As our country continues to grow digitally strong, online shopping has also boomed significantly over the past few years. The progressive development in the digital payment sector is one of the key reasons behind the success of e-commerce businesses across the country. Today, one of the digital payment products being actively used for online shopping is Buy Now Pay Later (BNPL). The product is well-liked, especially by millennials and GenZ as it allows them to get extra credit with no or minimum hassle.
The Rise of Buy Now Pay Later and Online Shopping
The COVID-19 has not only sparked a public-health crisis but has also wrecked the world economy. In the last couple of years, as wage cuts and lay-offs became common, the purchasing power notably dropped and the focus shifted completely on essentials for survival. This, indirectly, invoked a sense of money-saving amongst people and paved the way for the Pay Later apps to help people extend their budget with extra credit. Similarly, the shift from in-person shopping to online (due to the pandemic) proved to be a blessing in disguise for the e-commerce industry.
The vast availability of options, offers, and convenience offered by online shopping coupled with the Buy Now Pay Later option has worked remarkably well in favour of the millennials. And this is pretty much the reason behind the meteoric rise in the number of e-commerce customers.
How is Buy Now Pay Later Changing the E-commerce for Better?
Here are some of the benefits e-commerce businesses are extracting through Buy Now Pay Later.
- Better Customer Traction
With a huge list of fees, charges, and terms & conditions, for millennials, credit card is a tricky territory to step into. On the other hand, small ticket Pay Later credit is simple to get, convenient to use and comes with no hidden charges/fees. Also, using small-ticket BNPL credit for shopping provides an indirect assurance to millennials that they won’t end up racking too much debt on themselves. This, in turn, has increased the number of orders and the average order value for e-commerce businesses.
- Better Conversions
One of the main reasons behind customers’ drop-offs while shopping is the shock of a big chunk of their savings leaving the bank account. Such drop-offs have now significantly reduced as customers are no more hesitant to pull the shopping trigger with Buy Now Pay Later by their side. Customers get the liberty to purchase the item of their wish and pay for it later with no extra/hidden charges.
- Better User Experience
Avoiding the hassle of card PINs and OTPs, shopping with just one tap via Buy Now Pay Later allows for swift checkouts and a better user experience. With such great ease and a considerable reduction in the amount of time spent on payment gateways, e-commerce businesses with integrated BNPL option are experiencing better customer retention and loyalty.
- Better Customer Lifetime Value
With Pay Later as an option, customers are more likely to visit e-commerce platforms owing to the great convenience and flexibility they get. Also, a seamless user experience and reliable customer service further trigger their spending instinct on a regular basis, making it a win-win for the e-commerce business.
Summing up, the Buy Now Pay Later option surely is gaining traction and making waves. The number of e-commerce businesses adopting BNPL is increasing rapidly and it’s turning out great for people in Tier II & III cities as well. Such coaction of online shopping with convenient payment options is working as a catalyst in the growth of ‘Digital India’.
If you’re looking for a Pay Later product, then we recommend trying Freecharge Pay Later. It has some great features that will surely make you fall in love with it.
- Interest-free credit of up to Rs.10,000 every month
- One-tap payment across 25,000+ stores
- Zero processing fee and no hidden charges
- Convenient 30-day repayment cycle
- Instant approval
- Exclusive cashback offers on top brands across food, grocery, online shopping and other categories.
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