BNPL’s Pitch To Merchants Goes Beyond Installment Plans To Deep Data Dives

Buy now, pay later (BNPL) providers can offer small- and medium-sized businesses (SMBs) much more than the ability to offer installment payment plans. These companies also can help merchants draw customers to their organization in the first place and close sales that may not have happened otherwise. 

Indeed, PYMNTS research found that about 61 percent of SMBs say that customers are willing to switch to merchants that provide BNPL options and that BNPL allows for sales that would not take place in its absence. 

Read more: CFO’s Guide To Digitizing B2B Payments

Why? BNPL providers can offer a convenient way for customers to pay for purchases and an integrated marketing and payments solution. 

In the September Buy Now, Pay Later Tracker, PYMNTS reports on the ways BNPL providers are helping their merchant partners. 

See more: Buy Now Pay Later Plans Help Parents Stock Up on Back-to-School Necessities

Bring New Customers 

Installment payment plan providers can directly promote their merchant partners in various ways, boosting traffic and brand awareness. They can offer consumers deals, offers and other calls to action. The BPNL provider can deliver these via its own mobile app, promotional emails, social media, special events and other forms of direct customer interaction. What’s more, these offerings are powered by BNPL firms’ consumer data and analytics capabilities, so they are highly targeted and customer-specific. 

Increase Consumer Trust 

A merchant’s affiliation with a BNPL can serve as a stamp of approval. Major BNPL providers have built extensive networks of retailers that serve as merchant curation platforms. This grants their in-network businesses credibility and trust with BNPL users. 

Provide Extensive Data 

BNPL providers collect a vast amount of customer and transaction data and pair that with advanced analytical capabilities. This enables them to generate deep insights into consumer behavior. When they share this data and analytics with their partners, the merchants can better understand what consumers are buying and which ones are buying which products. Equipped with this data, merchants can capitalize on insights into buying trends, prioritize their supply chains and execute inventory decisions. 

Drive Additional Sales 

Most omnichannel and brick-and-mortar SMBs believe BNPL plays a significant role in driving sales. The PYMNTS research found 57 percent of SMBs believe that BNPL will account for an increasing share of sales. Installment payment plans are gaining popularity for both online purchases and in-person shopping. Sixty-eight percent of omnichannel SMBs and 32 percent of offline-only SMBs said they believe an increasing share of sales in the segment will take place through BNPL options. 

SMBs may perceive costs, hassles or other barriers that discourage them from climbing on board with BNPL. But many see that U.S. consumers are more interested in this payment option than they were just one year ago. Add to that payment flexibility the data insight capabilities and market potential available to merchants, and SMBs can find great value in partnering with BNPL.