Buy now, pay later (BNPL) financing has helped retailers increase their sales volume and average cart size as it has grown in popularity. In fact, businesses that adopt some sort of BNPL financing see an average 20-30% increase in conversion and a 30-50% increase in average ticket size. These benefits are especially pronounced in traditional retail markets like electronics, fashion, and similar industries.

The question for many business owners is how to get started. With both ecommerce stores and brick-and-mortar to worry about, the transition can seem daunting. Luckily, we have everything they need to know to offer buy now, pay later within weeks.

To get business owners started, we will cover:

• The benefits of BNPL financing
• Which types of financing to offer
• How to get started

The Benefits of Offering BNPL Financing

There are so many ways that businesses can benefit from offering flexible payment options. It isn’t only a convenient option for consumers but also a way to modernize the purchase process and increase the buying power of shoppers enough to help move premium or bulk products. 

The most significant benefits include:

• An increase in conversion and average ticket size
• Improved customer satisfaction
• More repeat business
• Fast and simple purchase process

Let’s dive into each of these and the impact they can have on a business that chooses to offer buy now, pay later financing.

Increase in Conversion and Ticket Size

As we covered earlier, some substantial growth opportunities are available when businesses offer BNPL. The increase in conversion and ticket size are the most direct and significant benefits as they are two of the most important KPIs of any sales-driven business. They directly impact profitability and growth and drive investment in better products and solutions.

Improved Customer Satisfaction

Customers appreciate the flexibility and convenience offered by consumer financing, and it is just as much of a customer service tool as it is a sales tool. 50% of consumers have used a BNPL service, proving they are enthusiastic about its value. Ensuring customers have every tool they need to make their purchase will give them a better impression of the business as a whole.

More Repeat Business

As a downstream effect of higher customer satisfaction, more repeat and referral business tends to be generated when retailers offer buy now, pay later. BNPL service provider Afterpay has even dropped a shocking statistic: 90% of their business is comprised of repeat customers. Creating loyal customers is vital to sustainable growth, and consumer financing seems to do a great job.

Fast and Simple Purchase Process

There are more benefits to ecommerce and in-store retailers that offer BNPL than just financing. These platforms often allow businesses to revamp their payment process, making it simpler and more attractive, as well as adding useful functionality like one-click payment. This helps modernize online and in-store retailers and enhance the shopping experience for the customer.

Types of Financing to Offer

The benefits of financing are only maximized when businesses offer the right ones. This is where the strategy comes in. Choosing a software tool that can provide multiple types of financing can help retailers meet the needs of every possible customer. While many platforms only offer buy now, pay later options, retailers benefit the most from fintechs who allow partners to offer:

• BNPL
• Credit cards
• Personal loans
• Leases

While some of these are more useful than others depending on the industry, it is important to seek out a partner that can deliver all of them. The best fintech providers will even offer them from multiple sources to ensure that many different underwriting criteria are applied to each application to increase the odds of approvals.

Skeps accomplishes this by working with an entire network of lenders that each offer their own library of financial products. By checking each application against all of them simultaneously, we are able to achieve near-instant approvals with the highest level of versatility.

Offer Buy Now, Pay Later With Skeps

Skeps offers a comprehensive, end-to-end consumer financing program that helps businesses modernize their entire payment process. We go above and beyond one-click payment, also offering a one-click application process for several different types of consumer financing, including:

• BNPL
• Consumer loans and leases
• Branded credit cards

If you’re looking to partner with a forward-thinking fintech company that will keep consumers' eyes on the purchase while offering best-in-class financing, Skeps is the perfect fit.