Post by nurnobisorker14 on Oct 30, 2024 5:16:42 GMT
In 2021, a new model of payment for online purchases appeared on the Russian market, allowing you to pay for goods gradually. But without taking out a loan or installment plan. The name of the service is buy now pay later or, in short, BNPL. Every owner of a retail outlet on the global network should familiarize themselves with it.
Contents hide
1) BNPL model - general information about the system
1.1) Example of the buy now pay later model
2) BNPL service and installment plan - the main differences
3) Benefits of BNPL for online shoppers
4) Benefits of BNPL for Business Owners
5) Conclusion
BNPL model - general information about the system
Translated from English, the abbreviation BNPL stands for "buy now, pay later". The main feature of the scheme is that you can pay for goods ordered in an online store in equal installments without concluding a credit agreement. Different methods of direct payment (writing off funds) are supported:
debit and credit cards;
bank transfers (not always).
Restrictions that apply to buyers:
number of simultaneously active debts for financing;
maximum cost of production.
Let's look at the key features of BNPL using the example of the Mokka payment in installments service:
The debt repayment period is always relatively short. Maximum - one year.
The money is provided only for online shopping. It is not possible to get cash or spend it on anything other than online shopping.
All actions are carried out quickly and remotely. There is no need to visit the organization's office, sign paper contracts, present a 2NDFL certificate or other documents.
Even citizens without a credit history, say, students, can use the offer. Just like requests from everyone else, their applications are processed within a couple of seconds.
One of the advantages of the BNPL service "Mokka" is the availability of special discounts on partner trading platforms. Thanks to promotions and special offers, virtual bulk email campaigns shopping with payment in installments becomes even more profitable for Mokka clients.
An example of the buy now pay later model
Let's say you want to buy shoes worth 6,000 rubles on the Lamoda website. In this case, you need to:
add the model of shoes or boots you are interested in to your cart;
on the payment methods page, select the BNPL service;
fill out a simple form in a buy now pay later shopping app, for example, Mocha;
within the next minute, find out the answer (it will appear on the screen, no calls from managers) and choose suitable terms of payment in installments.
Let's say you decide to buy shoes with payment within 6 months. This means that for the next six months you will need to pay 1,000 rubles each month. No hidden fees or other "pitfalls".
BNPL payment services have appeared in the Russian Federation recently. In European countries, they have been successful for a long time. For example, in Sweden, they account for about 20% of all online sales.
BNPL service and installment plan - the main differences
The main thing that distinguishes the “buy now, pay later” system from loans, microloans and installments:
BNPL does not apply to credit products. The creditworthiness of potential clients is not assessed. Accordingly, information about the buyer's desire to pay for the goods in installments is not sent to the credit bureau, and the credit history itself does not change in any way. A standard credit agreement is also not drawn up.
Minimum request review period, measured in seconds, not hours and days. The number of rejected requests tends to zero.
The refund period is relatively short. It must be returned within 1-6 months. The maximum period is 1 year, offered by the Mokka service.
There is no possibility to pay for expensive products, such as a car or real estate. Funds are provided for shopping in clothing and footwear stores, household appliances and jewelry.
The BNPL service can be used to purchase goods that would not be eligible for a targeted loan or installment plan. For example, four or five jars of expensive face cream or several pairs of earrings.
If the buyer delays payment, he is charged a fine for the delay. Just like in the case of bank lending, all sanctions are clearly and pre-determined. There is no need to worry about the emergence of huge debts, as was previously the case with missed payments on microloans.
Increase your sales with Mokka
Benefits of BNPL for online shoppers
Apps with advance payment for purchases are convenient for those who cannot or do not want to pay for the goods in full, but need them "right here and now". Online orders with this system are not only easy, but also profitable and convenient - you do not need to apply for a loan or microloan, discounts are provided in partner stores.
The typical benefits of BNPL services for customers are:
no increase in the price of an individual product or the total cost of all ordered products (moreover, you can often count on a special discount);
the ability to buy and receive goods immediately, and pay for them later in equal installments;
the presence of active debts to banks and microfinance organizations is not a reason for refusal;
the ability to choose the number of contributions (for example, on “Mokka” there can be 1 or 3, or 6 or 12);
no need for an impeccable credit history, collateral and guarantors, documents confirming solvency;
high speed of processing an advance payment (on average, all additional actions take no more than 5-10 minutes);
the presence of a specific debt repayment schedule that prevents confusion about the timing and amounts of payments.
Once you register in the shopping lovers system, you can subsequently use its benefits without re-opening an account.
The positive aspect is that purchasing goods with payment in installments leaves the possibility of returning them under the terms of the Law on the Protection of Consumer Rights.
Connect Mokka and sell more
Benefits of BNPL for Business Owners
The key advantage of the model for online store owners is the ability to increase the average bill and, as a result, monthly profit. According to statistics, clients of payment services in installments spend 30-40% more online than others. Potential and real buyers like using applications with an advance payment, due to the fact that the programs:
offer clear and honest payment schemes for purchases;
do not complicate the order with bureaucratic procedures (as happens when purchasing goods in installments or on credit).
