Retail Business & Buy Now, Pay Later

Buy now, pay later (BNPL) gives merchants a powerful boost to their bottom lines. It helps them drive new customer acquisition, higher average order values (AOV) and repeat purchases.

In a time when consumers have a lot of choices and customer-centricity is paramount, BNPL has become a key engagement tool and there’s a simple explanation for its success: today’s consumers want access to alternative payment methods and better checkout experiences.

The draw for many merchants is that BNPL can be launched as an easy to implement off-the-shelf solution. And from consumer electronics to high-end jewelry, there seems to be limitless possibilities when it comes to retail categories. Knowing and understanding your customers, however, is very important. With a product field that is rapidly evolving, research is vital to get a good sense of how a solution will align with your business’ needs and affect your brand reputation. 

Whether consumers are shopping for a smartphone, home entertainment center or gaming system, consumer electronics is a consistently strong retail category for BNPL. It directly appeals to customers' desires to upgrade technology that will improve their lives.

In this category, finding a solution that offers customization and flexibility is very important, alongside finding a financial partner who has experience in consumer electronics. It’s imperative to be able to offer a variety of programs that make upgrades and different feature configurations possible. It’s also necessary to be able to finance higher price points and to permit customers to use their pre-qualified credit amounts over multiple days without having to apply again — similar to a revolving line of credit.

When making upgrades at home, customers want to invest in quality and they are more likely to make multiple purchases, if they have a straightforward financing option to back them up.

This is one of the highest growth areas for BNPL. It’s important to focus on customers’ needs and recognize that shoppers are often purchasing multiple items, or constantly adding items to their cart, and might also choose to return later to pick up something else that they saved for later. This is where having payment solutions like a BNPL line of credit option is very beneficial, as it allows customers to simply log in and access their account without having to fill out another application.

When home gyms became a must-have during the COVID-19 pandemic, BNPL’s affordability and straightforwardness helped convert many website visitors into customers.

Higher carts sizes are a given in this category so it’s necessary to have flexible payment terms that make sense over long periods of time.

As travel regains its popularity, bookings are on the rise and BNPL is making it easier for customers to plan, reserve and pay for their dream vacations or rebook the trips they’ve postponed.

A BNPL solution with clear and upfront monthly payment plans make it easier and more affordable for customers to opt for hotel, flight or package upgrades

Big box retailers have turned to BNPL to meet the wave of demand for new ways to pay for items such as televisions, appliances, home furnishings and much more. Because of the constantly revolving range of offerings, customization is key for tailoring a solution that can be easily integrated and updated as demand changes. 

Additional BNPL industry verticals that are seeing impressive growth include lifestyle and luxury retail, cosmetics, elective healthcare, and educational experiences.

For many retailers, loyalty will emerge as the pivotal factor in realizing a BNPL solution that delivers on long-term growth. Getting customers in the door is one thing, but giving them a reason to come back again and build upon superior brand experiences, is another.

Citizens Pay has partnered with a number of retailers including Apple^®, Microsoft^® and BJ’s Wholesale Club^® to develop custom BNPL solutions that have helped shape the modern BNPL experience and have led the way in how brands can best serve customers via POS financing.

With the support and strength of a regulated bank, Citizens Pay helps boost brand reputation and trust. Citizens Pay also leverages deep digital expertise and experience in consumer finance to build solutions that can be easily integrated and fully customized with a range of payment and checkout options to meet today’s customers’ needs. 

Businesses that have partnered with Citizens Pay are more successful in engaging their customers, building better long-term relationships and creating a purchasing experience that drives positive sales results.

To learn more about how Citizens Pay can help upgrade your brand’s customer experience, visit citizenspay.com.