One of the trickier parts of building a website, especially for BigCommerce developers, is to find the best payment method for the store.
There are plenty of options when it comes to payment and checkout methods, many of them offer incredible advantages and greatly simplify the way your users interact with your online store and make your life easier on the financial side of things.
However, one must be careful when choosing as some checkout methods are not suitable for certain audiences.
For example, some businesses can get by using direct payment options, debit cards, and cryptos as a way of ensuring a constant cash flow. But others need to include more flexible payment methods such as credit cards if they want to drastically reduce purchase hesitancy among their users.
During the last few years, the trends pointed towards a generalized adoption of plastic payment (credit cards) as the preferred way to purchase online. However, the increase in the need for credit came with its problems. The younger generations are getting wiser about growing debt, and are always looking for ways to avoid accruing debt, making them hesitant to continue to checkout or more prone to cancel their order after the fact. Almost 50% of shoppers leave their carts unprocessed due to unexpected fees and costs associated with shipping and processing fees.
Buy Now Pay Later Options For BigCommerce Stores
Some companies noticed these tendencies and are now offering Buy Now Pay Later options or POS installment loans. These arrangements allow your users to make an immediate purchase but delay payment to a future date or split it in smaller and easier to manage amounts.
According to a recent study by Business Insider, these options are on the rise. BigCommerce developers have the opportunity to offer Buy Now Pay Later products right alongside their other goods and services. This can be an incredible way of increasing average order value, as customers are not afraid to buy more expensive items because they do not have to worry about fees or limit their shopping time due to lack of funding.
The main advantage is that many of the BNPL options are interest-free. Moreover, many only run a soft credit check before approval, meaning that it won’t affect your credit score.
There are many BNPL providers and each one has its own requirements and procedures. Here is a little bit about some of the more interesting ones:
Affirm is an online lending service that provides flexible repayment plans with the option to repay by installments. It primarily caters to B2C companies, including many of the biggest names in e-commerce today. The platform has seen staggering growth over the past year, 2500% to be precise, and it shows no signs of stopping anytime soon.
Affirm’s main goal is to help users “feel confident they can purchase what they want when they want.” With a user-friendly interface and a wide range of payment plans that fit almost every scenario, Affirm helps you achieve this.
Klarna is a leading provider of many e-commerce solutions. With the Klarna Checkout and Klarna Pay Later options, customers can purchase goods at fixed monthly installment rates from participating stores.
Stores that use the Klarna payment system can create custom plans for each one of their users, allowing you to offer different terms and conditions, or simply more flexible ones, depending on the customers you see coming through your online store.
The BigTech giant also announced their BNPL options last year, giving the trend a lot more legitimacy. They are not as flexible but do offer a lot more solidity given their credibility.
To understand these payment options and see which one works best for you and your audiences, you need to consult an expert BigCommerce development agency. 1DigitalⓇ Agency is a BigCommerce Elite Partner and specializes in making eCommerce businesses grow. Contact them today and find out more about the Buy Now Pay Later options available today.