Is “Buy Now, Pay Later” the New Era of eCommerce?

From increasing business opportunities to allow more customization, there are several reasons why the ‘buy now, pay later’ tactic is bringing eCommerce into a new technological era.
Opinions from leading industry experts.

Is “Buy Now, Pay Later” the New Era of eCommerce?

What is one reason why the “buy now, pay later” tactic is bringing e-commerce into a new technological era? If you disagree, explain why.

To help you understand important considerations for the “buy now, pay later” tactics for e-commerce businesses, we asked business professionals and leaders this question for their insights. From increasing business opportunities to allow more customization, there are several reasons why the “buy now, pay later” tactic is bringing eCommerce into a new technological era.

buy now pay later

Access to Higher Volume Purchases

As an eCommerce business, it is smart to utilize the buy now, pay later feature, in our case, we use Affirm. We see the value in having this feature for higher volume purchases.

At Sahara Case, we provide premium, durable smart device accessories at affordable prices. Since our accessories are not high-priced merchandise, the buy now, pay later feature is very beneficial for clients wanting to place larger orders on our site, and can thus open more opportunities for our business and our customers. 

Peter Babichenko, Sahara Case

Increase Business Opportunities

Buy now, pay later opens up opportunities for more business transactions. In the past, brick-and-mortar stores would do layaway, so it only made sense to translate this same benefit for a better eCommerce experience for our customers.

So while this isn’t new to the retail industry, it offers a greater user experience on our platform. The more payment options you can offer your customers the more likely they are to buy and come back for more.

Vanessa Molica, The Lash Professional

Create Payment Tracking

The “Buy Now, Pay Later” pay structure has been around since the late 1800s/early 1900s when credit and tabs came into play. Why it is bringing e-commerce into a new tech era is only because the entire exchange is occurring online with virtually no promises on either side.

The use of AI tech has helped to create tracking so customers are able to be held reliable if payment does not occur. But the entire idea is not a new concept and is not bringing eCommerce into a new era. It already existed.

Olivia Young, Conscious Items

Overcome the Fear of Missing Out (FOMO)

The payment delay period is not some sort of new marketing ploy or anything of that sort. It is simply a matter of fact that some people are not responsible for their money for one reason or another.

Paying later gives them the opportunity to save up some money first, have the item shipped to their home, and then pay for it over time. This way, they don’t have to worry about losing their items if they don’t have the money to pay for them. Although this concept of paying later is not new, the technology that is being used to implement it is. This is why it is bringing eCommerce into a new technological era.

Chris Panteli, LifeUpswing

Focus On the Buying Experience

For most people, the most “painful” part of a purchase is when they have to say goodbye to their hard-earned dollars.

With the “buy now, pay later” tactic, you delay this experience which in turn makes clients much more likely to disregard the spending of the money and better focus on the benefits from their purchase.

Considering the way websites like Amazon and Walmart design their checkout experience, making payments when you’re checking out optional can further improve the checkout experience, make it even faster and reduce checkout friction.

Mor Hasson, Maple Hosting

Reduce Abandoned Carts

Offering consumers the opportunity to have their purchases in hand without paying off the entire amount has completely changed the face of eCommerce. When customers once had to rely on credit cards with high-interest rates or paying in full, some may have opted to abandon their carts and skip the purchase entirely after seeing the final price of their would-be purchases.

But instead, technological advances have brought other buying opportunities to the table, which has consumers making even larger purchases, when the offer for “buy now, pay later” is included. As you can see, it really is a win-win for everyone concerned!

Lauren Kleinman, The Quality Edit

Open Opportunities for Larger Purchases

A recent study showed that 56% of American consumers have opted to use the “buy now, pay later” option during one or more purchases. This is a phenomenal example of how technology is providing more opportunities for e-commerce customers to buy the products that they want and need.

Rather than relying on cash or traditional credit cards, this method actually encourages consumers to not only make purchases ahead of when they may have, should they pay with funds on hand, but the likelihood of the purchases being larger also increases.

Lindsay McCormick, Bite

Provide More Options

Just like with shipping options, customers now have options when it comes to how and when they pay.  Empowering the consumer is usually a good tactic for growth and “buy now pay later” is a great example of that – we’ve seen good success with it!

Sylvia Kang, Mira

Allow More Customization

Buy now, pay later is a definite upgrade over legacy lending models where clients had to pay for purchases using their savings or take up loans. The plan allows for more customization over other payment options, typically allowing customers to choose the number of payments and payment schedule.

Furthermore, the buy now, pay later plan does not charge interest, instead, penalty fees are charged on late payments, saving buyers from the high costs of loans charged by financial institutions.

Sam Santa, Zeitholz

Use Natural Language Processing

Technological innovation is one of the main factors responsible for making the buy now, pay later (BNPL) tactic a viable business model. That being said, the BNPL tactic has also ushered in a new era of applying natural language processing (NLP) technology into e-commerce activities.

NLP technology can provide incredible insights about customer behavior, which eCommerce owners can use to get a better understanding of what customers want, allowing them to model their products and sales strategies accordingly. Application of NLP technology in product development, marketing, sales, and customer service activities will resoundingly assist eCommerce businesses to maximize sales conversions, and consequently, revenues.

Eric McGee, TRGDatacenters

This article is written in collaboration with Terkel. It is a platform where business leaders can answer questions related to their expertise and get published in articles featuring their insights.

