Buy now pay later, is becoming an increasingly popular payment option for many online buyers. By paying only the first payment in advance, customers can buy now products and pay the rest later in equal installments on a monthly basis for up to 4 months, with absolutely zero interest!
E-commerce business owners in Saudi Arabia should consider offering buy now pay later (BNPL) as a payment option for their customers for several reasons.
First, BNPL offers convenience for customers. With BNPL, customers can make purchases without having to pay for them upfront. This is particularly useful for customers who may not have the funds available at the time of purchase or who may not want to tie up their credit cards with large purchases. BNPL allows customers to pay for their purchases in installments, which can be a more manageable and budget-friendly option.
Second, BNPL can increase customer loyalty and repeat business. By offering BNPL as a payment option, e-commerce businesses can attract and retain customers who may not have been able to make a purchase otherwise. These customers may then be more likely to return to the business in the future, leading to increased sales and revenue.
Third, BNPL can improve the customer experience. Many e-commerce businesses struggle with abandoned carts and low conversion rates, particularly when customers are faced with high upfront costs. By offering BNPL, businesses can make it easier for customers to complete their purchases and reduce the risk of abandoned carts. This can lead to higher conversion rates and overall satisfaction for both the business and the customer.
Fourth, BNPL can help businesses attract younger customers. Younger consumers in Saudi Arabia, particularly millennials and Gen Z, are more likely to prefer BNPL as a payment option. By offering BNPL, businesses can tap into this demographic and appeal to younger customers who may not have the funds available to make large purchases upfront.
Fifth, BNPL can help businesses compete with larger e-commerce players. Many larger e-commerce businesses, such as Amazon, already offer BNPL as a payment option. By offering BNPL, smaller e-commerce businesses in Saudi Arabia can compete with these larger players and offer customers a similar payment option.
Finally, BNPL can help businesses increase their sales and revenue. By offering BNPL as a payment option, businesses can increase their customer base and attract new customers who may not have been able to make a purchase otherwise. This can lead to increased sales and revenue for the business.
However, it is important for e-commerce businesses to consider the charges associated with offering BNPL, as a percentage will be deducted from the Gross Merchandise Value as charges, which can impact the overall profitability of the business.