Buy Now Pay Later Business With SubscriptionFlow

The competition for almost every business is fierce. Every day think tanks all across the world strategize to uplift the performance of their enterprise. Business models have played a significant role in helping companies outperform. Today, brick & mortar stores and franchising are considered the conventional business models. However, subscription billing, instalment buying, and buy now pay later have become the trend of the day.

In this article, we are going to uncover various facets of the buy now pay later business model and how SubscriptionFlow can boost the performance of businesses that follow this business model. However, it is important to unfold the basics of this business model and its relation to the subscription or recurring billing management system.

Also Read: How to Charge Recurring Payments

Unveiling Various Facets of Buy Now Pay Later Business Model

Buy now pay later is a business model that allows customers to pay the cost for the services or products in instalments. It can be interest-free—depending upon the nature of the business. Some companies might charge their customers a penalty for the late payment of instalments. Buy now pay later has become one of the favourable business models for different enterprises because there isn’t involved a bank or third body to process the payments that usually happens in case of payment through the credit card.

Companies like Klarna and Afterpay are considered the pioneers of opting for this business model in the digital world. Now, the point that you, as a retailer, need to consider is the similarity of this business model with subscription billing. Subscriptions also facilitate customers to pay with time rather than paying for services in lumpsum.

Thereby, adopting SubscriptionFlow can boost the performance of those businesses that are already operating on the buy now pay later (BNPL) business model. Here, all business processes from billing to payment processing plus business analytics can feasibly be managed for a BNPL business.

Also Read: How to Align Marketing & Net Revenue Retention (NRR) Strategies To Increase The Profit Of Your SaaS Company

Easy on the Customer Pocket

It is not easy for homebuyers to pay upfront money and become a homeowner the next day. Just like this the smartphones and computers are quite expensive for many people out there. However, many smartphone and high-tech gadgets manufacturing companies are now offering their customer base an option to get their tools and gadgets on instalment. It is convenient for the seller and the buyer to divide the cost into chunks. From the buyer’s side, it is easy for him to pay an instalment rather than a hefty upfront cost. From the retailer’s side, it becomes the source of recurring revenue and this revenue is predictable for him.

When these instalments are managed through a subscription management platform, the retailer can easily monitor the Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) that he earns from charging instalments. Moreover, the subscription management software—SubscriptionFlow not only assists in predicting the revenue but can help buy now pay later companies to manage all business processes from a single platform.

Catering to More Customers

The subscription billing business model is adopted to target more customers. You would have heard that many new businesses from varying domains are becoming part of the subscription ecosystem. So, the competition is already cutthroat. Both the established enterprises and the entrepreneurs are thriving to find new avenues to grow and retain the customer base.

Buy now pay later (BNPL) is a business model that many companies are opting to attract more customers. And to manage these customers, a recurring billing management platform is a convenient option. There was a time when ‘SAVING’ was more like a trend. People used to be too thoughtful before making a purchase. However, contemporarily, they need the availability of the product then and there. BNPL serves this need of the immediate provision of the products and services.

Predictive Metrics

In the subscription business, companies keenly monitor different metrics to make accurate data-driven business decisions. They evaluate monthly recurring revenue, annual recurring revenue, and customer retention rate, etc. When businesses adopt the BNPL business model, they establish a long-term relationship with the customer.

Their customer is bound to stay on board at least till he pays off all his instalments. Consider the scenario, you offer your customer to use your services and pay money in instalments for the next six months. The customer is liable to be onboard and pay you. Here, rather than a one-time purchase, the customer is going to stay with you for the next six months. You will need to monitor your revenue during these six months, customer retentions, and other related business metrics.

Recurring billing management software offers the best-automated business solution to manage the instalments of your customer and related KPIs or metrics as well so that you can use predictive analytics and improve BNPL business performance.

Also Read: Learn How the Best Recurring Billing System are Helping SaaS companies Track these SaaS KPIs and Metrics

Competitive Edge in the Market

As mentioned earlier, just like subscriptions, instalments are another way to divide the upfront cost for the convenience of the customer and to grow the customer base. If you manage your BNPL business on a subscription management system, the overall performance of the business will be streamlined in a way that you will get a competitive edge in the market. You can manage your buy now pay later business in a far better way through a subscription management platform and satisfy your customers. There are so many companies operating on the same business model, however, by incorporating changes in the model as per the business niche and its requirements, you can lead the market with the adoption of a fully functional and effective recurring billing management software.

Buy now pay later is very attractive for both retailers and customers. For example, in the busy season of Black Friday when it is very challenging to manage inventory, the BNPL model can be very helpful. You will probably not need to look for inventory if you offer your customers to shop now and pay later. However, managing inventory, recurring billing & invoicing, payment processing, transactions, and business analytics can be managed through SubscriptionFlow. There is a ground of commonality between subscription business and shop now pay later business model and SubscriptionFlow experts are offering you to harness this opportunity to run your BNPL business in a better way & improve the flow of revenue for your business.