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What are Buy-Now, Pay-Later Gateways?

Perhaps now’s the time to take your CBD eCommerce store to the next level with a buy now, pay later gateway?
In a nutshell, these payment gateways allow your eCommerce customers to select a product and then pay for it with regular, fixed instalments. It’s the online shopping version of store credit, and your customers will still get to receive their goods.

In addition, your customers will sometimes be given payments options, opting for a 3, 4, 6, or 12-month payment plan. These instalments are expected until the total value of the cart is paid off. The excellent news for you as a business owner is that you still get your money up-front and in full. This amount is covered by a partnership developed with a financing company in exchange for a 3% to 6% cut.

In other words, it’s a win-win situation, benefiting both you, the merchant and your consumers.

How Do They Work?

As a merchant owning an eCommerce CBD store, you can add by now, pay later as one of the payment options on your site. Customers will then be redirected to a payment gateway where the instalment process is supported. Additionally, most merchants even have an app and websites! This means that you’ll get free marketing as consumers can access your store from an entirely new angle.

You, the retailer, will then be charged a processing fee for the transaction. These fees usually range, depending on the merchant supplier.

The CBD Friendly Buy-Now-Pay-Later Payment Gateway Option

While not all merchants are CBD friendly at this stage, there is a fantastic payment gateway that will allow you to use their site as a CBD eCommerce store. Check them out!

Split Pay – Your CBD Friendly Option

Split Pay is an excellent company that allows CBD online stores to buy now and pay later services. They even offer you a 30-day free trial.

They aim to provide support for small and medium-sized businesses, increasing revenue for the entrepreneur.
The customer experience is a breeze:

  • There is a simple sign up process.
  • Their transactions are instantly approved.
  • Customers pay 0% interest on their purchase, and they pay it back in 4 instalments.

The Split Pay app is conveniently available for Apple and Android users. Their services are available for UK businesses and those purchasing from UK addresses. As a merchant, you will have no setup fees, but you will pay a small processing fee, and a set percentage of every purchase made using their services. To get started, it’s as easy as filling out a form on their website to register your e-commerce store.

Step 1: Visit Their Website www.splitpay.com

Step 2: Click on ‘Sign Up’ in the top right corner and select ‘business’.

Step 3: Fill in your details in their simple digital form. You can select a demo, a 30-day free trial, or a 30-day free trial with a demo.

Once you’ve submitted your form, Split Pay will get in touch with further requirements.

How are Buy Now and Pay Later Payment Gateways Beneficial for Ecommerce Sites?

Buy Now, Pay Later Payment gateways are hugely beneficial in increasing business revenue and attracting more customers to purchase products, particularly in these strained economic times. In fact, they are said to increase your site’s earnings by up to 120%. Here are eight reasons why:

  • Online shoppers love to fill their carts with dream or desired items. Yet, they will often cancel the transaction when it comes to payment time due to insufficient funds. According to statistics, the average shopping cart abandonment rate is 68%, proving this theory. If your customer can pay over time, they won’t need to find all that money in one go, likely attracting them to this option.
  • Buy now, and pay later does not impact a consumer’s credit rating like other loans would.
  • They attract customers to purchase big-ticket items, usually avoided for financial reasons.
    In addition, they may attract a customer to select the more expensive option when considering choices as they can purchase luxury brands but pay for them over time. Psychologically, it feels like spending less. .
  • They are easy to integrate into your website, attracting customers to your extensive payment options.
  • They are great for relationship building with your customers as they show you offer flexibility, particularly in these challenging times.
  • With 44% of customers using by now and pay later, you are more likely to attract people to your store.
  • Statistics also show that 48% of customers advised that they spend a further 10% to 20% more by using buy now and pay later than they would if they were using a credit card.
  • Customers pay 0% interest on their purchase, and they pay it back in 4 instalments.

With 2-billion people purchasing goods online and the global eCommerce market worth over 4.2 trillion, it’s simply explosive. Customers browse the internet daily for endless types of products, including CBD. As a CBD business owner, you need to be ahead of the trends, provide cutting-edge technology, sufficiently marketing, to ultimately stand out from the crowd.

Perhaps fast, effective, convenient, and win-win products like buy now, and pay later payment gateways are the answer. While some brands do not allow CBD stores to use their buy now and pay later services, brands like Split Pay do. With relatively low-interest rates, vs reward, they are a worthwhile consideration, especially for CBD store owners where the price point of products may make it difficult for customers to afford them if payment is required up-front and in full.

Top ‘Buy Now, Pay Later Payment Gateways’ That Aren’t Quite Available for CBD Stores

While you can chance your luck with Klarna, you won’t be able to sign up your store for Clearpay. This is unfortunate as both these options are 2 are the most well-recognised buy now, pay later payment gateways.

Klarna – Sometimes CBD Friendly

Unfortunately, our experience of applying for a Klarna account hasn’t been smooth sailing. We applied for a Klarna account for our own CBD business but was met with this rejection:

“Our Merchant Onboarding Team has been reviewing your application to become a Klarna Merchant! However, your website is selling CBD, which is considered too high risk for the unmanaged flow. This application will be rejected; please contact our Sales department.”

This was surprising considering they provide the service to the following websites selling CBD:

– puresportcbd.com/
– wethriveofficial.com/

In response to them regarding this, we received this response:

“Unfortunately, we cannot currently onboard merchants who sell CBD products.”

Clearpay – Not CBD Friendly

Clearpay is a UK-based merchant that supplies a range of products, from fashion to beauty. They are known as Afterpay in other countries.

Unfortunately, when we applied for an account, we were immediately rejected as Clearpay does not currently accept CBD clients to use their system.

Covid-19 has accelerated the online shopping market, with more consumers turning to the internet to avoid physical shopping. In fact, it’s estimated that by 2040, 95% of all purchases will be made online. Therefore, as an online store owner, it’s vital to set your business up in a way that best caters to your clientele.
The question is, what does the consumer want?

They want fast, effective, and convenient methods and to have an opportunity to afford your goods. By now, and pay later, payment gateways achieve just that and are considered a powerful eCommerce tool to grow your business.

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