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  Buy Now, Pay Later (BNPL) is a very challenging type of FinTech to set up in Nigeria. There are various BNPL platforms in Nigeria. And in recent times, there have been low approval ratings for the BNPL industry. There are a plethora of problems facing BNPL platforms as there are, however, fees for missed payments, late payments, or payments rejected for insufficient funds. According to TechNext, BNPLs are interest-free instalment loans for small, short-term purchases. They operate on similar models to those employed by organizations to give out electronics and household items to workers to recover the amounts in bits over a specific period of time. Consider it like paying for a dishwasher in instalments, but instead of putting it on hold until the whole amount is paid, users take it and pay later. Here’s what merchants should be looking for and doing when it comes to BNPL solutions.
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  1. Single Integration
Single integration is one of the best solutions BNPL platforms can develop to make customers enjoy the use of their platforms. Single integration is when BNPL platforms offer multiple options of lending programs into one integration. For instance, a BNPL platform can bring together various networks of more than 70 prime, near-prime, and sub-prime lenders under one offering. This implies that merchants can choose the BNPL providers most relevant to their customers, per Payments Dive, so they can start offering the payment method faster. Furthermore, it lessens the complexness and cost of integrating BNPL solutions. Therefore, sellers can enjoy higher consumer approval rates which will, in turn, increase sales and revenue. With one integration, one contract, and one vendor relationship, vendors will benefit from the ease of access and reduced costs.
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  1. Streamlining Consumer Experience To Increase Credit Approval Rates
Customer Experience matters a lot when it comes to BNPL. Designing a platform that offers various BNPL solutions stacked side by side at checkout can often confuse a customer and even lead to cart abandonment. This is why merchants must develop a seamless and simplified payment experience for customers by providing a one-button at checkout. Furthermore, merchants need to provide a single consumer credit application procedure to streamline and simplify the consumer experience and increase approval rates. If consumers only need to fill out one credit application, yet have access to a host of BNPL lenders integrated within one solution, it quickly heightens the odds of credit approval. Through this, merchants can anticipate seeing up to an 85% acceptance rate and a higher average ticket price when their BNPL offering includes prime, near-prime, and subprime lenders. With this singular design, the complication of completing multiple loan application forms is removed.
  1. Enhance The BNPL Performance
By guaranteeing a favourable checkout experience for consumers, and a higher likelihood of consumer credit acceptance, merchants will see some important performance improvements. After all, all the modern consumer wants is a frictionless payment experience. So, beyond the raise BNPL already offers merchants, they can expect to see significant growth in checkout conversion and a higher average ticket if they provide exactly what the modern consumer wants – simplicity. Featured image source: PYMNTS.com
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This article was first published on 9th March 2022

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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