What is Buy Now Pay Later? Is it good? What are the precautions?
Buy Now Pay Later is an installment payment method without using a credit card, increasing financial flexibility for customers and helping businesses by increasing sales and reducing cart abandonment.
In an era where digital technology has revolutionized every dimension of life, including how we spend, 'Buy Now Pay Later' (BNPL) has become a hot trend and is being widely discussed in the business and consumer circles worldwide. This new form of financial service is not just the traditional installment plan, but offers a faster, more flexible, and more accessible alternative for managing personal liquidity. The process is often easier and faster than applying for a traditional credit card.
This article will take you deep into every aspect of 'Buy Now Pay Later' to understand its benefits and its important role in the digital economy.
Key Takeaways
- Helps customers make purchasing decisions faster, reducing decision barriers, especially for high-priced items.
- Increases value per order (Ticket Size); when customers can split payments, they tend to purchase more products.
- Expands business opportunities, reaching new generations or those without credit cards.
Article Contents
- What is Buy Now Pay Later?
- How is Buy Now Pay Later different from credit cards?
- How does Buy Now Pay Later increase sales closing chances?
- How can your customers Buy Now Pay Later via KGP?
- Frequently Asked Questions (FAQs)
- Buy Now Pay Later: A sales boosting tool you should have
What is Buy Now Pay Later?
Buy Now Pay Later (BNPL) service is a financial mechanism that combines the convenience of online shopping with the flexibility of payment. It is a payment alternative that allows customers to receive products or services for use first and then gradually pay back later, usually divided into installments.
The advantage of the Buy Now Pay Later service is that it makes trading easier due to rapid approval at the Point-of-Sale, and it can help stimulate immediate purchasing decisions for high-priced items.
How is Buy Now Pay Later different from credit cards?
Entrepreneurs should understand the differences between Buy Now Pay Later services and credit cards to help you decide on payment channels that are suitable for your business's target audience, especially considering the ease of access for customers.
Buy Now Pay Later
Buy Now Pay Later is suitable for the new generation, students, or those without a fixed income who want to manage short-term cash flow and want the convenience of buying products without using a large lump sum at once. However, this service has higher accessibility conditions than credit cards because the application process is simple, fast, and often uses only a single ID card for identity verification via an application without submitting complex income documents. regarding the payment format, Buy Now Pay Later typically involves installment payments over a specified period, supporting both short-term interest-free payments or longer installment options depending on the conditions of each service provider.
Credit Card
Credit cards are suitable for businesses with customer groups that have financial stability, regular income, and want to spend to accumulate points or receive various financial privileges in the long term. However, credit cards have lower accessibility conditions due to strict application and document verification processes according to financial institution standards. regarding the payment format, credit cards function as a revolving credit line which supports both full repayment or minimum payment options according to the customer's needs.
How does Buy Now Pay Later increase sales closing chances?
Using Buy Now Pay Later is a strategy that can effectively increase the chances of closing sales. With the Buy Now Pay Later system from KGP x Atome, an online payment system that has a positive impact on customer behavior as follows:
- Stimulate immediate sales: Helps customers decide to buy easier because they don't have to pay a large lump sum, reducing anxiety about the expense burden at once.
- Expand new customer base: Attract people who do not have credit cards because it supports debit card deductions, and is not limited to brand-name products; items priced in the hundreds can also be paid in installments.
- Increase sales closing chances: Reduce cart abandonment with 0% installment options without waiting for promotions, helping customers buy easier without hesitation.
- Elevate credibility: Shops look more professional and modern than those accepting only bank transfers, increasing buyer confidence with international standard payment systems.
How can your customers Buy Now Pay Later via KGP?
Turn every purchasing decision into an easy matter while boosting shopping power for your customers with a flexible payment system via KGP connected with Atome. This helps customers get the products they want instantly but pay comfortably in 3 installments at 0% interest, with simple steps as follows:
1. Select Channel: The customer chooses to pay via Atome and provides their name and email. 2. Verify Identity: Enter phone number to receive and input the OTP code to verify identity. 3. Check Amount: The system will display the 3-installment amount for the customer to check, then select the payment method and press confirm. 4. Payment Successful: When the transaction is successful, the system will deduct the 1st installment payment immediately.
*Study details, limitations, and additional conditions at the Atome app. Borrow only what is necessary and affordable to repay. Interest rate 0-15% per year.
Frequently Asked Questions (FAQs)
If a customer uses Buy Now Pay Later and then returns the product or cancels, what must the merchant do?
The merchant must wait for the online payment system to notify regarding the refund/return request, then proceed to respond in the system. The merchant can accept or reject that request. If accepted, the merchant will receive the refund according to the platform's procedures.
Buy Now Pay Later: A sales boosting tool you should have
Starting online sales strongly and sustainably must begin with laying a solid business foundation, coupled with choosing strategies and tools that meet the behavior of modern consumers.
KGP is ready to provide connection services for the Buy Now Pay Later payment system from Atome. Customers will be able to choose to split payments for products and services according to convenient cycles, which helps increase the opportunity to close sales easily and quickly.
Additionally, KGP supports a variety of payments, whether it be Meta Pay, QR Payment, Mobile Banking, Debit Cards, Payment Link, TrueMoney Wallet, and Automatic Direct Debit (ODD) services, which make customer payments easier and help strengthen business credibility.
*Study details, limitations, and additional conditions at the Atome app. Borrow only what is necessary and affordable to repay. Interest rate 0-15% per year.
KGP, Payment. Make It Smooth.
LinkedIn : Kasikorn Global Payment
References
1. Narisara Warawut. (2023). Factors Affecting the Acceptance of Spaylater. Independent Study, Thammasat University. [Online] http://ethesisarchive.library.tu.ac.th/thesis/2023/TU_2023_6523036066_18073_28352.pdf
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