Online shopping is seeing increasing growth (revenue and order terms) by the day. As e-commerce companies continue to put efforts on making online shopping experience better, we can be rest assured that the number of online shoppers and online orders will increase exponentially in the time to come.
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 and herein lies the issue of cart abandonments and failed purchases.
Over the last two years or so, a few start-ups have been focusing on alleviating the problem of failed and 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 out the payment transaction process.
Concerns of buyers and sellers
Research has also shown that shoppers tend to get confused with too many payment options at the check-out page. Along with options of—Credit and Debit cards, there are a good number of online payment wallets which act as a channel for payments and too many options could either be a boon or a bane depending on customer priorities and trust factors.
A smooth payment process that is simple and straightforward 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, shopping experience can be redefined. And why not, when technology and innovation help change the way business is done and save time and efforts for customers.
Advantages of 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 need to be eased into purchasing products comfortably and pleased at the end of the purchase funnel. This happens to be a sure shot way for e-commerce companies to gain traction and increase orders and subsequent revenues.
The unique concept of Buy Now Pay Later, first of all puts the shopper at ease; he is no longer worried about payment transaction delay or failure. Shopper is much more relaxed as he can take time to sift through product variants and 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, isn’t it? Well, that is the reality with Buy now, Pay later concept as all a shopper needs to do after selecting a product is just a “click’’ to complete the check-out process. Single-click check out process ensures a faster purchase process and almost zero errors when it comes to payment transactions.
The success rate of purchase is much higher in comparison with the usual payment gateway transactions which often witness significant drops during the process. Moreover, this also saves a huge amount of time for the shoppers and 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 there is no big difference between companies as far as customer out-reach, branding, and product availability is concerned. Rather the difference is created in subtle things such as—product search, product variance, faster landing page, product selection and payment process.
There is tougher 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 loose a purchase but in the long-run creates some sort of apathy towards online payments from the shopper point of view. This is something e-commerce companies cannot afford to have as it causes a huge loss both on revenue and brand image terms.
Shop now and buy later intends to help companies not fall 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.
At the end of the day 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 online shopping buy now pay later concept fits the bill perfectly as it helps both the shoppers and companies achieve their respective objectives.