In a world where shopping is just a click away, buy-now-pay-later (BNPL) options have surged in popularity, making it all too tempting for shoppers to load their virtual carts with goodies—who doesn’t love the idea of owning something today and paying for it later? But, wait a minute! While customers revel in this financial flexibility, what about the merchants footing the bill? With transaction fees ranging from 2% to 8%, store owners face a critical question: is the increase in sales worth the higher costs? This article delves into that very dilemma, exploring how BNPL can boost profits—as well as the costs involved. Strap in, because the numbers might just surprise you! If you’re eager to dive deeper into this fascinating topic, you can LEARN MORE.
Buy-now-pay-later options offer shoppers a convenient, flexible, and often low-cost way to finance purchases, but merchants may pay relatively steep transaction fees.
BNPL is popular, and customers likely spend more when it is available. The downside to merchants is the cost, typically a 2% to 8% fee for BNPL transactions versus roughly 3% for payment cards alone.
With fees as high as 8%, store owners must ask whether the additional sales from BNPL are worthwhile. The short answer is probably “yes,” although reminiscing and math will make it more clear.
Free Shipping
Fast and free shipping has become a staple of the ecommerce industry. For some online segments, such as fashion and toys, free shipping is a competitive requirement and an ante to participate. Yet years ago, merchants worried that shipping costs would break them.
