Buy now, pay later: What it is, how it works and its advantages
Retailing is changing in leaps and bounds and consumers are developing new needs that require constant updating on the part of companies. “Incredible things will happen when you listen to the consumer,” according to Jonathan Mildenhall, one of today's top executives, who has revolutionised the business strategies of companies like Coca Cola and Airbnb. Listening to consumers means providing them with all the options and facilities in the shopping process. One of the most accepted is the buy now, pay later service. Let's take a look at what it is, how it works and what its advantages are.
What is "buy now, pay later" and how does it work?
In traditional retailing, customers go to the store, assess the products, choose those that interest them and contact the sales staff to be charged. Until the item has passed through their hands and they've been able to check that it meets their needs, they don't pay anything.
With online stores however consumers pay before receiving a product or service, for which they've only seen a description on the website, a circumstance that may cause doubts to creep in prior to making payment. When customers buy now and pay later, they have a guarantee that enables them to trust in the website concerned and make future purchases.
With the buy now, pay later system, customers only pay for their acquisition once they've had it in their hands and have been able to confirm that it satisfies their expectations. This service provides the eCommerce sites that offer it with an extraordinary advantage, given that it's a simple and secure alternative and proves useful to all kinds of users.
Business that incorporate this service enable their customers to choose “Pay later” as the payment method when they go through the checkout; they need only enter their details, and they won't have to pay until they receive the product some days later. It's as simple as that. It's as beneficial as that for both parties.
What are the benefits of "Buy Now, Pay Later"?
It's clear that a service such as buy now and pay later enhances the trust of customers, who have the certainty that they're only going to pay for something that they want, that they're not going to get a surprise when they receive a product other than what they were expecting or with features they do not like. There is no greater asset for online retailers than to establish trusting relationships with consumers.
But there are more benefits for the online stores that use the system of buy now, pay later. Here are some of them:
Secure your users' loyalty
It multiplies your chances of converting a user into a regular customer. It has been shown that giving the option of flexible payments is always a guarantee of success and lays the groundwork for repeat purchases with the business.
Between a store that offers buy now, pay later and another that requires payment upfront at the time we put something in the basket, the chances of choosing the former increase significantly.
It attracts new customers
Let's imagine a situation of some urgency. For example the TV suddenly stops working. It's possible however that at that precise moment we don't have the money to buy a replacement. If we go to a business offering the buy now, pay later system we'll be able to pay for it only after we receive it, giving us time to assemble the funds required.
It increases the conversion rates of your eCommerce site
We all know that there's a very high percentage of users who abandon their shopping basket before committing to the transaction. The fact that it does not represent an immediate outlay plus the facilities that buy now, pay later offers will ensure that such abandonment is considerably reduced.
Which sectors and stores can buy now, pay later be applied to?
All online sectors and stores are appropriate for applying the buy now, pay later strategy. Because this is not only suitable for tangible products sold online like technology, home décor and other retail items, it can also be implemented in digital business offering services, such as dental clinics, car repair workshops and training course providers, among many others. In short, buy now, pay later is applicable and has a large number of benefits for any digital business.
Pay later with SeQura
SeQura was the first company to provide this option in the Spanish market and is the only one not to request any banking information, just ID and mobile numbers. Thousands of online stores now trust our platform thanks to a simple, useful and secure system that enhances the satisfaction of their customers.
Users find that eCommerce sites that have incorporated the SeQura system offer a highly useful and easy-to-use option. All they have to do is select "Pay later" when they finish the payment process.
Once they have received the product or service and confirmed their satisfaction with it, they have up to 7 days to make the payment by credit card, bank deposit or bank transfer.
Online stores that use this service have payment guaranteed by SeQura. So giving payment facilities to their customers does not incur any risk for them.
In addition, SeQura offers other options that facilitate shopping. Thus, customers can choose to split their payments into three parts, pay by instalments or defer payment, an ideal option for months when there are more expenses. Such alternatives multiply the chances that eCommerce sites offering SeQura's buy now, pay later are chosen by users in preference to rival businesses that lack this system.
What's clear is that facilitating and increasing customers' payment options has nothing but advantages for online retailers. We all know the phrase "the customer is always right". In these days of digital retailing we can supplement it by saying that customers always have to have all the possibilities at their disposal in their purchasing process. Buy now, pay later is an alternative that is going to increase user satisfaction with those businesses that install it and, at the same time, the value of their brands.
And if you want to incorporate this payment method into your business, don't hesitate to contact us and we'll attend to you in a personalised way. And without any type of commitment on your part!