Who benefits most by offering BNPL's (Afterpay Klarna etc)? these are the top 3 industries that see the largest impact from my experience at Stripe... 👚Fashion and Apparel (think Clothing, Shoes, Accessories) Increased Sales: Retailers often see an increase in overall sales, sometimes by as much as 30-50%. Higher Average Order Value (AOV): Customers tend to purchase more items or opt for higher-priced items, leading to an increase in AOV by 20-30%. Improved Conversion Rates: Shoppers are more likely to complete their purchases if they have flexible payment options, reducing cart abandonment rates. 📲 Electronics and Gadgets (items like: Smartphones, Laptops, Gaming Consoles) Boosted Sales Volumes: Offering BNPL can lead to a 25-40% increase in sales volumes. Higher AOV: Consumers are more inclined to buy premium models or additional accessories, boosting AOV by 30-50%. Enhanced Customer Loyalty: Customers who have a positive BNPL experience are more likely to return, increasing customer retention rates. 💄Beauty and Cosmetics (this one might be obvious) Increased Customer Acquisition: BNPL can attract new customers, especially younger demographics, increasing customer base by 20-30%. Higher AOV: Shoppers are more likely to add more products to their cart, increasing AOV by 15-25%. Improved Repeat Purchases: Satisfied customers tend to make repeat purchases, boosting lifetime customer value. If you're not offering BNPL's because of "cost" just know you're missing out on revenue! #Stripe #Payments Stripe #BNPL #Buynowpaylater
An excellent blog post by Raisa Ahmed on the impact of Buy Now Pay Later (BNPL)! In short, enabling BNPL as a payment option drove remarkable financial gains for businesses. In sessions where BNPL was available, companies experienced up to a 14% surge in revenue. This substantial increase was fueled by two powerful effects: 1) Heightened Conversion Rates: Customers were more likely to complete their purchases when they could utilize a BNPL payment method. 2) Elevated Average Order Values (AOV): Shoppers not only converted at higher rates, but they also spent more per transaction when BNPL was an option. In essence, providing a BNPL payment choice unlocked a significant revenue boost for businesses, as it simultaneously enhanced both the probability and size of customer transactions. This blog demonstrates the compelling impact BNPL can have on a company's bottom line.
