Buy Now Pay Later shaking up the evolving M-Commerce industry in India
The global pandemic of 2020 has revolutionized the entire scope of e-commerce to the extent that the expectations and demands of the consumers have flipped within seconds all over the globe.
Initially, mobile commerce or mCommerce was considered a sub-segment of ecommerce as it leverages the use of mobile phones and tablets to purchase products and services online. However, during the peak times of COVID 19, it has become a major sales channel for the merchants as more and more people are using their mobile phones to make frequent purchases on mobile applications of multiple eCommerce platforms. Moreover, mCommerce is easy to use across all ages.
Much of the growth of this industry can be attributed to the sub-continent’s increasing internet and smartphone penetration. By August of 2020, the number of internet connections in India had already crossed a 760 million threshold, which was mainly due to a drive by the ‘Digital India’ mission.
As such, the major factors enabling the rise of this industry are 4G network-accelerated smartphone penetration. Mobile commerce also provides personalized experience to the customers by browsing their history as well as their purchase history that can help them re-purchase a product or buy something immediately.
Ease of payments is yet another significant driver of mobile commerce. Online platforms are offering multiple online payment modes, which eliminate the entire hassle of making payments as today’s consumers are using their mobile devices for almost everything. From paying for their utility bills and groceries to shopping for fashion and household items, stationery supplies, mobile commerce is taking over eCommerce in every possible way. However, many consumers have little patience for checkout frictions and often end up abandoning purchases when faced with the slightest inconveniences. This indicates that convenience is the key for merchants, especially in mCommerce, and Buy-Now-Pay-Later services come as an ideal solution to bridge the gap between the merchants and the consumers, benefitting both equally amid the crisis.
How BNPL is stepping up to support the M-commerce space?
Traditionally, consumers relied on credit cards when they didn’t have the money to make purchases right away. But, a vast majority of consumers are now extremely wary of credit card debts, and pay later services have sprung into action to cater to them with hassle-free payment options. BNPL services allow their customers to pay over time with zero to very low-interest rates. Consumers not only find this model convenient and affordable but also trustworthy, which is why they do not second-guess availing the model and hence accept it as the new normal. According to the Global Payments Report 2020 by Worldpay, in the next three years, BNPL transaction volume is expected to grow by at least 54 percent.
New-age Pay later platforms like Simpl are enabling consumers to make purchases and checkout in one-click with pay later functionality, building trust and ensuring strong buyer protection. The technology company works with merchants and financial institutions to enable a world where every monetary interaction is easy, quick, and transparent. Thus, online retailers are gaining and retaining more consumers by giving them exceptional credit and checkout experience.
Secondly, BNPL is resonating well with consumers because brands on mCommerce platforms are pursuing a buyer-first approach. This accentuation on consumers proves effective in retaining existing customers and finding new ones at the same time. BNPL players strongly believe in the spirit of maintaining quality service. This value has resulted in satisfactory consumer service as well increased ROI for businesses
The pandemic has clearly paved the way for mCommerce to be the next disruption in eCommerce space where BNPL has emerged as a boon to the merchants, especially the smaller ones. Customers of businesses, which have tapped into pay later services, are now making the purchases they might not have contemplated otherwise or might not have seen through completion. The ease, security, and superior experience of BNPL services have bridge the gap in the existing payment space and in the course have also helped foster trust between merchants and their customers.
Initially, mobile commerce or mCommerce was considered a sub-segment of ecommerce as it leverages the use of mobile phones and tablets to purchase products and services online. However, during the peak times of COVID 19, it has become a major sales channel for the merchants as more and more people are using their mobile phones to make frequent purchases on mobile applications of multiple eCommerce platforms. Moreover, mCommerce is easy to use across all ages.
Much of the growth of this industry can be attributed to the sub-continent’s increasing internet and smartphone penetration. By August of 2020, the number of internet connections in India had already crossed a 760 million threshold, which was mainly due to a drive by the ‘Digital India’ mission.
As such, the major factors enabling the rise of this industry are 4G network-accelerated smartphone penetration. Mobile commerce also provides personalized experience to the customers by browsing their history as well as their purchase history that can help them re-purchase a product or buy something immediately.
Ease of payments is yet another significant driver of mobile commerce. Online platforms are offering multiple online payment modes, which eliminate the entire hassle of making payments as today’s consumers are using their mobile devices for almost everything. From paying for their utility bills and groceries to shopping for fashion and household items, stationery supplies, mobile commerce is taking over eCommerce in every possible way. However, many consumers have little patience for checkout frictions and often end up abandoning purchases when faced with the slightest inconveniences. This indicates that convenience is the key for merchants, especially in mCommerce, and Buy-Now-Pay-Later services come as an ideal solution to bridge the gap between the merchants and the consumers, benefitting both equally amid the crisis.
How BNPL is stepping up to support the M-commerce space?
Traditionally, consumers relied on credit cards when they didn’t have the money to make purchases right away. But, a vast majority of consumers are now extremely wary of credit card debts, and pay later services have sprung into action to cater to them with hassle-free payment options. BNPL services allow their customers to pay over time with zero to very low-interest rates. Consumers not only find this model convenient and affordable but also trustworthy, which is why they do not second-guess availing the model and hence accept it as the new normal. According to the Global Payments Report 2020 by Worldpay, in the next three years, BNPL transaction volume is expected to grow by at least 54 percent.
New-age Pay later platforms like Simpl are enabling consumers to make purchases and checkout in one-click with pay later functionality, building trust and ensuring strong buyer protection. The technology company works with merchants and financial institutions to enable a world where every monetary interaction is easy, quick, and transparent. Thus, online retailers are gaining and retaining more consumers by giving them exceptional credit and checkout experience.
Secondly, BNPL is resonating well with consumers because brands on mCommerce platforms are pursuing a buyer-first approach. This accentuation on consumers proves effective in retaining existing customers and finding new ones at the same time. BNPL players strongly believe in the spirit of maintaining quality service. This value has resulted in satisfactory consumer service as well increased ROI for businesses
The pandemic has clearly paved the way for mCommerce to be the next disruption in eCommerce space where BNPL has emerged as a boon to the merchants, especially the smaller ones. Customers of businesses, which have tapped into pay later services, are now making the purchases they might not have contemplated otherwise or might not have seen through completion. The ease, security, and superior experience of BNPL services have bridge the gap in the existing payment space and in the course have also helped foster trust between merchants and their customers.
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