What are Buy Now Pay Later apps?
Credit card use has drastically decreased despite formerly being the primary method of payment due to high-interest rates and shrinking credit limits. Now enter Buy Now Pay Later services, which provide small, short-term credit with low to no interest rates on the payment installments, as well as fewer (though still somewhat controversial) credit checks.
These apps include but are not limited to:
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Clearpay
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Klarna
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Apple Pay
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Shop Pay installments
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PayPal
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Afterpay
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Affirm
If you incorporate these into your
Shopify or Shopify Plus store, customers will have the choice of using any Buy Now Pay Later method you provide in addition to choosing a credit card, debit card, or gift card as before to buy your products. When Buy Now Pay Later is chosen, the payment gateway will ask them to complete a credit application. After that, the provider will run a mild credit check. The customer accepts a term with the Buy Now Pay Later provider if allowed (typically 3 to 4 payments). They then shop at your store, order whichever product they desire as before, and repay the loan to the lender over the course of the loan's term through their account portal.
How does integrating Buy Now Pay Later affect store performance?
Online cart abandonment rates are currently at 68.8% on average. The Baymard Institute claims that the majority of these customers leave because of the exorbitant prices, and 9% even mention that there aren't enough payment choices. Therefore, expanding the available payment options through Buy Now Pay Later can provide flexibility for customers and help
improve conversion as they are less concerned with spending a lot of money all at once, benefitting from the security of shopping and paying for items on their chosen payment plan terms and budget.
What are the Advantages of Using Buy Now Pay Later?
A significant advantage of Buy Now Pay Later is the option for financing flexible payments. Customers can use the Buy Now Pay Later service to pay the entire purchase amount, or they can divide it up into installments that split the cost to suit their needs best. What’s more, these instalments are usually without fees and also interest-free if paid back on time.
Another benefit of Buy Now Pay Later is that it helps customers without credit cards get an equal footing. About 20% of consumers do not have a credit card, and the majority of those who have (55%) have maxed out at least one of their card balance. Many of the advantages of a credit card are also available with a Buy Now Pay Later service, but only for smaller, individual purchases. By getting a virtual card number in advance of your purchase, you can even use a Buy Now Pay Later service like a credit card.
A final plus for adding Buy Now Pay Later for customers is that credit is unaffected by soft credit checks. To confirm that their customers are eligible for loans, the majority of Buy Now Pay Later suppliers to perform mild credit checks on them. This won't harm credit score or credit history, in contrast to a hard credit check which is something that can put off prospective customers.
Adding Buy Now Pay Later to Your Shopify Store
Different Buy Now Pay Later services can be easily and quickly added to Shopify. A Buy Now Pay Later provider can be added to your checkout in a few simple steps:
1. Go to Settings, then click Checkout.
2. Click on "set up a payment gateway".
3. Select "buy now pay later".
4. Fill out the form with your merchant ID
5. Click Submit.
Best Buy Now Pay Later Apps for Shopify in the UK
Shop Pay, a native Buy Now Pay Later app, is available on Shopify. Shop Pay enables retailers to offer Buy Now Pay Later to their customers while still getting paid in full for their goods. The following other Buy Now Pay Later options are integrated with Shopify, so retailers are not restricted to using Shop Pay:
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Klarna
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Clearpay
•
Afterpay
•
Affirm
•
Splitit
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Charge Me Later
Naturally, your
Shopify Plus store is also compatible with
PayPal. Customers are redirected through the PayPal app when using PayPal, and the company offers more services than just Buy Now Pay Later which is a bonus.
Klarna
Klarna is one of the leading global payments and BNPL shopping service, providing smarter and more flexible shopping and purchase experiences to 150 million active consumers across more than 450,000 companies and merchants in 45 countries. Klarna offers direct payments, pay after delivery options and instalment plans in a smooth one-click purchase experience that lets consumers pay when and how they prefer to.
Clearpay
Clearpay is a payments platform built to enable financial wellness for the next generation of shoppers by allowing customers to split their payments into 4 interest-free instalments- making their first payment at the point of checkout, and the rest over 6 weeks. Clearpay can be implemented with a variety of preexisting shop platforms like Shopify, WooCommerce, or Wix; or can be implemented from scratch using their API.
Afterpay
AfterPay is a digital payment platform offered to online shoppers that allows them to delay payments on purchases. Users can make weekly payments on items purchased until they are paid in full. No credit check is required to use AfterPay, and no interest payments are charged. Customers can sign up for a free AfterPay account, shop at select online retailers, and then use AfterPay to make purchases.
Affirm
Affirm gives your customers a smarter way to pay over time, with no fees or surprises. With Affirm, you can offer flexible payment plans to expand your customer base and increase average order value. Customers have the choice to make 4 interest-free payments every 2 weeks with no interest or fees, no impact on their credit score and with easy to setup, automatic payments. This is great for everyday purchases. Customers can also choose an option for monthly payments with no hidden fees, perfect for big-ticket items.
Splitit
Splitit is the only installment payment solution allowing shoppers to use their existing credit card at checkout, so there’s no need for them to take out an additional line of credit. With Splitit, customers don’t need to fill out any applications or navigate to a third-party website to get approved. It all takes place in the retailer’s checkout flow just like any other credit card purchase, with one extra step – choosing the number of installments. Unlike other BNPL providers that provide point-of-sale loans, Splitit is a technology platform that works within the existing credit card system. All a shopper needs is a credit card with available balance for the full purchase amount.
Charge Me Later
Charge your customers whenever needed-
Charge Me Later is a BNPL app that allows all or explicit clients to arrange quickly, and charge them at whatever point you need e.g NET30. Send order invoices manually or automatically to the customer to allow them to pay through Shopify checkout whenever required. Charge Me Later facilitates wholesale groups and custom pricing, allowing businesses and partners to create discount client gatherings, assign custom estimating to every item/variation, set custom costs according to client gathering.
Conclusion: What is the best Buy Now Pay Later App in the UK?
So now we’ve dived into what Buy Now pay Later apps are, how to integrate them into your
Shopify store, and listed a hand-picked selection of the best Buy Now Pay Later apps for Shopify and
Shopify Plus stores, it’s time to choose which is best for your business. A variety of factors need to be considered when deciding which app to go with, such as whether your store is B2C or B2B, how readily available you require inflow of funds, the size of your store, the industry your business operates in, and the demographic of your customers.
Since Shop Pay is the native Buy Now Pay later app for Shopify stores, we’d recommend using this
payment gateway first for maximum compatibility and fluency of the customer experience Of course, integrating multiple Buy Now Pay Later apps can only bring better choice and flexibility to your customers, so we do recommend adding a few options to your store if you’re not restricting yourself just to one app!
Klarna is the most widely used Buy Now Pay Later app on the ecommerce marketplace with millions of active users across a large range of demographics, making this BNPL app a must-have for Shopify stores looking to integrate more flexible payment gateways for customers to improve the likelihood of sales, conversions and
increase average order value. As for the others, Clearpay is also great choice for merchants and brands who want to use custom API's within the checkout to create a more powerful customer experience. For wholesalers, Charge Me Later has some fantastic B2B features that can't be found with other apps. We hope you enjoyed this guide on our top Buy Now Pay Later Apps for Shopify UK, and trust it has answered your questions and given you enough information to help you review and decide which is best for your Shopify store so that you can
scale your store and sales volume effectively.
Need help integrating Buy Now Pay Later apps for your ecommerce or Shopify store? We are experts with Shopify developers at hand to help get your Shopify business maximise engagement and conversion.
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