Providing a Buy Now, Pay Later (BNPL) option to your clients may help with boosting conversion 20-30% and average cart sizes 30-50%, according to an RBC Capital report.
As mentioned in a blog post by Affirm (NASDAQ: AFRM), these benefits could make a significant difference to any digital commerce retailer—including SMBs.
Major retailers sometimes make headlines when they begin supporting a BNPL solution at their checkouts, as Amazon and Walmart when they teamed up with Affirm. However, it’s important to know that over 102,000 other businesses also provide pay-over-time options with Affirm, including artisans, niche clothiers, tour operators, among others.
If you’re thinking about providing BNPL to clients, then you may be interested in knowing that giving consumers this option can convince them to buy, “resulting in incremental conversion and sales gains.”
The update from Affirm further noted that in a study of Affirm users, 29% said they would “not have completed the purchase if Affirm wasn’t available. And nearly half (45%) would have delayed the purchase.”
And don’t forget the potential gains “in conversion and average cart sizes. ONDO, a socks retailer on the Shopify e-commerce platform, saw a 28% boost in conversion after offering flexible payments with Shop Pay Installments (SPI).”
Many businesses see “similar results adding BNPL at checkout,” the team at Affirm wrote in a blog post. That’s because shoppers “welcome this flexibility in managing their cash flow, and they will often add more items or say yes to upgrades or bundles.”
Affirm’s blog also mentioned that offering a pay-over-time option to shoppers is “a way to give them what they want: more choice in how they pay for purchases.”
Affirm also noted that flexibility is “at the core of buy now, pay later.” And varying the BNPL options you offer to shoppers can “attract many different customers.”
Some shoppers “prefer the option of splitting the purchase price into 4 interest-free payments made every 2 weeks,” Affirm noted while adding that others may “prefer to make monthly payments spread out over a longer term, with or without interest.”
According to Affirm, more choice is also “good for business: E-commerce sites on the Wix platform with 3 or more payment options have 39% higher sales revenue.”
Affirm claims that it can “accommodate multiple payment preferences in one seamless solution: Adaptive Checkout.”
You can give shoppers the flexibility to “pay the way they want, at more price points,” the company explained while noting that merchants who implemented this proprietary technology from Affirm “saw average gains in customer approvals (+22%), conversion rate (+26%) and Affirm sales volume (+20%).”
The Fintech firm also mentioned that with Affirm, you may “cut-and-paste logos and other marketing assets from our online toolkit.”
The company also noted that offering BNPL options to your customers is a simple process. You can “add it as a plug-in from your existing e-commerce or payments platform like Shopify, Wix, or Adyen.” Or you can do “a direct tech integration to your site with a BNPL provider like Affirm,” the company explained.
Affirm clarified that you don’t have to “worry about collecting customers’ payments over long periods of time.” Nor do you “shoulder the risk of them defaulting on their payment plans.”
For more details on this update, check here.