2 women in a clothing store. One is holding a portable payment terminal and the other is smiling as she places her phone up to it.

Increase conversion: 5 tips to make the most of pay-over-time

Offering a buy now, pay later (BNPL) option to customers can increase conversion for your business—by as much as 20-30%.

The first step toward getting that bonus is to partner with a BNPL provider like Affirm. Once you have the ability to extend pay-over-time options to your customers, you can try these 5 ways to maximize the potential conversion increase for your business.

1. Display the pay-over-time option throughout your site

Make sure shoppers see BNPL options clearly alongside other payment vehicles like credit and debit card options. This also helps ease sticker shock and reduce cart abandonment.

In addition to displays on checkout pages, place visual cues on product display pages (PDPs) that alert shoppers about pay-over-time options. After SuperATV decided to add Affirm’s customizable as low as messaging on PDPs instead of only on the checkout page, sales volume surged 10x.

“The integration on the product pages was a piece of cake. It probably took a day with my developer,” said Josh South, Director of Marketing and Technology for SuperATV.

Reminding shoppers they can buy now and pay later also helps you capture incremental sales that might otherwise not have happened. In a recent study of Affirm users, 29% said they would not have completed the purchase if Affirm wasn’t available. And nearly half (45%) would have delayed the purchase.

2. Offer pay-over-time options at the point of sale

Do you have a brick-and-mortar store? Offering BNPL options in-store can also capture more revenue for your business. BNPL made up 1% of all U.S. in-store transactions in 2021 (estimated at $94 billion), and that figure is expected to double by 2025. In comparison, BNPL accounted for 4% of U.S. e-commerce activity in 2021, with an estimated total value of $56 billion.

Be strategic about where you place signage that reminds shoppers about the pay-over-time options you offer. The service department at Audi Coral Springs, for example, saw the most momentum with Affirm promotions near the checkout counter.

“I’d say the signs we’ve got near the point of sale have the most impact,” said Luan Nuriu, Service Director for the dealership. “They show how easy and reasonable paying with Affirm can be. They’re so effective that some of our employees are now using Affirm when they bring in their cars for service!”

3. Spread the word about buy now, pay later up-funnel

Shoppers want to use this payment method, so make sure they know it’s available early on as they consider their purchases. Some shoppers prefer BNPL so much that it factors into their decision of where to shop. A recent Affirm survey found that just about half (49%) of shoppers will only buy from retailers that offer a BNPL option. 

Find ways to include BNPL options in your marketing placements, such as banners, email campaigns, and social media messages. Your BNPL provider may already have ready-to-use imagery and copy that you can plug into your marketing materials. The marketing toolkit from Affirm has a variety of assets and messages that partners can deploy in emails, landing pages, ads, and more.

4. Offer interest-free promotions

Offering 0% APR promotions can be very effective for more expensive items and for closing more sales during peak times, like the holiday season. They also protect your margins and make a great alternative to discounting. And many shoppers see these zero-interest offers as a savings that can give more flexibility in their budget.

An interest-free promotion with Affirm drove a significant conversion boost (30%) for Alterra Mountain Company’s popular Ikon Pass that offers global access to over 45 premier ski destinations. Room & Board saw such great results with 0% APR promotions that the furniture company decided to offer them permanently.

5. Tailor the offers and terms for different price points

Shoppers love flexibility in how they pay—even with BNPL options. Some prefer a biweekly plan with 4 installments, others want to pay in monthly installments for more flexibility or for a more expensive purchase. When you offer shoppers this range of payment flexibility for a single purchase, your business can see lifts in sales volume, conversion, and more.

The ability to offer several custom payment plans for a wide range of cart sizes is available with Affirm’s Adaptive CheckoutTM and Shop Pay Installments, powered by Affirm. Whisker and LuisaViaRoma are among the many merchants seeing double-digit increases in conversion from Adaptive Checkout.

“Adaptive Checkout puts our customers in a position where they have more payment solutions available to them,” said Jacob Zuppke, President and COO of Whisker. “We’ve seen time and time again with Affirm that there’s a direct correlation between more accessible payment options and a higher conversion rate—and that’s awesome.”

Learn more about how buy now, pay later works for merchants.

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