How to Communicate the Benefits of BNPL to Your Customers
While BNPL (buy now, pay later) is growing in popularity--and demand--among shoppers, many are still new to the option.
Merchants who offer, or plan to offer, Afterpay to their customers can increase utilization and attract new shoppers by clearly communicating how BNPL later works, in addition to the financial benefits.
Some retail experts call BNPL “the end of traditional credit cards,” and others note that BNPL is fast becoming the preferred way to pay among Millennials. Further, nearly 90% of shoppers ages 22 to 44 are interested in monthly installment plans. Beyond this growing usage among shoppers, Afterpay brings tangible benefits to merchants, including higher AOV, larger average cart sizes, increased rates of return shopping, and more.
It’s not just for large purchases, either--while the ability to pay in four equal installments helps shoppers get items they may not otherwise be able to afford up front (or may not want to accrue interest on via credit cards), it’s also used for everyday, smaller purchases as part of a smart budgeting strategy.
Here are some tips to communicate the financial benefits of Afterpay to your customers:
First, explain what it is
Our merchant partners tell us often that using Afterpay in their marketing efforts helps drive conversions. Part of this is explaining how Afterpay works, and because transparency is foundational to us, we’ve made it easy to communicate the process:
- Sign up: New Afterpay users can get an approval decision in minutes.
- Checkout: Shoppers complete their order with Afterpay.
- Pay over time: Customers pay in four installments every two weeks, directly to Afterpay.
- No fees: Always zero interest, with no fees when shoppers pay on time.
Whether communicated on social platforms, website lightboxes, or in-store signage, we have turnkey assets for retailers including imagery, logos, and messaging.
Then, show the benefits
From everyday essentials to big-ticket items, Afterpay is fast becoming a core element of shoppers’ budgeting strategies. This is driven in part by an increased interest in their financial health: a recent Afterpay survey found that 90% of consumers say financial wellness is important to them, yet only 40% consider themselves financially literate. This means customers are not only becoming savvier about their spending habits, but expecting payment options that are fair, transparent, and flexible.
A Motley Fool study found that most people use BNPL to avoid paying credit card interest or buy something not in their budget. Increasingly, it’s becoming part of consumers’ overall financial wellness journey, which we at Afterpay help enable by providing customers with clear insight into their purchases, upcoming payments, balances, and more. This level of transparency often means Afterpay becomes the consumer’s preferred way to pay, leading them to seek out merchants that offer it through our directory.
Not only does BNPL help shoppers spend smart, but it’s a win for retailers: options like Afterpay “allow retailers and customers to align across their financial values like adhering to a budget, avoiding debt, and increasing their purchasing power.”
Follow our Retailer Blog to learn more about how Afterpay helps merchants empower their customers’ financial wellbeing. And to get in touch with Afterpay to learn more about how your business can benefit, please click here.
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