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With the consumer's spending increasing in the first quarter of the year, as well as internet-based shopping continuing to expand across all age groups Merchants are facing both greater opportunities and competition to the dollars of consumers. That means looking for new ways to cater to the demands of customers and giving them more opportunities to buy from your brand or site. The best place to begin is with the checkout processlooking for opportunities to streamline this important last step of the sale, and also provide the option of payment to your customers that will enhance their satisfaction.

One trend that has quickly gained popularity in internet-based purchases includes the "Buy Now and pay Later" (BNPL) alternative during the time of checkout. BNPL is an alternative payment method that allows shoppers to divide the price of their purchase into low-cost installments which are divided over time- in some cases in a couple of weeks or in other cases, over several months.

Buy now, pay later is gaining popularity

Many consumers are taking advantage of pay-over-time options in the event that they become accessible. In 2023, merchants on the internet witnessed a substantial increase in purchases made with BNPL which saw volume rising 42.5 percent over the previous year. In the end, BNPL placed around $16.6 billion in sales onto merchant books in the last couple of months of the year alone which is a trend Adobe anticipates will last until 2024.

About 93.3 million people are predicted to utilize BNPL in 2024 according to EMarketer, and American Banker reported that the BNPL market in the US could reach as much than $8.3 billion in 2028. BNPL is being embraced increasingly by internet-based retail giants like Amazon.com -- which will further accelerate its growth and making the option far more popular with consumers who shop online.

That makes BNPL an option that merchants can't ignore as they compete with a growing online market.

Offer buy now and pay later: Things to think about

The addition of BNPL choices at checkout earlier rather than later gives merchants a greater chance to win new customers and establish a long-term connection.

For merchants that don't yet offer the BNPL option during checkout, this could be the best opportunity to introduce one into the list of options. In the case of merchants that do offer it, placing the BNPL option more prominently on their websites, specifically when you check out, or promoting the availability of the option through advertising can help to distinguish their brand and improve the shopping experience for their customers.

The more prominent the BNPL option is on an online store's website, and the sooner they advertise the service via email and social channels, the more likely customers would be interested in learning more, which can help the merchant bring shoppers on their site and close the deal.

BNPL can help merchants expand their appeal to customers who want to purchase items now, but want to control the flow of cash without credit. With the ability to split the price of a purchase into, for instance, four installments of interest-free payment each two weeks, buyers can get what they need without delay. A few BNPL service providers, including Affirm, also offer longer time options that span several months up to 3 years for carts with large sizes and high-ticket items.

While adding yet another payment option to the back end of an online store may seem daunting for smaller merchants already pressed for time However, there are alternatives that are quick and simple installation that will simplify all the steps for both the seller and merchant. For example, merchants can often benefit from pre-built ecommerce integrations, for instance the AffirmPayments extension, to easily add the BNPL option to their current checkout page.

The upside of offering buy now and pay later your Woo store

What benefits can the BNPL integration provide? First, an integration streamlines the purchase process for the growing variety of shoppers who prefer to pay over the course of time. Keeping consumers on your site and moving towards checkout is crucial, particularly for younger shoppers who are accustomed to online commerce. In fact, The National Retail Federation reports that more than 50% (46 percent) of Gen Z respondents consider a smooth checkout process essential for their shopping experience.

An important consideration for the integration is the experience for the shopper. It's important that the customer is able to view their options for payment and complete the approval process without needing to navigate to a different website. Through an integration that is pre-built, businesses make the process as direct and easy as they can for the shopper, so the choice doesn't get in the way of making a sale.

A smooth checkout experience could assist in reducing abandonment of carts. A recent Baymard Institute metastudy of 49 research reports revealed that the cart abandonment rate remains at around 70, and hasn't changed markedly over the past decade. Among the top reasons for abandonment: A checkout process that was lengthy or complicated (22 percent of times) and also the site was not offering enough payment options (responsible for 13% of cart abandonments). Through the tightly-integrated BNPL system, merchants are able to tackle both these customer concerns at once.

Which is the best buy today, pay later service

The choice of a BNPL provider that aligns with your needs as a business and with customer needs is essential in determining the best match. Affirm, for instance, Affirm provides custom payment options for merchants- these can include both long- and short-term options as well as zero-interest options. By offering payment options that align with the needs of customers and standard price points, merchants are able to increase the affordability of shoppers and potentially win a sale over competitors.

Another feature unique to Affirm is their Adaptive Checkout technology, which dynamically offers the most relevant ways to pay your customers depending on the item's cost and price of your cart. Personalization is the theme of the game online, Affirm can tailor the length and the APR of each purchase, thereby providing a variety of appropriate options for paying over time to the customer, in one frictionless experience.

What are you doing to inform your current and potential customers know about the BNPL option before checkout? Based on the market you are targeting it is possible to think about promoting the offer on social media sites. Retail Dive reports that 85% of consumers' purchasing purchases are affected via social media. So advertising the possibility of offering BNPL through these platforms could give you a competitive edge. If you're targeting Gen Z be aware that 45% of respondents identified TikTok as well as Instagram as their top social media platforms influencing their purchasing decisions.

As summer can be a slow season for companies There's a chance for retailers to work on getting BNPL operational on their websites, ahead of the Back to School rush signals the start of the hectic weeks leading to winter holidays. It offers a chance to think carefully regarding vendors, resolve any issues with technology and launch the marketing efforts to announce the launch of BNPL as a new payment option that can be used at the check-out.

The availability of a BNPL option during checkout, and publicizing it on social media could change the game for merchants looking to capture higher online spending and beat out the competition.

Are you ready to include flexible payment options to your payment process? Apply for Affirm for a start and use the Affirm Payments extension for the option of pay-over-time at your payment process.

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*Payment options through Affirm will be subject to a credit check, may not be available all over the world, and are offered by the lending partners listed below: affirm.com/lenders.