Topics In Demand
Notification
New

No notification found.

Post-pandemic retail requires out-of-the-box thinking
Post-pandemic retail requires out-of-the-box thinking

June 27, 2022

208

0

The COVID-19 pandemic has changed the way consumers interact with brands and therefore it is important for retailers to adapt to this new normal. Whether they are big-box retailers or smaller size entities, some fine tuning is the need of the hour to capture customer footfalls and ensure conversions. There has never been a higher focus on providing affordability in retail than today, where the concept of Buy Now Pay Later (BNPL) is gaining prominence. Extending the affordability proposition to customers via BNPL has proved to be a major contributor in bringing the sheen back to the retail market and to propel its growth trajectory.  Consumers’ reluctance in buying big-ticket items can be offset by no-cost EMIs. The fact that these don’t end up putting a dent in their monthly budget and can be availed at the offline point of sale in a matter of seconds without the need to pledge any collateral, furnish documents, and physically sign any agreement. When customers don’t have to pay an upfront amount for their purchase, their purchasing powers increase. Pay Later is not perceived as a loan but as periodical repayments at no extra cost. This change in perception is also one of the reasons for the growth of the Pay Later proposition in India.

A Goldman Sachs report1 has indicated that in India the online payment option via BNPL is poised to register a six per cent rise in market share from three per cent to nine per cent in 2024. Pay Later has proved to be one of the most sought-after ways of transacting using digital payments by Gen Z and millennials. It is a customer-centric proposition as it offers immense flexibility and transparency. 

The post-pandemic retail warrants out-of-the-box thinking where retailers must embrace new-age approaches to drive sales. There is a huge mass of consumers using debit card today who are eligible to execute the Pay Later transactions during checkout. Not to forget the significantly large credit card consumer base and that has led to massive adoption of digital Pay Later transactions.

By activating Pay Later on their PoS terminals, retailers can improve conversion of big-ticket items, upsell and boost their profits.

If it becomes an integral part of retail store strategy, Pay Later can prove to be a gamechanger for merchants and a way to increase sales.

 

Reference:

1. https://www.hindustantimes.com/brand-post/what-you-need-to-know-about-bnpl-india-s-fast-growing-credit-option-101629092797492.html


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Pine Labs is one of the leading merchant commerce platforms in Asia

© Copyright nasscom. All Rights Reserved.