Another advantage is the expansion of the clientele without huge expenses on marketing activities. The list of successful buyers is replenished with those users who do not have the opportunity or do not want to pay the full price of the product now.
Contents hide
1) BNPL model - general information about the system
1.1) Example of the buy now pay later model
2) BNPL service and installment plan - the main differences
3) Benefits of BNPL for online shoppers
4) Benefits of BNPL for Business Owners
5) Conclusion
BNPL model - general information about the system
Translated from English, the abbreviation BNPL stands for "buy now, pay later". The main feature of the scheme is that you can pay for goods ordered in an online store in equal installments without concluding a credit agreement. Different methods of direct payment (writing off funds) are supported:
debit and credit cards;
bank transfers (not always).
Restrictions that apply to buyers:
number of simultaneously active debts for financing;
maximum cost of production.
Let's look at the key features of BNPL using the example of the Mokka payment in installments service:
The debt repayment period is always relatively short. Maximum - one year.
The money is provided only for online shopping. It is not possible to get cash or spend it on anything other than online shopping.
All actions are carried out quickly and remotely. There is no need to visit the organization's office, sign paper contracts, present a 2NDFL certificate or other documents.
Even citizens without a credit history, say, students, can use the offer. Just like requests from everyone else, their applications are processed within a couple of seconds.
One of the advantages of the BNPL service "Mokka" is the availability of special discounts on partner trading platforms. Thanks to promotions and special offers, virtual bulk email campaigns shopping with payment in installments becomes even more profitable for Mokka clients.
An example of the buy now pay later model
Let's say you want to buy shoes worth 6,000 rubles on the Lamoda website. In this case, you need to:
add the model of shoes or boots you are interested in to your cart;
on the payment methods page, select the BNPL service;
fill out a simple form in a buy now pay later shopping app, for example, Mocha;
within the next minute, find out the answer (it will appear on the screen, no calls from managers) and choose suitable terms of payment in installments.
Let's say you decide to buy shoes with payment within 6 months. This means that for the next six months you will need to pay 1,000 rubles each month. No hidden fees or other "pitfalls".
BNPL payment services have appeared in the Russian Federation recently. In European countries, they have been successful for a long time. For example, in Sweden, they account for about 20% of all online sales.
BNPL service and installment plan - the main differences
The main thing that distinguishes the “buy now, pay later” system from loans, microloans and installments:
BNPL does not apply to credit products. The creditworthiness of potential clients is not assessed. Accordingly, information about the buyer's desire to pay for the goods in installments is not sent to the credit bureau, and the credit history itself does not change in any way. A standard credit agreement is also not drawn up.
Minimum request review period, measured in seconds, not hours and days. The number of rejected requests tends to zero.
The refund period is relatively short. It must be returned within 1-6 months. The maximum period is 1 year, offered by the Mokka service.
There is no possibility to pay for expensive products, such as a car or real estate. Funds are provided for shopping in clothing and footwear stores, household appliances and jewelry.
The BNPL service can be used to purchase goods that would not be eligible for a targeted loan or installment plan. For example, four or five jars of expensive face cream or several pairs of earrings.
If the buyer delays payment, he is charged a fine for the delay. Just like in the case of bank lending, all sanctions are clearly and pre-determined. There is no need to worry about the emergence of huge debts, as was previously the case with missed payments on microloans.
Increase your sales with Mokka
Benefits of BNPL for online shoppers
Apps with advance payment for purchases are convenient for those who cannot or do not want to pay for the goods in full, but need them "right here and now". Online orders with this system are not only easy, but also profitable and convenient - you do not need to apply for a loan or microloan, discounts are provided in partner stores.
The typical benefits of BNPL services for customers are:
no increase in the price of an individual product or the total cost of all ordered products (moreover, you can often count on a special discount);
the ability to buy and receive goods immediately, and pay for them later in equal installments;
the presence of active debts to banks and microfinance organizations is not a reason for refusal;
the ability to choose the number of contributions (for example, on “Mokka” there can be 1 or 3, or 6 or 12);
no need for an impeccable credit history, collateral and guarantors, documents confirming solvency;
high speed of processing an advance payment (on average, all additional actions take no more than 5-10 minutes);
the presence of a specific debt repayment schedule that prevents confusion about the timing and amounts of payments.
Once you register in the shopping lovers system, you can subsequently use its benefits without re-opening an account.
The positive aspect is that purchasing goods with payment in installments leaves the possibility of returning them under the terms of the Law on the Protection of Consumer Rights.
Connect Mokka and sell more
Benefits of BNPL for Business Owners
The key advantage of the model for online store owners is the ability to increase the average bill and, as a result, monthly profit. According to statistics, clients of payment services in installments spend 30-40% more online than others. Potential and real buyers like using applications with an advance payment, due to the fact that the programs:
offer clear and honest payment schemes for purchases;
do not complicate the order with bureaucratic procedures (as happens when purchasing goods in installments or on credit).
Another advantage is the expansion of the clientele without huge expenses on marketing activities. The list of successful buyers is replenished with those users who do not have the opportunity or do not want to pay the full price of the product now.
