The Benefits of Flexible Payment Options in eCommerce: An In-Depth Look


In today’s global marketplace, the boundaries of commerce have faded with the emergence of eCommerce. Customers, businesses, and revenue can come from any corner of the world, presenting a realm of opportunity for industry titans and emerging small and medium-sized enterprises (SMEs). Amidst the growing trend of innovation and the financial technology advancements propelled by Artificial Intelligence (AI) and real-time payment methods, it is interesting to note that certain online businesses still follow legacy payment practices. eCommerce stores are not just online stores; they are complete experience zones to give a seamless shopping experience that fits into shoppers’ lives.

Customers Demand for Diverse Payment Options

The exponential surge of eCommerce in recent years appeared due to an increase in the consumer base due to the ease of shopping in the midst of their daily routine, whether on the move or during working hours. However, the online payment hurdles with limited payment options are a concern for shoppers as well as for eCommerce business owners. eCommerce businesses suffer from abandoned shopping carts due to limited eCommerce payment options.

eCommerce merchants who want to orchestrate a seamless customer experience need to unfold the flexible payment options that effortlessly transform the eCommerce payment system to the emerging trend of Buy Now, Pay Later (BNPL). This not only expedites the buyer journeys but also mitigates the scourge of abandoned shopping carts.

global-transaction- value

Source: StatistaGlobal transaction value of Buy Now, Pay Later (BNPL) in eCommerce from 2019 to 2021, with forecasts from 2022 to 2026 (in billion U.S. dollars)

Buy Now, Pay Later (BNPL): The Flexible Payment System for eCommerce

According to Statista, globally, the BNPL flexible payment transaction value will reach $550 billion by 2026.  Flexible payment options are gaining popularity in the online shopping arena, especially among tier 2 or 3 cities shoppers and younger generations, including Gen-Z and millennials. The flexibility in the payment offers shoppers the freedom to Buy Now, Pay Later (BNPL), or pay in instalments, but without any high-interest rate. Let us delve into the benefits of flexible payment options for eCommerce, customer experience, and industry.

The Benefits of Flexible Payment Options in eCommerce

– Increases Online Conversions

In today’s online shopping landscape, common consumers prefer smartphones for browsing and shopping for products and services compared to other devices. A simplified online purchasing experience can significantly increase the ‘users’ into ‘customers’ conversion rate and minimise cart abandonment.

Cart and checkout abandonment occurs when the total cart value exceeds what a customer is willing to pay. A strategic solution lies in integrating flexible eCommerce payment options with effective ways to turn potential buyers into customers. Options like instalment payments and the trendy Buy Now, Pay Later (BNPL) dissolve financial barriers and streamline the mental hurdles that obstruct the customer’s journey toward a successful purchase decision.

– Increases New Customer Acquisition

Think about spending hours browsing online stores for a product from your long-awaited wish list only to find at the checkout and payment stage that it is over your budget or they have high-interest EMIs on your credit card; you are willing to buy but do not have the options to pay. The same goes for most first-time online buyers.

Providing a variety of payment options is not just about financial transactions; it is a strategic move that eases the acquisition funnel to attract new customers who might have hesitated to make a purchase due to the complex payment options. Buy Now, Pay Later (BNPL) is not just a trend; it is a gateway to increase spending per shopper and empowers eCommerce businesses to gain better customer acquisition capability.

– Improves Customer Loyalty

Customers appreciate a personalized, flexible payment plan that aligns with their budget and preferences. With the flexible payment options, eCommerce brands can get dual benefits — first, they can acquire new customers and another, it helps brands to improve the loyalty of existing ones.

This is not just about initial transactions but about building a connection that beckons customers back, even steering them away from competitors who lack such flexible payment choices.

While the importance of acquiring new customers is undeniable, the actual revenue juggernaut lies in retaining the ones you already have. Increased customer loyalty becomes vital for sustained long-term financial gains, and integrating a flexible payment system emerges as a strategic key to unlocking that long-term loyalty.

– Increases Customer Lifetime Value (LTV)

A flexible payment system like BNPL gives the added advantage of the customer to buy more and spend more than they used to do earlier. It attracts and promotes shoppers for a bigger cart value, more purchases in a single shopping, and more recurring shopping that increases the Customer Lifetime Value (LTV). A positive shopping experience stimulates customer retention for more repeat visits and higher value.

After discussing the benefits of flexible payment options in eCommerce, let’s understand how eCommerce stores can integrate it.

How eCommerce Can Enable Flexible Payment System

Flexible payments and the rising prominence of Buy Now Pay Later (BNPL) are reshaping the eCommerce payment system landscape and empowering customers to gain better control over how they shop and pay online. Facilities like BNPL emerge as a dynamic alternative, challenging traditional payment norms for more shopping, repeat purchases and higher cart value. This innovative approach not only liberates customers from the burden of interest fees but also allows them to buy more at their convenience.

Businesses need the right technology provider to enable successful Buy Now Pay Later (BNPL) eCommerce payment integration on their eStores. First, understand the needed features, including credit options, repayment terms, repayment options, auto-installments, customization, third-party extensions, payment getaways, etc.; then look for the providers. These providers offer solutions that enable flexible payment channels for your customers using extensions; for example, Magento store owners can use extensions like Layaway & Partial Payments Extension for Magento 2 on their eCommerce stores to offer flexible EMIs, down payments, and layaway plans to gain benefits such as higher conversion rates, enhanced shopping experience, and increased customer loyalty.


Undoubtedly, seeking high sales figures is the ultimate goal for any eCommerce business; however, customer convenience is at the core of it. More so, adopting a flexible payment system that empowers customers to streamline their buying decisions will earn brands a huge customer base with greater loyalty. We cannot ignore the fact that the competition over customers in the eCommerce landscape is getting fierce, and it is essential to keep customer choices on priority. By adopting diverse and flexible payment options into a storefront, eCommerce businesses can help the industry grow.


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