According to the data-oriented prophecy of Statista, global eCommerce sales are expected to rise to 246.15% by 2021, from 1.3 trillion in 2014 to 4.5 trillion in 2021. And this market is showing no sign to slow down. With time, it’s going to evolve from an option into a necessity.
More than fifty eCommerce portals like Zomato, FreshMenu, Nykaa, and Voonik have partnered with fintech startups providing consumers the option to pay later.
According to industry estimates, cart abandonment rate on eCommerce portals is 60–70 percent, implying 70 in every 100 customers who are planning to buy a product, don’t buy it. The reason could be any, like payment gateway failure, product out-of-stock, lack of credits or discount or just a second thought.
We live in a cash-oriented community where any purchasing offer is considered completed only after making the payment. However, the ‘after-pay’ concept is going to bring a revolution in the eCommerce world. Few renowned names who tied up with giant eCommerce platforms for ‘after-pay’ assistance are ePayLater and LazyPay.
“This is basically the intersection of three vital elements of digital payment—cashless, convenience and credit—which are all emerging trends especially with the country’s move towards digitization,” said Akshat Saxena, co-founder of ePaylater.
For consumers it is a frictionless transaction, eliminating the need for repeated OTPs, CVV numbers or net banking details. Different portals have different payment structure. With ePaylater, a consumer has to settle the bill within the next 14 days. The companies can also take legal action for prolonged non-payment.
The after-pay methodology has its own set of advantages and disadvantages, but for sure it’s going to be an influential market trend attracting more consumers!