Business operations online are highly competitive today, so companies are striving to provide all the features they can to their customers; one such feature is Buy Now, Pay Later, which has helped businesses acquire more customers. Over the last few years, Buy Now Pay Later services have become increasingly popular among eCommerce brands. It is a win-win situation for both the customer and the business when Buy Now Pay Later services are offered by the company. Essentially, it lowers the barrier to entry for customers interested in buying products by spreading payments out over a few months and increasing sales conversions for businesses.
Shopify merchants who want to add a Buy Now Pay Later service to their store can choose from a few different options. But how do you know which BNPL service provides to choose out of all the available options? So in this article, we will discuss five Best Buy Now Pay Later apps for Shopify Stores.
What Is Buy Now Pay Later, and How Does It Work?
Buy Now Pay Later(BNPL) is an installment loan that allows you to pay later. Consumers can make purchases and then pay for them later with this type of short-term financing. The BNPL process is generally structured as an installment loan involving consumers, lenders, and merchants. The first payment is due during checkout before the remainder of your purchase is divided into multiple equal payments. Your debit card or credit card will be billed for the remainder of the payments until the purchase is completed.
The Buy Now Pay Later app allows you to make an online purchase and pay it off in weekly, bi-weekly, or monthly installments. There can be a certain period during which these apps do not charge interest, similar to a credit card. In the case of a prepayment, you will not be charged interest if you pay off your balance before the end of the period. There is usually a very high-interest rate associated with BNPL. BNPL typically breaks down a purchase into four equal installments, with the first one due at checkout and the remaining three after two weeks. BNPL typically breaks down a purchase into four equal installments, with the first one due at checkout and the remaining three after two weeks.
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Advantages Of BNPL For Customers
No Hard Credit Check
Most BNPL apps will only conduct a hard credit check as part of the account opening process. Keeping your credit report inquiries under control is important since too many inquiries can negatively affect your credit score. The approval process for some BNPL apps includes a soft credit pull, which does not affect your credit score. Still, they’re usually more easily qualified than credit cards.
The BNPL can be a good deal if you take advantage of interest-free offers and pay off your balance on time. You won’t have to pay interest on your purchase, and you’ll be able to receive your purchase immediately without worrying about paying.
Convenient And Fast
The convenience of BNPL apps is undeniable. No separate applications or processing time is required for BNPL services. With many online retailers, payment options are built-in, so entering your information is almost as simple as entering your address.
Flexible Payment Options
Most BNPL services have options available to consumers at the point of sale. Customers can pay parts of their purchases using BNPL and other payment methods, such as debit cards, as well as paying the total purchase price using BNPL.
Does Shopify Allow BNPL Services?
In the above sections, we understood what BNPL exactly is, and the potential benefits businesses and customers get. But does Shopify allow BNPL services?
Apart from that, businesses can use various apps besides Shop Pay to provide BNPL services to their customers.
Store owners can integrate and add Buy Now Pay Later Shopify integrations into the checkout process of their online stores, enabling customers to pay in installments and purchase their products using Buy Now Pay Later.
What Is The Best Buy Now Pay Later Service For Shopify?
Shop Pay Installments
Shop Pay is a Buy Now Pay Later Shopify service in partnership with Affirm. The Shopify BNPL partner, Affirm, uses the same network of lending partners. With the Shop Pay Installments, merchants can offer their customers an interest-free payment plan while still receiving full payment at the time of purchase, using Shopify as their eCommerce vendor. BNPL benefits, such as higher average order values and lower cart abandonment rates, are available to small businesses online with ShopPay. Due to the ease of integration, you won’t need to worry about technicalities or nuances of the app’s management. Getting started and managing the Shopify BNPL service is far easier as compared to other BNPL integrations.
The Afterpay service was one of the first BNPL services to be introduced into the market. Shopify’s integration with AfterPay makes it easy for you to set it up and make it seamless for your customers. Besides being able to browse brands that use the AfterPay service, customers also have access to a marketplace where they can browse brand vendors, which can drive a good deal of traffic for many brands. Moreover, it offers a virtual card service that is easy to use and provides consistent reminders to make payments. When you make your payments on time, Afterpay does not charge late fees, unlike other BNPL services.
Klarna is one of the low-cost options among the other BNPL options. The company offers a feature that lets customers try products before they pay, so you are using the app before making any payment to the company. Klarna pays its merchant before collecting the payment from its customers, unlike other apps. Additionally, it’s easy to set up and use because it integrates directly with Shopify. Therefore it is easy to get started with it.
Sezzle is among the youngest of the BNPL services on the list. Using Sezzle, customers can push back their payment due dates to 2 weeks later. Sezzle allows customers to reschedule payments or increase their credit limits compared to other apps. You will need to integrate it into your store using a custom code or Hire Shopify Developer since they aren’t available as Shopify apps and cannot be; hence you can not integrate with Shopify directly. Regarding the app’s cost, Sezzle is quite expensive compared to most of the BNPL services.
Paypal is one of the most popular payment apps for processing payments, accepting payments for selling items, and sending money to friends and relatives. Apart from that, it also acts as a BNPL lender. Pay in 4 is an excellent way to make large purchases more affordable by paying them over time through PayPal. In addition to the interest-free payments every two weeks, you can also pay it off early if you wish. PayPal works with millions of online stores, so it’s a great alternative to credit cards or other BNPL services.
How To Choose The Right BNPL App For Your Shopify Store?
After checking out various BNPL apps, here comes the time to decide which one you should buy for your Shopify store since each app has pros and cons. In terms of BNPL services, ShopPay is the best recommendation since it is an easy-to-integrate option, so you won’t have to worry about technical details.
As a business, you might also consider offering more than one option in your store so customers can pick which works best. In that case, you could go with AfterPay or PayPal’s Pay in 4. Make sure the customer is calm, and you make things simple when you’re looking to offer more options. You can take advantage of these services for a relatively low cost, lowering the barrier to purchase and allowing your eCommerce store to expand. Consider testing these if you would like to increase your conversion rate and average order value!
The Buy Now Pay Later has been benefiting businesses greatly and helping them create a competitive advantage. With the changing times, nearly all businesses will have to provide BYPL services to their customers as it will become necessary for retaining them. To effectively run these services, businesses will have to take care that they’re using the right BNPL app to provide the best services to their customers.
If you are wondering “How To Add Buy Now Pay Later on Shopify,” our Shopify experts at Huptech Web can help you integrate the best BNPL service with your emerging eCommerce store. To know about our working process and support, check out our services or reach us to get assistance from top Shopify developers managing your store or building your Shopify store from scratch.