Christmas is around the corner and the next few weeks will become much busier for many businesses. So, you may be wondering how you can maximize your sales. More ads, email campaigns and offers are an obvious choice but have you thought about implementing buy now and pay later? The benefits look promising and the risks are minimal, let’s take a look at how BNPL can work for your business…

What is BNPL?

Buy now pay later is essentially a microloan which spreads the cost of a purchase over a few months. It is more accessible than a bank loan and has a lower approval rate so almost anyone can apply. The process is simple and, for the business, it fits seamlessly into the checkout process.

As inflation is rising and costs are increasing, companies such as Klarna and Afterpay used the market (and at the time Covid-19) to forge a new payment path in the E-Commerce world. Now, a few years on, even Apple has introduced BNPL with the latest iOS16 update.

Who’s using BNPL services?

Gen Z has particularly taken a shine to using this option as they have grown up in a world where no one uses cash and technology is at the forefront of buying. They have very little fear when it comes to online loans. But this isn’t to say that other generations aren’t taking this option. With Christmas being a financial struggle for a lot of homes this year, the option to break a larger payment into more sizable chunks over the next several months will look very attractive.

What about the risks?

Like all loans, there is always a risk factor. The primary risks associated with using BNPL service lie mainly around the consumer and not the business. Missing a payment may impact the customer’s credit score, can result in interest rates added to their payments, or can even block them from their accounts for additional loans until they have paid. While consumers may face these risks, retailers won’t have any liability.

Despite the risks, a 2021 survey from the Strawhecker Group shows that 55% of surveyed BNPL users have a higher average cart spend than they would with one-off payment purchases. Not only that, almost half of US citizens are interested in buy now pay later so why wouldn’t you jump on this chance to get extra sales?

Larger companies have implemented this payment method already and they now display the monthly price next to the full amount as a way to entice people to buy the bigger ticketed products.

BNPL and SourceKnowledge are the dream duo

It’s easy to see how BNPL could easily convert your consumers – now lies the issue of getting your potential customers to your website. SourceKnowledge knows how. With our wide web of publishers, we can extend your advertising reach and funnel traffic to your site. We have thousands of publisher relationships that promise millions of monthly clicks. Paired with buy now pay later, you’ll be seeing an increase in your sale conversions this Christmas.

Ready to learn more? Get Started with SourceKnowledge!