How to address the BNPL payment challenges Now, not Later!

I recently explored challenges for merchants with buy now pay later (BNPL) solutions that are currently on the market. High rates of credit approval declines and the high cost for merchants, at 3-7% on top of normal credit card processing fees, were the biggest concerns.

To help address the BNPL challenges merchants face, just this month we launched our own BNPL solution – ACI PayAfter – to ensure merchants can make the most of the BNPL hype-train that’s attracting so many consumers. Here’s what merchants should be looking for and doing when it comes to BNPL solutions.

One integration

Customers will have a better BNPL experience if merchants offer multiple options of BNPL lenders through one integration. 

For example, bringing together a diverse network of more than 70 prime, near-prime, and sub-prime lenders under one offering means merchants can select the BNPL providers most relevant to their customers, per Payments Dive, so they can start offering the payment method faster. It also reduces the complexity and cost of integrating BNPL solutions. As such, merchants can enjoy higher consumer approval rates which will in turn increase sales and revenue.

With one integration, one contract, and one vendor relationship, merchants will benefit from the ease of access and reduced costs.

Simplifying consumer experience to increase acceptance rates

Offering several BNPL solutions stacked side by side at checkout can often cause confusion and even cart abandonment. Merchants should create a smooth and simplified payment experience for consumers by offering one button at checkout.

Merchants should also offer a single consumer credit application process to simplify the consumer experience and increase acceptance rates. If consumers only need to fill out one credit application, but get access to a host of BNPL lenders integrated within one solution, it drastically increases the possibility of credit approval. In fact, merchants can expect to see up to 85% acceptance rate and a higher average ticket price when their BNPL offering includes prime, near prime, and subprime lenders.

By providing just one BNPL option at checkout, the inconvenience of completing multiple loan application forms is removed. Our service then matches consumers with the BNPL options best suited to their needs. The transaction will go to the first BNPL provider, and if that lender declines, the transaction will go to the next provider—and so on. With a single unified BNPL solution, consumers have a much-increased chance of being approved for their purchase, and an option to be approved for an even larger purchase, now or in the future.

Enhance the BNPL performance

By ensuring a better checkout experience for consumers, and a higher possibility of consumer credit approval, merchants will see some important performance improvements. After all, all the modern consumer wants are frictionless payment experiences. So, beyond the uplift BNPL already offers merchants, they can expect to see a considerable rise on checkout conversion and a higher average ticket if they provide exactly what the modern consumer wants – simplicity.