Connect with us


How Is BNPL Technology Helping Publishers Streamline Commerce?

How Is BNPL Technology Helping Publishers Streamline Commerce

When we think about buy now pay later services, e-commerce and retail crosses our mind. Naturally, we assume that BNPL makes most sense when we have to purchase something costly that we can not afford upfront, or split purchase cost for necessities that we can not put off until the payday arrives. 

However, with the growth of Afterpay services, there have been some surprises along the way. From major retailers like Walmart adding prominent BNPLs to its payment options, we now see publishers leveraging BNPL solutions as well. They are mainly doing this to streamline commerce and enhance their revenue streams. Fortunately, the technique is working out quite well! 

Are you wondering how BNPL technology is assisting publishers? Let me break it down for you! 

Improved User Experience 

Retailers are incorporating BNPLs like Afterpay, Affirm and Klarna on their website for enhanced purchasing experience. Previously, readers had to pay the amount in full if they wished to purchase a magazine or a book from a particular publisher. This compulsion to pay upfront often de-motivated readers and some of them backed off from the purchase altogether especially if the cost of the book was high. 

By incorporating BNPL technology, publishers are giving readers a chance to pay over time for their favorite read. They can pay over a course of months or weeks making the purchase more affordable and manageable. This not only enhances customer satisfaction by aligning the purchase process with reader’s financial capacity, but also helps the publisher increase sales. Readers are more likely to be willing to make a purchase when they have the option to pay over time. 

Increased Conversion Rates 

Conversion rate refers to the percentage of people who visit the website and then complete a sale on it. Publishers often face the challenge where visitors abandon carts without completing the payment or finalizing the purchase. As per latest statistics, BNPL technology has greatly helped publishers improve the conversion rates on their websites. 

Cart abandonment is often due to affordability. Customers add items they desire to cart but, once they know about the total expense, they leave the website without purchasing. This is what BNPL technology can help with. By offering the chance to pay with easy installments, publishers make their products more affordable and accessible to a larger number of buyers. 

Some of the most prominent publishers are already using BNPLs to run promotional campaigns in order to incentivise readers and encourage them to complete their purchases. They are promising limited-time discounts and exclusive deals when readers choose BNPL to pay. This technique helps achieve two goals: it attracts more buyers to use BNPL for purchases and it creates a sense of urgency prompting them to buy sooner rather than later. 

Helps Publishers Expand Their Audience Reach 

Buy Now Pay Later options are also helping publishers target new customer segments, especially the ones that may have been hesitant to make a purchase before. They can not more successfully target price-sensitive buyers by allowing them to split payments over time, attracting them to the publisher’s platform and content. 

Another interesting customer segment that publishers can now access is that of Millenial and Gen Z shoppers. These generations are known to prefer flexible payment options and avoiding credit card debt. What buy now and pay later aligns well with their financial requirements. In this way, publishers can capture the attention as well as loyalty of the younger demographics. 

Publishers have their own customer base. On the other hand, each type of BNPL service also has loyal users. By bringing the two platforms together, publishers can make use of cross-promotion and reach new audiences. It is a fool-proof way to drive up sales and revenue.

Easy Way To Monetize Subscriptions  

Publishers often rely on subscription models to generate revenue. BNPLs like Affirm or Afterpay can easily be integrated into subscription offerings to assist in monetizing subscriptions. When users have the option to pay for their subscriptions in installments, it reduces the chances of them canceling their packages with a particular publisher due to financial limitations. 

Moreover, by offering installment plans or deferred payments, publishers can introduce higher-priced subscription tiers or additional content packages to existing subscribers. It increases the average revenue per user and drives additional sales. 

Is There a Hope For The Future When It Comes To BNPL?

It seems like buy now pay later services have a promising future. In fact, the industry has experienced tremendous sales in recent years. Klarna, Afterpay, Affirm, Quadpay, and Zip are some services that have gained popularity among consumers. As more and more consumers get accustomed to this payment mode, the demand for BNPLs is expected to rise even more. 

Furthermore, the rise of e-commerce has been a major catalyst for the success of buy now, pay later. As online shopping attracts a large number of users, BNPL-based purchases will continue to provide buyers with a convenient and flexible way to make purchases without worrying about a restricted budget. Perhaps that is why regulatory authorities are also incredibly focusing on this industry to ensure consumer protection against frauds and scams. Luckily, most of these platforms have done commendable efforts in safeguarding users against fraudulent activities. It does generate additional compliance requirements but, at the same time, it contributes to overall legitimacy and stability of the industry. A well-regulated environment can foster trust and confidence among consumers and merchants, supporting sustained growth of BNPL solutions. 

However, the success of BNPLs depends on various factors. For example, you have to take into account market competition, consumer financial well-being, regulatory developments, etc. Moreover, BNPL providers cater to all types of users regardless of whether they are able to manage credit risk effectively or not. For long term success of any buy now pay later service, it is important that the provider adapts to changing preferences of the consumers if it wishes to consider BNPL as an ideal payment option on its website. They must maintain transparent terms and conditions. Lastly, they should have the capacity to manage potential risks.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Text Translator

Awards Ceremony

Click on the Image to view the Magazine

Translate »