Buy Now Pay Later…it has arrived in NZ
We take a shallow dive into the “buy now, pay later” payment innovation and why it has been so effective for so many businesses. A quick guide to a new solution that has exploded across Australia and beginning to emerge in New Zealand.
So how does it work ?
Its a payment option that is available at the checkout or ecommerce shopping cart. The solution allows a consumer to receive the product or service immediately and pay over weekly instalments. The consumer pays no more than the purchase price and the merchant is charged a merchant services fee for the solution. The significant change in process flow is that there is no long credit application form and the customer receives the good or service immediately like a standard transaction.
Any good results? Let’s look at the data.
USA solution www.affirm.com who provides a “buy now pay later” product for thousands of merchants and a few million consumers report the following results on their website. Taken as an averge over thousands of merchants across the USA. (online ecommerce only)
10% increase in revenue per customer although the smallest out of the three figures is a pretty intresting number as it shows that the solution not only helps you attract new customers but will drive more revenue from your existing customer base. 75% average order value increase certainly impressed me to.
Some of the larger Australian “buy now, pay later” providers report that merchants have experienced the following (average taken across 3 different ecommerce stores)
32% that statistic is absolutely incredible! The “Buy Now Pay later” payment option has increase sales by almost a third! There has not been many if any products or services I can think of that have created such significant value for business. I have no doubt that the same results will occur in New Zealand with local solutions like www.genoapay.com.
The payment solution is having an powerful impact, driving a number of key metrics for the merchants offering the innovation. There are thousands of retailers experiencing success in Australia with Buy now pay later including some big names like Myers, Country Road and BCF.
So what do the Merchants like about it?
What is important to keep in mind when picking ?
As the solution begins to enter the NZ market we have put together a list of essential components of a Buy Now Pay Later Solution. If you are thinking of offering a solution then look through this list first.
Payment Card Industry Data Security Standard. Although it sounds very boring, this is the standard certification required that ensures that the organisation you are working with can manage your customers credit card data securely. If they don’t have a level of PCI compliance don’t touch the provider.
What happens when a customer’s payment fail? Basic functionality like moving payment days, changing bank accounts or card types? If the provider does not have a NZ based call centre, then what does your customer do and where do they go for help? Buy now pay later is an extension of your business.
Offering Direct Debit
If the buy now pay later provider offers Direct Debit this ensures that your business has access to over two hundred thousand more consumers than the providers offering only major credit or debit cards. Effectively people without credit & debit cards can now shop online and access credit in your store.
Credit and Debit Card
Buy Now Pay Later extends the line of credit available on a credit or debit card allowing consumers to purchase more.
Number of Instalments
The more instalments the lower the price point is to the consumer and more attractive marketing price point is available to the merchant.
Payment Plan Duration
Similar to the above point the longer the duration of plan the more affordable and attractive purchasing over time will be to the consumer.
Easy Integration & IT Support
Do they have in-house integration support and tech team? Make sure they provide rich intergration documentation.
Local or offshore support
Is the company Head Office New Zealand based and is the support and staff training local?
Is the solution mobile friendly and will my customers love using it on the go
Will this work very quickly for my customers in store and online
Buy Now Pay Later will change the way goods and services are sold in New Zealand.
If you have any questions about setting up a solution and how it could work in your store then contact New Zealands Leading buy now pay later supplier
I hope this was useful! Please get in touch if you would like to learn more about what we are doing in New Zealand.
Shaun Quincey CEO, email@example.com