Even before COVID-19 destabilized household budgets for millions of people, the market for buy now/pay later solutions was projected to be on track for a compound annual growth rate (CAGR) of 28% worldwide through 2023, according to PYMTS.com.
One online retailer that implemented a buy now/pay later solution as the COVID-19 shutdowns began, I AM BECOMING (IAB MFG), saw a 54% increase in Average Order Volume (AOV) and a 50% increase in its add-to-cart rate since implementing the ViaBill solution in March. Specifically, AOV rose from $48 to $74, and 15% of customers paying with ViaBill chose to add products to their carts, versus 10% for customers who did not choose the delayed payment option.
Shoppers pay no fees or interest charge to have their payments divided into four equal parts through ViaBill. They make the first payment at checkout and the subsequent three payments monthly. Retailers are charged 2.9% plus $0.30 per transaction. Retailers are paid up front and ViaBill assumes credit and fraud risk.
“Now more than ever, we recognize the need for more flexible payment options,” said Thomas Patterson, CEO of IAB MFG in a statement. “We’ve been pleased to see consumer confidence translate to larger basket sizes and increased buying frequency with ViaBill’s help.”