There’s been a significant rise in the use of Buy Now Pay Later (BNPL) products, allowing diligent shoppers to pay off purchases in easy instalments. Merchants reap these benefits with higher purchase conversions, upsells, and an increase in the purchase of high-end goods.
New Zealand-founded BNPL Genoapay allows shoppers to access both retail and services, spreading payments over 10 weeks. The 10-week split is easy for customers to understand – purchasing a $499 pair of Beats by Dre headphones from Harvey Norman may be unattainable for some shoppers, but $49.90 per week over 10 weeks may well make that product accessible.
Shaun Quincey, Latitude’s General Manager Buy Now Pay Later and Genoapay’s founder, says when it’s time to integrate a BNPL with a retailer’s ecommerce site, they should begin by looking at the average ticket spend.
“Think, ‘What’s the average cost of what I’m selling to the market and would it improve the likelihood of my converting customers if they didn’t have to pay that all at once?’ And if the answer is yes, of course it would, because you want to access people who can afford to pay, just not all at once.”
Quincey recommends retailers consider which bigger-ticket products they might increase sales of, and whether they could increase the range of bigger-ticket products stocked. He says that retailers partnering with Genoapay should consider promoting products with a ticket of around 10 times their average transaction size.
For example, if a retailer has an average transaction of $60, partnering with Genoapay means it can promote a product of $600 as, with Genoapay’s help, its shoppers are likely to be comfortable paying the item off with 10 weekly payments of $60.
“The multiple of 10, people understand,” Quincey says. “The impact is really similar to that of interest free.”
When integrating Genoapay with your ecommerce store, it’s a matter of installing a simple plug-in on your Shopify and WooCommerce website. Genoapay is also developing a plug-in for ecommerce platform Magento.
Retailers can then sit back and relax and can track their sales across multiple ecommerce websites on a single dashboard provided by Genoapay.
Importantly, Genoapay takes a 4 percent fee per merchant sale, which is low compared to its competitors and pays merchants within 48 hours. Genoapay takes on any consumer finance risk, and only charges purchasers a percentage fee on defaulted payments.
To integrate Genoapay with an ecommerce website on Shopify, the process is simple. First, a merchant can email or call Genoapay to get started. An application form is then filled out, taking approximately 5 minutes.
Merchants are then sent simple instructions to allow Genoapay to set up the integration via the Shopify platform. Voilà, it’s now up and running and ready for shoppers to make purchases!
A bonus for retailers when offering Genoapay is that a link to the ecommerce shop is also showcased on Genoapay’s store finder. This index makes it easy for Genoapay users to find what they’re after, knowing they can pay off the goods in 10 weekly instalments.
Retailers can be assured that the process for customers is also as easy. Genoapay is free to sign up for, subject to credit checks. For Genoapay users who wish to shop offline, the platform is also available for retailers at the POS in-store. A list of these retailers can be found here.
It’s clear that using payment products like Genoapay help lower the barrier to purchase conversions, as well as enabling retailers to reap the rewards of repeat business. The integration system for the retailer is simple, as is the sign-up process for the customer, making it a win-win situation for both parties.
This story was created with the support of Gem powered by Latitude.