How BNPL gives customers more purchasing power

The success of subscription commerce models is driven by modern, transparent payment plans and affordable monthly payments. It’s a winning formula for today’s consumers and a source of reliable revenue for businesses. It also lends itself to the success of Buy Now, Pay Later (BNPL) products. But where typical subscription models are based on services, BNPL solutions like Citizens Pay® enrich the equation by adding direct ownership to the model. Successful programs provide retailers with a range of innovative options to meet customers’ needs, specifically by opening up new ways to finance purchases through open lines of installment credit.

Just as subscription programs have positively reshaped many businesses, products like Citizens Pay are proving to be a competitive advantage for retailers. Retailers who offer POS financing have seen a 75% increase in average order value, 25% more repeat business by customers who use POS financing and an impressive 32% increase in overall sales

Easy, fixed monthly payments are at the core of why subscription services and BNPL programs appeal to customers, whether it be streaming media, software, consumer electronics or home furnishings. Monthly payments make purchases more affordable and they give customers a reassuring picture of how their budgets will be impacted.

With BNPL, customers get ownership from day one, with clear payment terms and over a set time period, and often with low interest rates. The model makes purchases more accessible and gives customers more buying power to purchase the items they love, as well as inspires upgrades and add ons. Promoting low monthly payments can help drive higher conversion rates and AOV by increasing the affordability of products and services.

The model works across a wide range of categories including consumer electronics, specialty retail, home furnishings, travel and more. Retailers considering a BNPL solution should look for a provider that offers a broad set of product capabilities, is focused on seamless customer experiences and offers strategic support that best aligns with the retailer’s objectives. If a retailer is bundling a product and subscription service, it is especially important to partner with a BNPL such as Citizens Pay that can accommodate such purchases.

One of the core benefits of subscription services is convenience, which is a critical piece of the consumer value proposition for today’s consumers. It’s increasingly important to develop unique experiences based on how customers want to pay, which is simply and seamlessly.

Retailers can’t afford to add friction into their sales process, and consumers have no appetite for a multi-step process to gain access to credit. The subscription model brings the customer closer to the brand and deepens their engagement by turning a single purchase transaction into an ongoing relationship.

Similar to popular subscription service models, it’s important to prioritize a frictionless POS experience in addition to easy-to-use registration and an application that can be completed in a few clicks. Retailers using a subscription model should select a BNPL product, like Citizens Pay, which has vast experience and the right product type to support subscription sales.

Early Citizens Pay partnerships with merchants such as Microsoft pioneered the "device as a service", which successfully added ownership to the subscription-based business model. And made it easier and more affordable for consumers to purchase the products they desired.

Citizens Pay provides brands with a powerful opportunity to be very strategic about their POS lending and be at the forefront of digital innovation that is focused on really meeting customer needs. Citizens Pay has a fully digital omnichannel customer experience that provides customers with an instant credit option to use across all sales channels, whether online or in-store. As a fintech within a national bank, Citizens Pay is able to offer more customers higher credit lines and lower rates at reduced costs. Citizens approves more customers, delivers tremendous offer flexibility, and provides unmatched enterprise account expertise and management.

Visit Citizenspay.com to discover how Citizens Pay can help improve the customer experience and grow sales for your business.