How to Communicate the Benefits of BNPL to Your Customers
It’s no secret that 2020 was a tough year for consumers and retailers alike, and the impact of the pandemic has left shoppers more cautious than ever.
This knock-on effect has also changed how consumers shop in a variety of ways – from an increase in online purchases, to curbside pickup services such as click-and-collect becoming more popular.
Another rapidly growing trend is Buy Now Pay Later (BNPL) - a flexible payment option now offered by thousands of online retailers at checkout which allows customers to pay for their goods at a later date in instalments. At Clearpay, for example, we reported a +47% year-on-year increase in new U.K. customers from 2019 to 2020 during our peak trading season.
BNPL options such as Clearpay are always interest free, and free from fees when instalments are paid on time. This makes it super simple for customers to pay for their purchases in a more flexible way. At Clearpay, the cost of a purchase is split into four instalments which are deducted automatically every two weeks from the card used at checkout.
This trend is believed to have been shaped largely by younger shoppers, particularly those from Generation Z (those born between 1997 and 2012/15). According to Clearpay's report with The Future Laboratory, for these consumers, cash is no longer king and fluid; seamless and fast ways of spending - that allow shoppers to save time and track their money using their phone - are favoured. Gen Z also use their mobiles to do most of their shopping so they want the ability to pay seamlessly across platforms.
The report also highlights the way that Gen Z view their financial wellness which is vastly different to their Baby Boomer parents who were more comfortable with the idea of credit. Gen Z were coming of age just after the financial crisis of 2008 where they saw first-hand how it impacted the worlds of work and finance. This has left them pragmatic about money, preferring flexibility to long-term contracts and commitments (such as credit cards).
BNPL payment options like Clearpay are therefore a desirable option as they allow users to easily manage their spending by splitting the payment into manageable instalments and quelling any anxieties about the month ahead.
Transparency is also of major importance so many retailers registered with Clearpay help their customers to feel in charge of their finances by advertising the instalment price against the retail price. This leaves no room for confusion and helps shoppers make a considered and quick decision.
Put simply, a growing number of customers are looking for ways to shop with trusted retailers who offer greater flexibility – especially at checkout. By offering BNPL payment options, you can help your customers feel in charge of their finances, attract repeat custom, and allow them to shop in a way that works for them.
If you’d like to find out more about the benefits of Clearpay, schedule a meeting with one of our Retailer Team Members today at sales@clearpay.com.
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