4 Ways a Pay-Later Option Can Help Retain Customers

Now more than ever, retailers who can make life easier for today’s shoppers will win their loyalty.

“Easier” can mean a lot of things, from a swift, intuitive e-commerce transaction to a well-stocked store to a special experience or service that enhances a purchase.

But one of the leading ways that more than 8,500 Canadian and international retailers are engaging and retaining customers is by offering PayBright's buy now, pay later (BNPL) option at checkout, both in-store and online.

Brands like Endy, Wayfair, Samsung, Sephora and eBay understand that when they offer BNPL, they’re making their products more affordable, meeting the high expectations of Millennials and Gen-Zers, providing a better customer experience, and helping consumers reduce their credit card debt.

We’ll get to how BNPL options accomplishes all of that in a minute. But first…

What does ‘buy now, pay later’ mean?

Also known as installment payments, pay over time, or staggered payments, BNPL is an umbrella term for breaking up the cost of a purchase into smaller, more affordable increments over time. Here are PayBright’s two popular Payment Plan options:

Pay in 4: Customers get an instant approval and make 4 biweekly payments for their purchase. Interest free. No hidden fees. No impact to customer credit scores. Easy, automatic payments.

Pay Monthly: Customers enter a few fields of information for approval and make monthly payments over 6 to 60 months for larger purchases.

Flexible payment options open doors for consumers, empowering them to manage their spending in a way that works for them. And BNPL doesn’t just benefit consumers – it’s a great way for retailers to offer value to their customers. Here are 4 ways it can help your business' bottom line.

BNPL makes your products more affordable.

The pandemic has taken a toll on consumers. With continued economic uncertainty, Canadians have already indicated they are more focused on saving than spending in 2021.

But when their dishwasher breaks down or their old mattress is killing their back or their child’s tablet suddenly stops working, a big purchase may feel more like a necessity than a “want.” Retailers who offer the option to BNPL enable budget-conscious consumers to get what they need when they need it will inspire relief and loyalty.

BNPL meets the expectations of Millennials and Gen-Zers.

One of the most distinct findings in PayBright’s 2021 Canadian Consumer Trends Report is that Millennials and Gen-Zers overwhelmingly want and expect diverse payment options when shopping online and in-store in 2021. More than 64% of 35- to 44-year-olds, 64% of 25- to 34-year-olds and 61% of 18- to 24-year-olds indicated that it is an important purchase driver for them.

Millennials are notoriously more financially in debt than any other generation. Many actively seek payment options that don’t negatively impact their credit scores, produce high bills or balances, or otherwise stop them from getting out of debt.

Offering BNPL options at low- to no-interest provides the kind of financial flexibility younger generations are looking for when choosing a retailer. It gives them the ability to be creative with the way they manage their money without any crushing consequences.

As the largest segment of shoppers in the marketplace, you can’t afford not to give Millennials and Gen-Zers what they want.

BNPL provides a better customer experience.

In a competitive market, retailers often live and die by their Customer Satisfaction (CSat) scores. With a wealth of in-store and online options available to them, consumers choose retailers that create a simple, fast, and fun customer experience.

Convenience and personalization are often at the top of the list of consumer demands – and that extends to payment options. BNPL can be the icing on the cake of a great customer experience, allowing consumers to keep money in their pocket longer and take advantage of low- to no-interest rates.

BNPL helps customers reduce credit card debt.

It’s not just Millennials who are labouring under credit card debt. The current economic uncertainty means many Canadians are wary of piling more purchases on their credit cards.

BNPL gives customers another payment option and the low- to no-interest charges make it an excellent alternative to credit cards. It’s also reassuring that consumers are not required to sign up for a new credit card to make use of BNPL. It’s as easy as filling out a form, getting approval, and walking away without another credit issue to manage.

For retailers looking for ways to drive repeat purchases, it’s good to know that when customers sign up for BNPL with PayBright, they receive revolving credit limits that can be used for multiple transactions. Talk about an incentive to come back again and again!

The bottom line is that consumers appreciate retailers who respect that there’s not just one way to pay for a purchase. That kind of flexibility is an effective way to inspire repeat visitors and consistent business.

Learn more about how to retain your customers and easily integrate PayBright's BNPL option into your business.

This article is provided for informational purposes only. It is not an exhaustive review of this topic. The content is not financial or investment advice. No professional relationship of any kind is formed between you and PayBright. While we have obtained or compiled this information from sources we believe to be reliable, we cannot and do not guarantee its accuracy. We recommend that you consult your personal finance professional before taking any action related to this information. PayBright is a provider of Buy Now, Pay Later (BNPL) solutions. BNPL providers offer plans with a variety of terms and conditions, including interest rates, fees, and penalties, and have different standards for qualifying for loans. Laws and regulations governing BNPL providers vary by jurisdiction. We recommend that you compare and contrast plans, read the fine print, and conduct detailed research into any BNPL provider before using their services.