Technology has taken over in the 21st century and now consumers are able to make payments for their purchases using a wider variety of options. While we have the traditional modes of payments like cash and checks, plastic money in the form of credit cards have also taken over the transactions industry. Today, people are moving away from plastic money and using online payment methods wherein they use e-Wallets and other online payment methods.
Buy Now Pay Later is the new hot trend in the payments industry and is now attracting customers and investors alike. At the core of it, Buy Now Pay Later is another form of installment payment plan which has allowed customers to buy and pay for large purchases within a timeframe that the customer is comfortable with. The concept of Buy Now Pay Later has brought retailers and customers into the digital age by allowing retailers to offer installment payments for products, regardless of whether they are bought online or physically in a store.
A Buy Now Pay Later makes customers feel that any product, regardless of its price, is affordable. They can easily purchase it by paying the required installments every month under this option. Just like how people moved to iPods from Walkman and Streaming from buying albums, The Buy Now Pay Later option is the next evolution of payment instruments after Credit Cards.
Benefits of Buy Now Pay Later
Buy Now Pay Later offers an extensive list of benefits to both the customers and sellers as well as the payment platforms. Everyone involved benefits from the easy and affordable payment structure as it allows for goods to reach a wider market and more and more people are able to spend, which again gives the economy a major boost.
Here are some of the major benefits that customers and sellers are able to draw from the Buy Now Pay Later payment option:
It’s an evolution of the credit-based payment mechanism wherein you ended up borrowing from your service provider and had to pay the interest along with paying back what you borrowed. Buy Now Pay Later is much simpler and low-cost when compared to credit cards and provides a transparent payment mechanism to customers.
The Buy Now Pay Later mechanism is built into the checkout step of your shopping process so that you don’t have to take any extra steps or learn about something new before you can use this option.
It greatly helps with your monthly budgeting as you are in complete control of the payments you have to make and can strategize your monthly budget based on the dues you have.
Buy Now Pay Later has made almost every product affordable for customers and they can now buy all those items they have been slowly putting together money for the past several months/years.
Buy Now Pay Later is an excellent avenue for people to avail credit who have reached limits on their credit cards and also gives people without credit access to credit payment options
Sellers have been able to increase their customer conversion rates by 2-3 times than the rates before Buy Now Pay Later was introduced and average cart sizes have also increased by 20-30%.
Customer retention has increased for e-commerce sites offering Buy Now Pay Later options as customers are now shopping 10-25% more frequently on an online shopping website if they offer this service.
Buy Now Pay Later has led to increased customer acquisition for e-commerce websites and more and more sellers are now choosing to subsidize customers who use the Buy Now Pay Later option instead of offering direct discounts on products.
Buy Now Pay Later has been shown to affect purchase decisions and consumer behavior if it’s posted up front as the probability of customers buying such products increases greatly.
Buy Now Pay Later option providers are also providing fraud and chargeback risk coverage which greatly reduces the liability on the sellers.
Ubuy Buy Now Pay Later
Ubuy is the revolutionary online marketplace that is taking the e-Commerce space in Kuwait by storm. The e-commerce space has been blown up by the entry of Ubuy and now the company dominates the space, thanks to its awesome deals on every consumer item. Ubuy has been bringing innovations into the e-commerce space and its Buy Now Pay Later Option has made shopping even more affordable and comfortable for customers.
Ubuy has partnered with Tamara to provide Buy Now Pay Later services to its customers which have seen an exponential increase in people purchasing items that they previously would not have. More and more people can now afford the items they need and want, thanks to Tamara.
Through Tamara, Ubuy allows customers to pay for their purchases in installments without having to pay any interest charges. Tamara does not earn from the payments made by the customers, rather its revenue comes from the fees paid by merchants who pay Tamara for its services. The merchants are more than happy to employ Tamara and Ubuy’s Buy Now Pay Later option as it leads to a larger checkout total and bigger cart sizes. More and more people are buying increasingly more items.
Ubuy’s Buy Now Pay Later option has no hidden charges or fees, and no interest is charged on your installment payments. With Tamara, you can split your payment and pay what you want at checkout and then pay the rest of the amount over time. During checkout, the customer may choose to pay after 30 days for the product or in 3 installments and that top, with no additional fees.
Such Buy Now Pay Later service is the main reason Ubuy has become one of the leading online marketplaces in the Middle East and Kuwait especially. More and more vendors are now availing the Buy Now Pay Later trend and this has helped customers to buy all the necessary things without being burdened with the financial difficulties that come with it. You can easily budget and plan your expenses and payments with Ubuy’s Buy Now Pay Later option.