Keys to "Buy Now and Pay Later” strategy

Seeing the maturity of electronic commerce, it seemed logical that this type of alternative to payment should also be consolidated. In the end, many of large (and not so big) retailers have been offering this possibility of splitting the purchases made in their stores into several installments for years.

Now that eCommerce is fully established and the end consumer has overcome certain obstacles, the prices of products that are usually purchased have also risen. So, the strategy "Buy Now and Pay Later" makes more sense than ever. 

Something we have been seeing for a few years is that most of the brands have focused on Millennial audience, trying to acquire them on a regular basis. 

Obviously, over time, this segment of population is less and less young. This implies that they are improving in terms of work, so their income level increases progressively.

In addition to having better jobs, they also have new needs due to the change in their life context (they become independent, they have children ...) and, in short, there is a combination of spending capacity and need. 

Both Millennials and Centennials of Generation Z, which comes right behind, are the first batches of digital natives. That is why we see that their relationship with electronic commerce is as natural as that of previous generations with retail. 

Together with maturity, comes the consumption of products of higher price ranges and, whether on a website or in a store, the convenience of financing. 

The key is to make shopping easy. There are some options: basically they are variations that have to do with the amount and the moment we pay. We can distinguish between: 

At Oleoshop we offer our clients Aplázame option, which, as a financial partner, allows both options of payment almost instantaneously and with the minimum amount of effort from your clients. 

Even when not used. Deferred payment means overcoming a negative predisposition before starting the purchase process. 

Imagine that you access an eCommerce searching for a TV or any appliance, just an example of a high ticket. The fact of having a flexible financing system, in which you can even choose your installments and repayment time, already makes you relax. 

Psychologically, seeing a price of € 1,000 is not the same as paying monthly payments of € 30. The unconscious reduces the stress of the price, making the purchase a little less rational and more on impulse (this always favors us).

This is a logical consequence of having greater expense availability in the long term. 

Our clients will have less doubts when considering the purchase of a higher-end product than they had planned (upselling) or completing an initial order with other complementary products (cross selling).

And, let's not lie ourselves, one of the main reasons why carts are abandoned is due to the final price they add. Let's take advantage of the possibility that “Buy Now and Pay Later” strategy gives us to reduce the amount in the short term, and we will make it increase in the long term. 

As we said, shopping experience is very good. In addition, when a deferred payment occurs, something curious happens: somehow, a bond with the customer is created and a situation of reciprocity is generated. 

We are going to explain the latter. When financing, we offer an added differential value. It is important that we are able to transmit the customers  that we are helping them. This will not be forgotten, and these people  will think about our store again as an option for future purchases. 

Furthermore, including financing in our means of payment is something that not all competitors do. This improves our overall competitive position.

This is very important when choosing a financial provider. If we take on the financing internally, we take different risks, such as unpaid and fraud, which can make it financially delicate. 

That is why at Oleoshop we have had Aplázame as a partner in our stores. Not only do they have the financial capacity, but they also have the resources necessary to assess risks and manage payments.

The best thing is that, for stores, there is no difference with the cash purchase: Aplázame makes the total income in one step, and they manage the rest directly with our client.