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Buy Now Pay Later (BNPL) has become a popular payment option among both merchants and customers because it allows shoppers to conveniently buy high-priced items without having to pay the entire cost upfront.
In turn, this leads to increased average order value and improved conversion rate for merchants. As a result, merchants offering BNPL may witness a 68% higher average order value.
Sounds like a win-win, doesn’t it?
Well, there’s a catch.
While multiple financial institutions and new-age fintech platforms are offering BNPL payment service to merchants, integrating each separately onto one’s website is a hassle.
Cashfree Payments new BNPL suite offers the widest pay later partner network through a simple, one-time integration. In this blog, let’s dig deeper into the importance and challenges of BNPL and how Cashfree Payments’ suite is solving for them.
What is Buy Now Pay Later (BNPL)?
As the name suggests, Buy Now Pay Later is a payment method that allows customers to purchase the product and pay for it later in one or more installments.
Often interest free, the BNPL market is witnessing remarkable growth in India. Interestingly, the BNPL market is set to cross USD 7000 million by 2022 end. Not so surprisingly, the 26 to 35 age group is the primary segment of the BNPL market in India.
Cashfree Payments’ BNPL Suite: Integrate With Multiple BNPL Players
Cashfree Payments BNPL Suite allows you to provide multiple Buy Now Pay Later partners on your checkout at once through a simple, one-time integration.
In fact, you can offer the widest range of buy now pay later payment options to customers and increase conversions exponentially. For instance:
Cardless EMI Option
- Reach 25+ million customers who use Buy Now Pay Later
- Offer a faster checkout process with one-click pay later option
- Give access to credit with just the customer’s phone number
- Payment Partners – ZestMoney, KreditBee, FlexMoney
Debit Card EMI Option
- Tap the untapped customer base by introducing the Debit Card EMI option
- Empower India’s 90+ crore debit card users
- Payment Partners – HDFC and ICICI (more leading banks coming soon)>
Credit Card EMI
- Offer smart Credit Card EMI option and enable customers to pay at a later stage
- Offer customer the option of No-cost EMI
- Payment Partners – SBI, HDFC, ICICI, Axis Bank, Bank of Baroda, Kotak Mahindra, Citi Bank, HSBC, RBI, Yes Bank, Standard Chartered, AU Small Bank
Pay Later
- Offer access to the widest range of Pay Later service providers
- Provide a one-click payment service ensuring a superior customer experience
- Payment Partners – HDFC, LazyPay, Ola Money Postpaid, ePayLater, Simpl, Kotak, and more
No Cost EMI
- Run seasonal offers by partnering with major banks to provide No Cost EMI on Credit Cards
- Delight your customers by waiving off the interest charges on their EMI payments
- Set up No Cost EMI with zero tech effort right from your Cashfree dashboard
How To Integrate Cashfree Payments’ BNPL Affordability Suite Onto Your Checkout Page?
There are two ways to integrate the BNPL Affordability Suite with your platform.
For Merchants Using Standard Checkout Flow
If you’re using a standard checkout page, Buy Now Pay Later options will be auto-enabled for your business with zero integration effort.
For Merchants Using Seamless Checkout Flow
If you’re using Cashfree Payments’ Seamless Checkout Flow, you can easily integrate the Buy Now Pay Later options with a few additional parameters on the existing APIs.
Please follow the steps mentioned in Cashfree Order Pay documentation for a smooth integration.
Now, let’s have a quick look at the various benefits of BNPL making it one of the fastest growing payment methods in India.
Why is The BNPL Market Growing Rapidly in India?
While BNPL is a great short-term financing tool, its appeal goes beyond credit. Let’s have a look at some of the reasons why BNPL is growing at a CAGR of >15% in India.
Wider Customer Base
Merchants can cater to a wider audience base by making high ticket-size purchases more affordable through BNPL. This allows them to cater to shoppers with a relatively smaller spending pocket.
Improved Customer Experience
Customer satisfaction increases exponentially when they’re given the leverage to make payment via their preferred payment method. This also gives them more control over their purchasing decisions. Offering this flexible payment option is another way to win the game and ensure improved customer experience.
According to Afterpay, offering BNPL as a payment option increases a merchant’s conversion rate and incremental sales by 20% – 30%.
Higher Average Order Value
Since shoppers have the leverage to make smaller and spread out payments with BNPL, it automatically increases their purchasing power. It gives them the confidence to buy high ticket-size commodities which once seemed difficult due to their on-the-spot spending capacity.
For merchants, this translates into higher average order value and repeat customers.
Higher Conversion Rate
According to Baymard, about 7% of online shoppers abandon their carts due to lack of availability of flexible payment options. Adding the BNPL payment method can help merchants reduce cart abandonments and increase conversions by a great percentage.
Try Out Our BNPL Suite Now!
Cashfree Payments’ primary objective is to help merchants streamline their payment processes and benefit in every possible manner.
The all new BNPL Suite aims to serve the same objective and enable merchants to bag as many conversions as possible and increase revenue exponentially.
Sounds interesting? Get in touch with our BNPL experts today!
