With the passage of time it is no longer news when a new payment method comes onto the Market. Although payment methods like Klarna may still sound like a novelty an estimated 15 Million adults of all ages are using this form of credit. This shows an increase of 2 million from last years statistics.
Evidently, BNPL is growing rapidly with its popularity skyrocketing in the UK during 2020 — and it is doing so from a low base: it still only represents about 2 per cent of the ecommerce market globally, and about 1 per cent of Britain’s credit market.
How do Buy Now Pay Later companies work?
BNPL companies tend to enter into partnerships with retails who generally will pay a small percentage of each sale made through their commerce, this is usually 2% to 8% of the purchase amount. There are also options of fining late payments or interest rates for the sums that customers will borrow.
When it comes to business prospects, these can vary across the board, however some merchants have noticed immediate business results that can reach up to 5%+ increase in sales conversions, 30%+ AOV growth, and 20% more repeat business.
The rise of BNPL means more consumers appreciate the convenience of paying for their purchases in more manageable instalments.
So far, the lack of regulation so far has helped BNPL firms grow rapidly and keep costs down; when tougher rules are brought in, profit margins will be squeezed.
Why choose CREDITONLINE BNPL software?
In order to ensure smooth administration of BNPL credits, a reliable BNPL management system is required for BNPL providers. Our system has been recognised by financial sector professionals and guarantees loans are issued easily and quickly to make sure your business excels.
Some benefits of our software include:
- Customisable configuration of our BNPL administration system. Our system is simple and easy to use, employee training will also be provided by our team of experts.
- Flexible and fast configuration when new products or business processes are introduced. At CREDITONLINE we believe it is important to use systems that grow with your business.
- Reduced risk thanks to an integrated automatic client scoring system helping you and your team make better decisions.
Save time and money thanks to our automated software that allows for fast loan decisions.
If you would like to find out more about CREDITONLINE's BNPL Loan management system and how it can support your business, please contact our team or book a free demo.