[et_pb_section fb_built=”1″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
In this comprehensive round-up, we will take a look at critical factors like interest rates, merchant fees, purchase limits, and more.\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” text_font=”||||||||” global_colors_info=”{}”]<\/p>\n What is Buy Now, Pay Later?<\/a><\/p>\n What are the Benefits of BNPL for Merchants?<\/a><\/p>\n Affirm (Best for Higher Priced Goods)<\/a><\/p>\n Afterpay (Best for No Credit Check)<\/a><\/p>\n Klarna (Best for Flexible Payments)<\/a><\/p>\n PayPal Pay-in-4 and Pay Monthly (Best for Trustworthiness)<\/a><\/p>\n Sezzle (Best for Incentive)<\/a><\/p>\n Zip (Best for Availability)<\/a><\/p>\n Are There Any Downsides to Buy Now, Pay Later?<\/a><\/p>\n [\/et_pb_text][et_pb_text module_id=”BNPL” _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Buy Now, Pay Later (BNPL) is a payment option that has become one of the go-to methods for shoppers over the last few years. These plans are akin to a modern layaway plan: consumers can buy online or in-store, then split the cost up into affordable payments that span several weeks or months. However, unlike layaway, where the retailer holds the item until all payments have been made, BNPL hands the product over to the consumer right then and there.\u00a0<\/span><\/p>\n Numerous BNPL companies, such as Affirm, Afterpay, and Klarna, have emerged over the last few years, to the point where BNPL has become ubiquitous in the checkout process: <\/span>More than 56%<\/span><\/a> of American adults used a BNPL service in 2021. Shoppers are making larger luxury purchases\u2013Apple products, designer clothing, gaming consoles, etc.\u2013now that there are minimal risks for them.<\/span><\/p>\n [\/et_pb_text][et_pb_text module_id=”benefits” _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n A seamless and smooth checkout process is critical for any eCommerce business. A complicated or rigid checkout experience is one of the last sales obstacles stopping customers from completing their purchases. According to a <\/span>survey<\/span><\/a> done by Klarna of 2,000 consumers and 250 retailers, 36% of consumers say flexible payment options would encourage them to shop again with a brand and 27% said flexible payment options would make them more likely to spend more with a brand. As a merchant, providing your customers with multiple avenues for purchases gives them a sense of ease and flexibility.<\/span><\/p>\n So why partner with a BNPL company? For merchants:<\/span><\/p>\n With c<\/span>redit card interest rates<\/span>\u00a0on the rise,\u00a0<\/span>shoppers are looking for alternative ways to pay, and BNPL models are an increasingly attractive option for those looking for credit\u00a0<\/span>given that many BNPL providers do not charge interest or late fees. BNPL also\u00a0<\/span>provides the<\/span> instant gratification that is sought after by younger millennials and gen-z consumers. This payment model allows them to have the things they want now while drawing out payments over time.<\/span><\/span><\/p>\n So what is the best Buy Now, Pay Later platform for eCommerce businesses? We compared six of the most popular BNPL providers for merchants. Note<\/strong>: The data from each of these companies is from their website. We have done some conversion rate testing<\/a> on BNPL apps for our clients and did not see the same results stated below, but they did have positive results.<\/span><\/span><\/p>\n [\/et_pb_text][et_pb_text module_id=”affirm” _builder_version=”4.17.4″ _module_preset=”default” text_font_size=”23px” global_colors_info=”{}”]<\/p>\n Affirm<\/a> <\/strong>(Best for Higher Priced Goods)<\/b><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Affirm has partnered with over 29,000 retailers in the US, including Walmart, Amazon, eBay, and PELOTON. Affirm\u2019s customer network is more than 11 million shoppers in the US and they offer longer installment plans for customers. Affirm uses its own unique algorithm called Adaptive Checkout<\/span>™<\/span> to determine and approve the appropriate loan amount for each customer. Unlike other BNPL providers, Affirm does not charge any late fees.