Checkout abandonment is the number one challenge that e-commerce marketers face, made all the more complicated by the myriad reasons why it happens. It is estimated that only 34% of transactions are concluded; the rest is not finished due to things as simple as creating an account. Other factors include multi-step payment processes, including those that require consumers to travel off-site to complete a transaction. This represents roughly $ 18 billion in lost sales each year. That last mile of the buying journey is critical to success.
While there is no one-size-fits-all solution, many brands have embraced BNPL options to help ease consumer hesitation and streamline the payment process. However, it actually creates additional friction when you take a closer look. Many of the obstacles that create cart abandonment like account creation and additional fees are just exasperated by some of these payment solutions.
Keep customers in place
Many players in this space require potential users to go through lengthy offsite account creation and application processes. It is a proven fact that 20% of users abandon their cart If they need to create an account before they can complete their transaction, then providing a seamless on-site experience is key to increasing conversions. Separate it, one of BNPL’s leading providers, is the only one that allows buyers to stay put and complete a transaction effortlessly, while extending the payment flexibility offered by BNPL. Customers love the option and traders appreciate the increased conversions and the higher AOV. When Canyon Bikes added this option at checkout, they saw an immediate impact and achieved a 13% increase in average order value. 21% of Canyon buyers have also chosen to pay with Splitit, opening up a major payment option that helps customers buy and afford purchases.
This is a perfect example of an inclusive payment experience that keeps customers on your payment rails and provides additional flexibility in payment methods. This helps your customers to remain your customers and keep their respective data within your ecosystem.
Empower purchases, not new debt
Flexible payment options are especially useful when it comes to large items, and buyers are looking for a more economical way to stretch their money. There are over 135 million American shoppers who have established credit and the means to purchase big ticket items, but are just looking for a smarter way to shop. In fact, 52% of Americans say they would use their credit card to make these purchases if they had the ability to pay over time without interest or fees. Of all the BNPL options available, Splitit is the only one that does not charge any interest or fees. No new accounts, no apps, no fees, and shoppers continue to accumulate loyalty points and membership miles with their preferred card (s), so many end up spending 20% more per order.
It’s a perfect way to reward buyers for building up good credit and leverage it to buy the things they want and need with manageable monthly payments. Splitit customers saw 78% higher conversions when introducing the BNPL option into their checkout process.
Attract qualified consumers
As a merchant, you know that the best customer is the one who is happy with their shopping experience, comes back for more, and shares positive reviews. It is also the buyer who has the credit and the means to pay for his purchases. Splitit realizes the importance of a simple and transparent shopping and payment experience and helps qualified consumers use their credit cards differently to bring premium products to their fingertips. Splitit is specifically aimed at an older, established customer who wants to pay smarter, make their credit work harder, and stretch their dollars further. In many ways, this makes luxury more affordable and turns high-priced wishlist items into purchases. From high-end Italian shoemakers and unique watches to investment purchases like greenhouses, Splitit traders have expanded their customer base and made shopping an immediate reality. “Splitit is such a different concept from anything out there. I don’t know why more and more retailers aren’t taking advantage of what they have to offer, ”shares Vishal Batwara, owner of GemsNY.
It’s also important to note that many BNPL solutions offer very low credit limits, making it impossible to use this option for big-ticket items, which is exactly when buyers need it most. With Splitit, the buyer is only limited to what is available on their credit card.
Each BNPL solution will offer increased conversions and a higher AOV, but take a look at the details carefully. How much do they really help? Separate it is the only BNPL solution that keeps customers on your site throughout the payment process and therefore Splitit’s AOV is 4x the competition. Plus, Splitit technology leverages existing credit cards, so customers never have to fill out forms, create an account, or pay fees. This attracts a more qualified customer who has established credit and now has the flexibility to afford big-ticket items and keep their personal finances on track. This helps lower their payments so they can keep more of their money to spend however they want – up to 20% higher AOV.