returning customers find that their checkout experience is even faster.
Increased conversion rates
Fourth, the BNPL experience reduces sticker shock and buyer’s remorse. For instance, submitting four interest-free payments over four months is much less intimidating than the prospect of paying all at once.
At a time of economic uncertainty, flexible alternative purchasing options such as BNPL are gaining more popularity than ever.
With its streamlined checkout, financing, and manageable payment installments, BNPL is giving consumers of high-value items a safe, legitimate, and effective way to buy the goods they need.
As long as the buyer maintains a consistent repayment schedule in keeping with the agreement they signed, their experience will be flawless from start to finish.
At the same time, retailers like you who want to boost the conversion rates of their high-value merchandise can now embrace a widely accepted and extremely effective payment method that benefits everyone involved.