\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text module_id=”afterpay” _builder_version=”4.17.4″ _module_preset=”default” text_font_size=”23px” global_colors_info=”{}”]<\/p>\n Afterpay<\/b><\/a> (Best for No Credit Check)<\/b><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Afterpay is an Australia-based pay-in-four app popular amongst Gen Z. They were acquired by Square, a digital payment company, which makes integration for Square-reliant merchants easy and seamless. They are the go-to app for more than 100,000 merchants, particularly luxury, beauty & fashion, and lifestyle retailers like Ulta, lululemon, Anthropologie, and Urban Outfitters. The company is available in Australia, the UK, the US, Canada, France, Spain, Italy, and New Zealand\u00a0<\/span><\/p>\n What makes Afterpay a great option for merchants is its lack of hard or soft credit checks. People with bad credit or younger shoppers with no credit are able to make purchases through Afterpay, widening the consumer base for merchants. Afterpay also doesn\u2019t offer strict credit limits; instead, approval for higher purchases is dependent on how long a customer has been an Afterpay user. Long-time Afterpay users are rewarded with higher purchasing limits.\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text module_id=”klarna” _builder_version=”4.17.4″ _module_preset=”default” text_font_size=”23px” global_colors_info=”{}”]<\/p>\n Klarna<\/b><\/a> (Best for Flexible Payments)<\/b><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Klarna is a Swedish BNPL service with a consumer base of 147 million consumers, 450,000 retail partners, and available in 17 countries. Klarna is used by major retailers like H&M, Sephora, Adidas, and Petco. Founded in 2005, Klarna pioneered the Pay-in-4 model that can now be used online and in-store. Their star feature, the Klarna Card, allows customers to turn any purchase at any retailer that accepts VISA into a BNPL transaction. Klarna also allows users to collect rewards to be redeemed on future purchases.\u00a0<\/span><\/p>\n Klarna\u2019s best feature for merchants is its flexible ways to pay. Integrating Klarna with your checkout system provides customers with three alternative ways to pay which is the highest out of our list.\u00a0<\/span><\/p>\n <\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.17.4″ _module_preset=”default” link_option_url=”https:\/\/www.ometrics.com\/ochatbot-for-enterprise\/” border_radii=”on|3px|3px|3px|3px” border_width_all=”3px” border_color_all=”#68AB37″ global_module=”6437″ saved_tabs=”all” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.ometrics.com\/blog\/wp-content\/uploads\/2022\/08\/Ochatbot_ecomm-cart-420×420-1-300×300.png” alt=”shopify plugins” title_text=”Ochatbot_ecomm-cart 420×420″ align=”center” _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.24.2″ _module_preset=”default” custom_margin=”|3px||3px|false|false” border_width_all=”0px” global_colors_info=”{}”]<\/p>\n WE GUARANTEE RESULTS!<\/strong><\/span><\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/www.ometrics.com\/ochatbot-for-enterprise\/” button_text=”Learn More” _builder_version=”4.24.2″ _module_preset=”default” custom_button=”on” button_text_size=”24px” button_text_color=”#FFFFFF” button_bg_color=”#f47404″ button_border_width=”0px” button_font=”|700|||||||” button_icon=”=||divi||400″ global_colors_info=”{}”][\/et_pb_button][et_pb_text _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_id=”paypal” _builder_version=”4.17.4″ _module_preset=”default” text_font_size=”23px” global_colors_info=”{}”]<\/p>\n PayPal Pay-in-4 and Pay Monthly<\/b><\/a> (Best for Trustworthiness)<\/b><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n PayPal is one of the most trusted payment providers for online shopping. Their purchase protection as well as their widespread availability makes them an attractive service for consumers.\u00a0 PayPal\u2019s purchase protection not only protects consumers, but it works to protect merchants from fraud, making it ideal for small businesses. There are also no associated merchant fees when retailers choose PayPal, the caveat being merchants need a PayPal business account<\/a> to add it to checkout. From the consumer side of things, PayPal has no late fees and isn\u2019t reported to credit bureaus.\u00a0<\/span><\/p>\n <\/span><\/p>\nOverview<\/h3>\n
What is Buy Now, Pay Later?<\/b><\/h2>\n
What are the Benefits of BNPL for eCommerce Businesses?<\/b><\/h2>\n
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Generative and Scripted AI to engage shoppers in conversational eCommerce.<\/strong><\/h4>\n
Create happy customers while growing your business!<\/strong><\/h4>\n
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1 out of 4 shoppers make a purchase on average*<\/h4>\n<\/li>\n
5% to 35% Increase in AOV*<\/h4>\n<\/li>\n
25% to 45% Reduction in Support Tickets<\/h4>\n<\/li>\n<\/ul>\n
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