Buy Now Pay Later – Customer Credit Limit Extension
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Micro credits is not a new concept. Whether it be the world of online or offline shopping buyers have loved the idea to shop on credit ( buy now pay later). Ever since the advent of credit cards, online shopping became easier and trouble-free. The hassle-free shopping that involves not making payments at the very instant was loved by many and gradually began increasing in popularity.
In the initial phases, of course, people were skeptical about using credit cards as a payment option but the sheer convenience of it made it the new normal in practically no time.
Shopping today is all about the entire experience of it and what could be better than having to not pay then and there. Pay Later options tend to encourage impulsive buyers to shop guilt-free.
With advancement in the field of ecommerce the concept of ‘Buy Now Pay Later’ has taken a new face. Cardless pay later options have been introduced by several online marketplaces. The latest to join the bandwagon has been Flipkart.
The ‘Buy Now Pay Later’ feature of Flipkart is similar to paying through credit card in many ways with certain differences. The ecommerce giant is now allowing customers to buy products without paying for them immediately. The amount is billed by the 10th of every month.
The concept has already been put to practice by several marketplaces and payment wallets. Hence it is tried and tested to simulate conversions.
The pay later convenience has been a long time favourite of the impulsive fashion shoppers mostly.
What is the ‘Buy Now Pay Later’ concept and how does it work?
The Buy Now Pay Later method is quite similar to credit card payments considering the fact that here too the seller of the product or service does not get paid immediately. The outstanding payments are settled at a later time.
During purchase, if the customer opts for this payment option his details (such as email and other contact information) minus the credit card details are requested and the outstanding amount is billed in the upcoming month.
Who gets to avail this payment option?
Unlike all other payment methods the ‘Buy Now Pay Later’ one can not be used by everyone. Unless you have ordered a lot of products from the marketplace with fewer cancellations or you have a great credit history you may not have access to avail this mode of payment.
This is done to avoid fraudulent practices from taking place that may end up in losses for the sellers. Credit scores showcase the credibility of the customer hence it is a trusted way to decide if the buyer is allowed to pay later or not.
Perks of ‘Buy Now Pay Later’ mode of payment
1-The ‘Pay Later’ concept has been proven to drive increased conversions credits to the facility to pay at a later time.
2-Reduces the additional steps involved in the checkout process. Huge cart abandonments happen when customers come face to face with transaction snags and delays. Also often people are skeptical about sharing their bank details or credit card information which is not a requirement in this step.
How can you add this feature to your marketplace?
We at CedCommerce have successfully introduced our customer credit limit extension to bring to the table the exact same features as available with Flipkart’s ‘Pay Later’.
The Credit Limit extension facilitates the admin to set a credit limit for customers thereby adding payment method ‘pay on account’, that works towards accepting credit orders. The customer can place an order via ‘pay on account’ payment method as long as he does not exceeds the credit limit.
With our Credit Limit Extension customers can keep a track of their available credit, complete a purchase using ‘pay on account’ payment method. Customers can place an order using credit provided that their open orders are below-defined credit limit. In case they exceed their credit limit, they cannot place an order using ‘pay on account’.
Key Features of Customer Credit Limit Extension:
1-Allows the admin to set a credit limit customer wise
2-Allows viewing the customer credit limit reports
3-The ‘pay on account’ payment method can be utilized for credit payments
4-Enables customer to check the credit limit set for them, used and the remaining amount
5-Allows the admin to view transaction details of each customer individually
CedCommerce offers the necessary technical solutions specifically made for building one such platform. These extensions come with a multitude of features to aid in the development of a rich multi vendor ecommerce marketplace. CedCommerce’s Magento 2 Marketplace extensions and add-ons are ready made and reasonably priced solutions for building a website like Amazon. A marketplace armed with these features is undoubtedly going to possess the best in class features.
For building your own multi-vendor marketplace platform and to see what our satisfied customers have to say about us do visit: CedCommerce
Other extensions to enhance your online store:
Customer Reward Management [M2]
Contact us for more: https://cedcommerce.com/contacts