Buy Now, Pay Later could be the answer your business is looking for to increase your commerce conversion rates. BNPL (for short), allows customers to do as it says: buy the product now and pay later. This payment process allows customers to split the cost of their purchase into a handful of smaller payments over a period of a few weeks or months until their purchase is completely paid off. At the time of the purchase, only the first smaller installment is due from the shopper.
“buyers have the flexibility to split their purchases into four equal, interest-free payments - with no additional, hidden, or late feeds, and no impact to their credit scores.”
Buy Now, Pay Later allows customers to make more frequent visits to your site with higher value purchases at a more affordable cost. This method also permits shoppers from having to worry about concerns such as interest accruing on the purchase.
Last September, Shopify rolled out their own “buy now, pay later” payment option with Shop Pay Installments. With Shop Pay Installments, “buyers have the flexibility to split their purchases into four equal, interest-free payments - with no additional, hidden, or late feeds, and no impact to their credit scores.” From the launch in September 2021 through January 2022, 1 out of 4 Shopify merchants saw a 50% higher average order volume with the use of Shop Pay Installments.
To learn more about how to become an eligible merchant for Shop Pay Installments, visit the Shopify blog.