From prehistoric systems of barter and trade to simple forms of currency, and paper cheques to little plastic cards, it is evident that payment methods are constantly evolving. The modern rise of new alternative payments methods (non cash methods of transaction) such as E-wallets, digital currency, mobile payment methods and so forth can be seen as a new chapter in the world of payments. Alternative payment methods (APMs) are now predicted to take a 59% share in all e-commerce transactions in 2017. An example of an Alternative Payment Method that is changing the e-commerce industry are Buy Now, Pay Later schemes.
The increased popularity of Buy Now, Pay Later (BNPL) schemes such as Afterpay and ZipMoney have created new opportunities for savvy e-commerce stores. Consumers are able to pay for their goods with instalments over a period of time while retailers receive payment on the day of the purchase with all credit and fraud risk taken on by the relevant BNPL scheme.
In particular, the flexibility of Afterpay has attracted a large amount of consumers, holding a 10% share of all transactions in the Australian online fashion market and a 2.1% share in the online retail market. Various retailers, such as Veronika Maine and General Pants Co have stated that their average order value increased by 22-25% after introducing Afterpay.
What can you do?
By offering BNPL schemes such as Afterpay and ZipMoney, you not only capture potential customers but also increase the amount and value of goods they purchase. ZipMoney observed an increase in average order values of between 40%-130% (where zipMoney is the chosen form of tender) and a 40% increase in items per order.
How can Paydock help?
Paydock enables e-commerce stores to offer both APMs and traditional payment methods to their consumers. Paydock customers can now snap up more customers and generate additional sales through BNPL schemes with ease through our API.