Checkout abandonment is the number one challenge ecommerce merchants face, made all the more complicated by the multiple reasons why it happens. It's estimated that only 34% of transactions are completed; the rest are left unfinished due to things as straightforward as account creation. Other factors include multi-step checkout processes, including those that require consumers to go off-site to complete a transaction. This represents an estimated $18 billion in lost sales every year. That last mile of the shopper journey is critical to success.
Although there is no one-size-fits-all solution, many brands have adopted BNPL options to help mitigate consumer hesitation and streamline the checkout process. However, it's actually creating additional friction when you take a closer look. Many of the roadblocks that create cart abandonment like account creation and additional fees are just exasperated by some of these payment solutions.
Keep customers on-site
Many players in this space require would-be users to go through lengthy off-site account creation and application processes. It's a proven fact that 20% of users will abandon their cart if they have to create an account before they can finish their transaction, so delivering a seamless on-site experience is critical to increase conversions. Splitit, a leading BNPL provider, is the only one that allows shoppers to stay on-site and complete a transaction effortlessly—while extending the payment flexibility that BNPLs provide. Customers love the option and merchants appreciate the increased conversions and higher AOV. When Canyon Bicycles added this option to checkout, they saw an immediate impact and realized a 13% increase in average order value. 21% of Canyon's shoppers chose to pay with Splitit as well, opening up a major payment option that helps customers buy and afford purchases.
This is a perfect example of an inclusive checkout experience that keeps customers on your payment rails and offers added flexibility in payment methods. This helps your customers stay your customers and keeps their respective data within your ecosystem.
Empower purchases, not new debt
Flexible payment options are particularly valuable when it comes to big ticket items and shoppers are looking for a more budget-friendly way to stretch their dollars. There are more than 135 million U.S. shoppers who have established credit and the means to buy high-ticket items but are simply looking for a smarter way to buy. In fact, 52% of Americans state they would use their credit card to make these purchases if provided the option to pay over time without any interest or fees. Of all the BNPL options available, Splitit is the only one to not charge any interest or fees - ever. No new accounts, no applications, no fees, and shoppers still get to accumulate loyalty points and membership miles with their favorite card(s), so many end up spending 20% more per order.
This is an ideal way to reward shoppers for building good credit and leveraging it to buy the things they want and need with manageable monthly payments. Splitit clients have seen 78% higher conversions when introducing the BNPL option to their checkout process.
Attract qualified consumers
As a merchant, you know the best customer is the one that is happy with their shopping experience, comes back for more, and shares positive reviews. It is also the shopper that has the credit and means to afford their purchases. Splitit realizes the importance of a simple, seamless shopping and checkout experience and helps qualified consumers use their credit cards differently to bring high-end products within reach. Splitit caters specifically to an older, established customer that wants to pay smarter, make their credit work harder, and stretch their dollars further. In many ways, it makes luxury more affordable and converts high ticket wish list items into purchases. From premium Italian shoemakers and one-of-a-kind timepieces to investment purchases like greenhouses, Splitit merchants have expanded their customer base and made purchases an immediate reality. "Splitit is such a different concept than anything else out there. I don't know why more retailers aren't taking advantage of what they have to offer", shares Vishal Batwara, owner of GemsNY.
It is also important to note that many BNPL solutions offer very low credit limits which make it impossible to utilize this option for big-ticket items which is exactly the time when shoppers need it the most. With Splitit, the shopper is only limited to what is available on their credit card.
Every BNPL solution out there will boast increased conversions and higher AOV, but look closely at the details. How much are they really helping? Splitit is the only BNPL solution that makes it possible to keep customers on your site throughout the checkout process and as a result Splitit's AOV is 4x the competition. Plus, the Splitit technology leverages existing credit cards, so customers never have to fill out a form, create an account, or pay any fees. This attracts a more qualified customer that has established credit and now enjoys the flexibility to afford big-ticket items and keep their personal finances on track. This keeps their payments small so they get to keep more of their money to spend the way they want – up to +20% higher AOV.