- This flexible payment solution also doubles up as a highly effective marketing tool for you as a retailer to build your brand equity. Improving brand equity means increasing the value of your brand in the minds of your consumers.
- White-labeled BNPL solutions put the merchant in the driver’s seat and enable them to retain the customer relationship and data.
- If you are looking to deepen your customer relationships, you can implement white-labeled BNPL online and in-store.
by Yaacov Martin
With ecommerce sales showing no signs of slowing down, both online and brick-and-mortar retailers are under unprecedented pressure to rise above the crowd. The competitive marketplace might throw a wrench in the works of merchants, but Buy Now, Pay Later (BNPL) can help you change the course of your retail business.
BNPL is based on a simple idea that allows consumers to split their purchase price into equal, often interest-free installments. This flexible payment solution also doubles up as a highly effective marketing tool for you as a retailer to build your brand equity. Improving brand equity means increasing the value of your brand in the minds of your consumers. As a result, you can welcome loyal customers.
Here are some ways that indie retailers can leverage BNPL solutions to build better brand equity and reap the rewards:
Use a White-Labeled Solution
Although BNPL services have a common function of breaking up the purchase cost, we cannot put all of them in the same basket. For example, with many direct-to-consumer BNPL providers, shoppers are frequently redirected from the merchant’s checkout to the BNPL provider’s own website to create an account. At this point, the merchant loses control of their customer relationship. Even though the consumer has been through the retailer’s journey, ultimately, it will be a third-party BNPL provider that gains the customer’s data and future remarketing opportunities.
White-labeled BNPL solutions, however, put the merchant in the driver’s seat and enable them to retain the customer relationship and data. Offering shoppers the option to pay in installments over time under your brand name ensures they associate your store with convenience and flexibility — which can ultimately lead to an increase in customer loyalty.
Offer Both Online and In-Store BNPL
In-store BNPL is perceived as a value-added service by consumers and is an important part of the merchant’s tactile brand experience. If you are looking to deepen your customer relationships, you can implement white-labeled BNPL online and in-store. The pay-over-time offering would be in your brand and not for a third-party provider’s brand.
Providing a consistent financing experience online and in-store is crucial to building brand equity, as consumers expect similar offerings and experiences across all retail channels. Let’s say you only offer BNPL in your online store. A shopper sees an item online but decides to buy it in your physical store. If the customer is not offered the same financing options in-store as well as online, your brand equity and customer loyalty could be harmed.
Optimize Consumer Approval Rates
Higher BNPL approval rates mean a positive financing experience for the customer, which in turn translates to stronger brand equity for you, the retailer. One way to maximize consumer approval rates is to ‘complement’ any current financing offers with other forms that may be more suitable to consumers who do not qualify for your existing offers.
Leverage BNPL Programs From Banks
If you ask customers what the most essential factor is when choosing a BNPL provider, 53 percent of them will say that it is trust, according to a recent PYMNTS report. Implementing a bank BNPL program allows merchants to build consumer trust and, therefore, brand equity. Banks, with their centuries-long experience in lending and solid balance sheets, are synonymous with trust. With impending regulation, BNPL options from regulated financial entities, such as banks, are experiencing increased demand by merchants and consumers.
Provide a Seamless Global Experience
Global merchants face the challenge of offering a consistent POS financing experience across all their global markets while also complying with all local regulations. By partnering with a BNPL provider that has a global presence, these merchants can provide a unified BNPL experience to all customers in any international market. A global provider can also facilitate relationships with local lenders.
The global BNPL market will only continue to grow. In fact, it is expected to reach a value of $656.34 billion in 2026. By offering these in-demand installment payment methods, retailers can increase their sales and also build better brand equity.
Yaacov Martin is the CEO and Co-Founder of Jifiti.