The benefits of offering flexible payment options

What are flexible payments?

Let’s get into what exactly flexible payments are and touch on the types of payment plans before we look at all the benefits.

As the name suggests, flexible payments allow customers to pay for online purchases in instalments. These instalments are typically interest-free and span over a few weeks or months, allowing consumers to pay for something on the spot without paying the full amount immediately. The best part? Your customers can receive their purchased product/s right away.

Here are the different flexible payments most commonly used:

• Buy Now, Pay Later (BNPL): This payment option lets customers split their payments into smaller instalments. For example, PayJustNow offers you three equal interest-free instalments, or Payflex splits your bill into four equal interest-free payments over 6-weeks.
• Long-Term Flexible Payment Plans: This payment plan allows you to offer more long-term and tailored payment options to customers. Payments can be spread out between three to 48 months.
• Payment Plans with Deferred Interest: This is a specialised plan that lets customers pay without any interest during the deferral period. This means customers can pay off the full amount within a certain time to avoid interest charges.

The benefits of flexible payment solutions

Flexible payment options do not just benefit the pockets of online shoppers but also boost sales and improve cash flow. Let’s have a closer look.

Increased sales and conversions

Customers are more likely to complete purchases when they can pay in interest-free instalments. People may not have the means or perhaps did not budget for a huge expense, and these solutions allow them to receive their desired product/service instantly.

So, instead of taking the time to save up or opting for expensive credit card payments, more shoppers are enjoying this flexible solution.

Larger cart sizes

Customers tend to spend more when given flexible payment options. They’ll feel comfortable adding more items than originally planned to their cart thanks to the security of flexible payments.

Ultimately, knowing that they can pay in instalments or at a later date gives shoppers the confidence to shop more freely.

Attracting new customers

BNPL appeals to younger consumers and those without access to debit or credit cards. Offering more than one way to pay opens up the doors to new audiences.

Catering to the different financial needs of shoppers can increase customer satisfaction, encouraging them to return to your storefront. 

Improved cash flow

Businesses receive full payment upfront from BNPL providers, while customers pay in instalments. Receiving the full payment each time a customer uses these flexible payment services means that your cash flow becomes more predictable.

Knowing what to expect allows you to plan better, which is just one of the advantages of steady, predictable cash flow.

Boosts customer loyalty

Once customers know you offer a payment solution that accommodates their budget and financial goals, they’ll end up coming back.

Competitive edge

In today’s competitive eCommerce market, you can gain an edge by adopting flexible payment services that meet customer preferences. Simply put, you offer more appealing payment options than other similar businesses or brands with fewer choices.

This alone can convince consumers to shop with you instead.

It's more convenient

One of the most significant factors in providing flexible payment methods is the convenience they offer for both you and your customers. Services like “Buy Now Pay Later” allow shoppers to split their payments into smaller, manageable portions.

And for your business it’s convenient as you’re guaranteed the full payment of purchases every time.

Economic inclusion

Flexible payment plans help people from different economic backgrounds access products and services they wouldn’t be able to use otherwise. This supports economic growth and also reduces inequality.