Why Every PrestaShop Store Needs a Buy Now, Pay Later Option

Let’s say your customer has reached the product page, added the product to the shopping cart, but just before completing the successful payment, they hesitate. Not because they don’t adore the product, but because they’re pinching pennies this week. Then they bounce. It’s a lost sale, and, unfortunately, it’s all too typical for e-commerce.

But imagine if you could eliminate that hesitation with just one simple fix?

That’s precisely what the Buy Now, Pay Later (BNPL) structure achieves. You know it’s not just a fad, it’s one of the fastest-growing payment methods globally. It is a great option for e-commerce stores (specifically those on platforms like PrestaShop) to help reduce cart abandonment, boost conversions, and make customers happy.

In this blog, we’ll discuss: What is BNPL? How it’s rapidly growing, why it synergizes with solutions like the cart abandonment reminder module, and how customer data from BNPL usage upholds the argument of customer tracking.

What is Buy Now, Pay Later?

Buy Now, Pay Later is a payment method that lets consumers buy a product now and pay for it in monthly installments over a course of time, typically without interest if paid off on schedule. Unlike credit cards, BNPL does not require a credit line or lengthy approvals.

The model is often available from third-party resellers such as:

• Klarna
• Afterpay
• Sezzle
• Affirm
• PayPal Pay Later

For example, let’s say a customer would like to buy a $100 pair of sneakers in your store, but only has $25 at the moment. With BNPL, they can pony $25 now and the rest of the payments over a couple of weeks.

Why BNPL Is Exploding in E-Commerce

The dramatic surge in BNPL is no accident. It’s powered by the evolution of consumer behavior, particularly among Millennials and Gen Z, who are averse to debt, skeptical of credit cards, but who still desire instant gratification.

Here are a few salient statistics on why it does:

In 2021 alone, use of BNPL shot up 215%, according to Adobe.

According to Klarna, 68% of BNPL users say the service is helping them improve their financial management.

Merchants that adopt BNPL experience a 30% lift in conversion and an increase in average order value.

Clearly, BNPL is no longer a “nice-to-have,” it’s obligatory.

How BNPL Addresses Cart Abandonment

Thousands of potential orders are lost every day because customers freeze at the till. The good news? This is where BNPL comes flying to the rescue.

By giving customers the option to split their payments, BNPL offers a way to eliminate the immediate financial burden, making it considerably easier for the customer to click “buy now.”

Top that off with a cart abandonment reminder module (which emails or otherwise pings users who have left items in their cart) and you have a one-two punch to die for. The module reminds them. BNPL allows them to do so.”

This dynamic duo works particularly well for high-ticket or impulse purchases with high deliberation.

Real-World Example

Here’s a closer look at Afterpay, one of the players in the BNPL space. A beauty brand on Afterpay experienced a 22% lift in checkout conversion rate and a 35% lift in average order value.

When people were given the chance to pay over time, they were more inclined to buy bundles and larger-size products. Afterpay also delivered marketing exposure by enlisting the brand in its marketplace, a bonus traffic referral.

It’s a model that has reliably extended across sectors: fashion, tech, health, and even home decor.

Significance of Customer Tracking in the BNPL Path

Any intelligent e-commerce company knows that tracking customers is essential to staying ahead. Why? Fair, because understanding your customers’ behavior is the key to serving them better and selling more.

BNPL doesn’t just facilitate sales, it grants crucial data points:

• Who’s using installment payments?
• What kinds of products are easier to buy through BNPL?
• How many people ditch their cart but come back on a reminder of BNPL choices?

These Learnings enable you to customize your marketing, generate targeted product recommendations, and improve the checkout funnel.

For instance, if data indicates that your customers who are 25 to 35 are the biggest “Buy Now, Pay Later” users, then you can run a targeted campaign that puts the benefits of “Pay in 4” front and center.

Customer tracking can also help decide if BNPL users are more loyal or bigger spenders. This data can empower marketers to make strategic moves, think about loyalty, and even upselling.

How to Add BNPL to Your PrestaShop

With a range of off-the-shelf modules available at a few clicks of a button, it’s easy for PrestaShop retailers to add BNPL choices. Here are four of the most pervasive:

Klarna Payments for PrestaShop

Provides Pay Now, Pay Later, and Slice It with Klarna options. It’s great for European merchants and has an intuitive UI.

Sezzle - Buy Now, Pay Later by Sezzle

Enables shoppers to split payments into four interest-free installments. Great for U.S.-based stores.

Afterpay Module for PrestaShop

Easy and seamless access to the global Afterpay network. It suits fashion and lifestyle brands particularly well.

PayPal Pay Later

If you already use PayPal, turning on Pay Later is a no-brainer. The fact that it has PayPal’s trust factor and broad global reach behind it.

Integration Steps:

• Download the module from the Prestashop Addons marketplace.
• Use your merchant details to set up the plugin.
• Personalize the front-end messaging to promote the BNPL offer (such as “Pay in 4 interest-free installments”).

Advantages of BNPL for Your Business

In addition to obvious uplifts in sales, here’s why BNPL is a great marketing weapon for PrestaShop vendors:

More First-Time Buyers

New customers are also more willing to buy if we have reduced the amount they have to commit to up front.

Lower Bounce Rates

Flexible payment options cut down on customers’ time on site and the likelihood they’ll leave.

Improved Cash Flow

Many, if not most, BNPL providers pay you the entire sum upfront and chase the customer for installments themselves.

Higher Customer Lifetime Value (CLTV)

Customers who are happy using BNPL come back and use it again, generating long-term value.

Final Thoughts

BNPL isn’t just a convenient way to pay for things; it’s a revenue nudge, a conversion generator, and a modern answer to an age-old e-commerce issue: cart abandonment.

This second-hand and when adapted properly on tools such as PrestaShop, it helps merchants serve more clients, more flexibly, in a more satisfactory manner. Combine it with clever tools such as a cart abandonment reminder module, and you’ve got a selling point that can be hard to resist.

In the changing landscape of online shopping, providing BNPL isn’t just good business; it may also be necessary.

Frequently Asked Questions (FAQs)

1. What is Buy Now, Pay Later (BNPL)?

It’s a payment alternative that allows customers to pay in installments with no interest.

2. How does BNPL help minimize cart abandonment?

It simplifies the purchase decision because it reduces the up-front cost for the buyer.

3. Am I able to use BNPL with my PrestaShop store?

Yes, some PrestaShop modules like Klarna and Afterpay indeed offer BNPL.

4. Why does tracking customers matter with BNPL?

It aids in determining buyer behavior and optimizing marketing efforts for improved conversions.