The way in which we pay for our goods and services has changed dramatically over the years. From using a bartering system where you traded some wheat from your farm for a chicken from your neighbour’s to sitting in your own home and paying with the click of a button. The world has evolved and along with-it technology and payment methods.  

It took the world 9,500 years to move to a paper money payment system and only a very short 60 years to move to what is virtually invisible money. Until around 700 BC we used a bartering system, trading one item for another. Then coins were minted, and the world of payment options was changed forever. From there the world moved to paper money in the 17th century.

In 1659 we started using drawn notes, these are known nowadays as cheques – and are not really in use anymore. In 1979 Visa introduced us to the credit card. And then with the introduction of the internet in the 1990s an evolution in payment options began, one that has moved so fast that it’s almost impossible to keep up. 

The newest advance in payment options is the BNPL payment option that more and more companies in the UK are now offering their customers. 

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Payment options available in 2022

We are truly living in modern times and as developments in technology get more advanced so do the payment options at our disposal. As mentioned, the first credit cards came into use in 1979, and now credit card technology has advanced so much that you don’t even need a physical credit card to make online payments anymore. You can now even use a virtual credit card, one that only exists on the internet. Credit card technology has also advanced in the way we use our table cards. It’s as easy as tap-and-go at most retail outlets now. 

Probably the biggest buzzword in the current payment world is cryptocurrency, with more and more retail outlets and service providers accepting various cryptocurrencies in lieu of actual cash.

Another advance in payment options, that has become quite popular, and especially during the tough times that the world is now facing, is a buy-now-pay-later payment option, or BNPL payment for short. 

What is a BNPL payment method?

The BNPL payment method is a great advancement in the retail world and holds many advantages for not only the buyer but also the seller. A BNPL payment option allows for buyers who may be on a tight monthly budget to buy those luxury items that they would not be able to afford otherwise. 

This BNPL payment option allows for the buyer to purchase the item now and only pay for it at a later stage, exactly as the name states – by-now-pay-later. It’s different from the lay-buy system as the BNPL payment option allows you to start using the item immediately, whereas lay-buy only allows for use of the item once payment has been completed in full. 

How does a BNPL payment work?

The BNPL payment option is very similar to buying on credit with the amazing exception that it is absolutely interest free. If the retail outlet that you are purchasing from allows for this BNPL payment option, they will offer it at check-out. You will receive immediate notification on whether your application has been approved. And from there the process is as easy as one-two-three. 

After the approval of your BNPL payment option you will then have to pay a deposit for the item, possibly as much as 25%. The remainder of the payment for the item will then be done in a series of instalments. These instalments will be done over periods as short as 30 days and as long as 12 months. This allows for consumers to better manage their finances and budget. 

How can the BNPL payment option increase your sales?

Because the BNPL payment method allows for consumers to buy items that they may not be able to afford under the usual payment conditions, i.e., full payment immediately, it’s quite clear that if a retail outlet allows for this method to be used their sales will increase immensely. 

Instead of a consumer now having to save until they can afford the item, and then running the risk that it may no longer be available or the newest model, they are now able to add that item to their cart immediately. The added benefit of the BNPL payment method being completely interest free even consumers who were previously afraid of buying in credit will now join the bandwagon, as this is simply a repayment of the original cash amount of the product. 

Therefore, the effects on a retailer’s sales figures are quite clear to see. You will have more consumers buying the big-ticket items that may have been more difficult to sell in the past, not because they were necessarily expensive, but just because the consumer may not have that much cash readily available, The BNPL payment method has changed the world of retail, for both the retailer and the consumer.

Implementing the BNPL payment option in your business

Now that it’s clear that using a BNPL payment system will not only boost your sales but will also attract new customers who may not have been able to buy from your retail outlet in the past, the next step is to implement this option on your business. 

With the Elly POS system you can allow your customers to pay off their purchases in 6 weekly, interest-free payments. The Elly POS system allows for your retail outlet to accept many different payment options and will give you the opportunity to grow your sales revenue and increase your profits. Elly has kept up with modern technology and surpasses most other POS systems on the market. 

They have even integrated cryptocurrency in their payment options, making this a very popular option among the younger generations. The only way to survive and grow in this fast-paced world is to stay ahead of your competitors. Offering your customers the BNPL payment is one way of achieving this goal.