Online shopping is seeing increasing growth (revenue and order terms) by the day. As e-commerce companies continue to improve the online shopping experience, we can rest assured that the number of online shoppers and online orders will increase exponentially in the coming time.
For e-commerce companies, though this is happy news, they need to be wary of the fact that—more online shoppers mean more online payment transactions.
Herein lies the issue of cart abandonments and failed purchases. Over the last two years, a few start-ups have focused on alleviating failed or delayed payment transactions.
This has resulted in the arrival of a new trend in online shopping—Buy your products now and pay for them later.
This concept hopes to redefine the online shopping experience even as it eases the payment transaction process.
Concerns of buyers and sellers
Research has also shown that shoppers need clarification with too many payment options on the checkout page. Along with options for—Credit Cards and Debit cards, many online payment wallets act as a payment channel.
Too many options could be a boon or a bane depending on customer priorities and trust factors. A smooth and straightforward payment process is the need of the day to ensure a hassle-free shopping experience for shoppers.
With the unique concept of Buy now and pay later, the shopping experience can be redefined. And why not, when technology and innovation help change how business is done and save time and effort for customers?
Advantages of the Buy Now Pay Later Concept
Benefiting Shoppers and creating the pull effect
Shopping is all about the customer and his shopping habits and preferences. When it comes to online shopping, shoppers must be eased into purchasing products comfortably and pleased at the end of the purchase funnel.
This is a sure-shot way for e-commerce companies to gain traction and increase orders and revenues.
The unique concept of Buy Now Pays Later puts the shopper at ease; he is no longer worried about payment transaction delay or failure.
The shopper is much more relaxed as he can take time to sift through product variants, select a preferred one, and not be bothered about when and how he should pay.
Delivery at just a click? Sounds too good to be true. Well, that is the reality with Buy now, Pay later concept, as all a shopper needs to do after selecting a product is “click” to complete the checkout process.
A Single-click checkout process ensures a faster purchase process and almost zero errors in payment transactions.
The purchase success rate is much higher than the usual payment gateway transactions, often witnessing significant drops. Moreover, this also saves the shoppers a considerable amount of time.
In the current fast-paced time-constrained ecosystem, that is a welcome gift.
Benefiting E-commerce owners and creating enhanced business
In a technology-dependent business ecosystem, companies regarding customer outreach, branding, and product availability are the same.
Instead, the difference is created in subtle things such as—product search, product variance, faster landing page, product selection, and payment process.
There is stricter competition between e-commerce firms, and it’s easy for one or all of them to lose customers at the end of the purchase funnel—the payments junction.
A delayed online payment process not only helps one lose a purchase but also creates some apathy toward online payments from the shopper’s point of view. E-commerce companies need help to afford this as it causes a considerable loss in revenue and brand image terms.
Shop now and buy later intends to help companies avoid falling prey to slower internet speeds, defective payment gateways, and inadvertent payment transaction failure. Because under such circumstances, the entire shopping experience, the very thing these companies work hard for, goes for a toss resulting in dissatisfied customers.
Conclusion:
Online shoppers are looking at easy-to-make and hassle-free purchases, while e-commerce companies are looking for a higher purchase transaction percentage and would love to bring down the cart abandonment percentage to zero.
The concept of online shopping buy now pay later fits the bill perfectly as it helps both the shoppers and companies achieve their respective objectives.
Image Credit: oneop.org