What is one reason why the “buy now, pay later” tactic is bringing e-commerce into a new technological era? If you disagree, explain why.

To help you understand important considerations for the “buy now, pay later” tactics for e-commerce businesses, we asked business professionals and leaders this question for their insights. From increasing business opportunities to allow more customization, there are several reasons why the “buy now, pay later” tactic is bringing eCommerce into a new technological era.

buy now pay later

Access to Higher Volume Purchases

As an eCommerce business, it is smart to utilize the buy now, pay later feature, in our case, we use Affirm. We see the value in having this feature for higher volume purchases.

At Sahara Case, we provide premium, durable smart device accessories at affordable prices. Since our accessories are not high-priced merchandise, the buy now, pay later feature is very beneficial for clients wanting to place larger orders on our site, and can thus open more opportunities for our business and our customers. 

Peter Babichenko, Sahara Case

Increase Business Opportunities

Buy now, pay later opens up opportunities for more business transactions. In the past, brick-and-mortar stores would do layaway, so it only made sense to translate this same benefit for a better eCommerce experience for our customers.

So while this isn’t new to the retail industry, it offers a greater user experience on our platform. The more payment options you can offer your customers the more likely they are to buy and come back for more.

Vanessa Molica, The Lash Professional

Create Payment Tracking

The “Buy Now, Pay Later” pay structure has been around since the late 1800s/early 1900s when credit and tabs came into play. Why it is bringing e-commerce into a new tech era is only because the entire exchange is occurring online with virtually no promises on either side.

The use of AI tech has helped to create tracking so customers are able to be held reliable if payment does not occur. But the entire idea is not a new concept and is not bringing eCommerce into a new era. It already existed.

Olivia Young, Conscious Items

Overcome the Fear of Missing Out (FOMO)

The payment delay period is not some sort of new marketing ploy or anything of that sort. It is simply a matter of fact that some people are not responsible for their money for one reason or another.

Paying later gives them the opportunity to save up some money first, have the item shipped to their home, and then pay for it over time. This way, they don’t have to worry about losing their items if they don’t have the money to pay for them. Although this concept of paying later is not new, the technology that is being used to implement it is. This is why it is bringing eCommerce into a new technological era.

Chris Panteli, LifeUpswing

Focus On the Buying Experience

For most people, the most “painful” part of a purchase is when they have to say goodbye to their hard-earned dollars.

With the “buy now, pay later” tactic, you delay this experience which in turn makes clients much more likely to disregard the spending of the money and better focus on the benefits from their purchase.

Considering the way websites like Amazon and Walmart design their checkout experience, making payments when you’re checking out optional can further improve the checkout experience, make it even faster and reduce checkout friction.

Mor Hasson, Maple Hosting

Reduce Abandoned Carts

Offering consumers the opportunity to have their purchases in hand without paying off the entire amount has completely changed the face of eCommerce. When customers once had to rely on credit cards with high-interest rates or paying in full, some may have opted to abandon their carts and skip the purchase entirely after seeing the final price of their would-be purchases.

But instead, technological advances have brought other buying opportunities to the table, which has consumers making even larger purchases, when the offer for “buy now, pay later” is included. As you can see, it really is a win-win for everyone concerned!

Lauren Kleinman, The Quality Edit

Open Opportunities for Larger Purchases

A recent study showed that 56% of American consumers have opted to use the “buy now, pay later” option during one or more purchases. This is a phenomenal example of how technology is providing more opportunities for e-commerce customers to buy the products that they want and need.

Rather than relying on cash or traditional credit cards, this method actually encourages consumers to not only make purchases ahead of when they may have, should they pay with funds on hand, but the likelihood of the purchases being larger also increases.

Lindsay McCormick, Bite

Provide More Options

Just like with shipping options, customers now have options when it comes to how and when they pay.  Empowering the consumer is usually a good tactic for growth and “buy now pay later” is a great example of that – we’ve seen good success with it!

Sylvia Kang, Mira

Allow More Customization

Buy now, pay later is a definite upgrade over legacy lending models where clients had to pay for purchases using their savings or take up loans. The plan allows for more customization over other payment options, typically allowing customers to choose the number of payments and payment schedule.

Furthermore, the buy now, pay later plan does not charge interest, instead, penalty fees are charged on late payments, saving buyers from the high costs of loans charged by financial institutions.

Sam Santa, Zeitholz

Use Natural Language Processing

Technological innovation is one of the main factors responsible for making the buy now, pay later (BNPL) tactic a viable business model. That being said, the BNPL tactic has also ushered in a new era of applying natural language processing (NLP) technology into e-commerce activities.

NLP technology can provide incredible insights about customer behavior, which eCommerce owners can use to get a better understanding of what customers want, allowing them to model their products and sales strategies accordingly. Application of NLP technology in product development, marketing, sales, and customer service activities will resoundingly assist eCommerce businesses to maximize sales conversions, and consequently, revenues.

Eric McGee, TRGDatacenters

This article is written in collaboration with Terkel. It is a platform where business leaders can answer questions related to their expertise and get published in articles featuring their insights.

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Zohaib Javed has extensive experience of circa 5 years in content creation. The blend of academic background in technology and a rich experience in writing allows him to write about Artificial Intelligence, Big Data, and other emerging technologies.

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