Take the Ownership of BNPL Strategies in the Fintech Ecosystem
How merchant-owned payment and BNPL solutions can transform business dynamics.
In today’s fast-paced digital market, where global e-commerce sales passed $5 trillion in 2022, merchants face the challenge of maintaining competitiveness while providing frictionless payment experiences that drive customer loyalty. A landscape where data-driven insights and ownership of payment experiences are paramount.
Taking ownership of payment solutions and Buy Now, Pay Later strategies can strategically position merchants to regain control of their customer base, optimize costs, and enhance user experiences.
Owning payment solutions and embracing BNPL strategies empowers merchants to control customer relationships, optimize operational costs, and create superior user experiences. This approach also unlocks the potential for data-driven insights, enabling targeted marketing efforts and enhanced customer retention.
Merchants regain control over customer interactions and data by directly managing payment solutions. This enables the creation of personalized experiences and targeted marketing efforts. Additionally, owning the payment process facilitates tailored loyalty programs, fostering stronger connections between merchants and consumers.
Third-party payment processors often incur transaction fees that eat into merchants’ profits. These fees can account for up to 3% of the transaction amount. Merchants can significantly reduce these costs by adopting in-house solutions. This financial efficiency empowers businesses to reinvest in growth-focused strategies, driving innovation and market expansion.
Streamlining the payment journey is essential for an enhanced user experience.
Owning the payment and BNPL solutions allows merchants to customize processes, offering multiple payment alternatives and ensuring a seamless checkout experience. This user-centric approach drives customer satisfaction, trust, and repeat business.
In the past year, 60% of merchants have added new payment methods to their online checkout. Most retail and travel merchants had to raise prices to cover transaction fees, underscoring the financial impact of third-party processors.
Owning payment solutions offers merchants the flexibility to innovate and adapt. As trends emerge, merchants can integrate new features and functionalities, ensuring customers can access the latest conveniences. This agility positions merchants as industry leaders, driving engagement and customer loyalty.
An often-overlooked benefit of owning payment data is the potential for refined customer segmentation. By leveraging payment data insights, merchants can better understand customer behavior, preferences, and buying patterns. Businesses using advanced data analytics for segmentation experience up to a 30% increase in customer retention. This information empowers businesses to tailor marketing efforts, improve customer retention strategies, and identify upselling opportunities effectively.
Most merchants consider maintaining control of the customer relationship a significant challenge, revealing the desire for ownership. This concern extends to BNPL providers, often requiring merchants to relinquish control. The BNPL market is rapidly growing, with an expected market size of $596.7B by 2026. However, merchants and consumers express complex attitudes towards BNPL providers, citing concerns about affordability checks and over-reliance.
By embracing BNPL strategies and partnering with fintech companies, merchants can offer flexible, brand-based installment options that drive trust, customer loyalty, and increased spending.
With ethical, data-backed approaches, merchants can regain control, provide superior experiences, and achieve financial success in a rapidly evolving payments ecosystem.
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