Choose from payment-after-delivery, payments by instalments or payment on credit
As Payment Service Provider, Buckaroo functions as a hub for various payment methods. The most popular payment methods can be found on our overview page. On this page you see the range of payment-after-delivery options expanding rapidly. In e-commerce, it is becoming more common to pay for products or service only after receipt. Buckaroo is able to link these pay-after-delivery payment methods to your check-out and process the payments.
The most customer-friendly payment method for consumers is without a doubt the option to pay after receipt. To an extent comparable to paying on account. Pay-after-delivery provides the consumer a certain degree of guarantee. The consumer may first assess the product before the payment is made. It makes the more insecure online shopper feel safe and creates more incentive for making a purchase.
Buckaroo currently offers six payment-after-delivery options: AfterPay, Klarna, Billink, in3, Tinka and CreditClick. Within this range, AfterPay and Klarna have a high brand awareness among consumers and web shops. With both options, the customer pays 14 days after receipt of the purchase. Tinka and CreditClick are not actually pay-after-delivery methods, but rather credit providers. By using these, as a consumer, you request a deferred payment in the form of a loan. With in3, consumers have the possibility to pay off their purchase in three equal parts, the total amount is divided by three whereby the first part is paid in advance, the second in the following month, and the third part in the month after the second.
Pay-after-delivery payment products offer a payment service: they check the creditworthiness of the consumer, take over the payment risk, and ensure that as a webshop you have the benefits of payment-after-delivery (higher conversion and convenience) and not the disadvantages (chasing your money or non-payment). You cannot compare costs of pay-after-delivery methods with a payment method such as iDEAL and Bancontact. It is not the payment technique, but the service you pay for. But what exactly do you pay? And also interesting: who pays? Does the consumer or webshop pay?
For all payment-after-delivery, in installments or other deferred payments via one of the providers, you as a web shop pay both a fixed rate and a percentage of the purchase amount. Buckaroo offers some payment methods directly, for these we have already done the price negotiation for you.
The answer is yes, you can. However, it is not recommended. Why? Because as a web shop you offer a payment-after-delivery option to the convenience of the consumer and to remove barriers in the payment process. You raise that barrier just as hard by charging extra costs. But does it still yield anything in the end then? In case you would like to experiment with these options, it is strongly recommended to limit the amount that you pass on to the consumer to a maximum of € 1.95. Does the consumer opt for a payment on credit? Then the consumer, just like the web shop, also pays an interest rate on the loan amount. A credit payment can last up to a year after the purchase. The web shop pays for the fact that they can easily and directly sell an expensive product or service without having to wait a year for the money themselves. The consumer pays for the convenience of being able to buy immediately, without having to spend the amount immediately.
Web shops offering payment-after-delivery options benefit from a higher conversion rate, attract a new and broader target group and often see the total purchase amount of the digital shopping cart increase. But how is the web shop protected against the risk of non-payment? And as an entrepreneur, how do you know whether the customer is reliable?
The follow-up of an outstanding payment is a profession in itself and provides the gap in the market to which payment-after-delivery methods respond to. They take over the risk, they do a credit check and advance the amount to the consumer. With this, web shops are assured of their money and consumers of their purchase. In short, post-payment methods remove all objections that web shops may have on payment-after-delivery. It currently makes them the fastest growing payment product in e-commerce.
Post-payment payment method AfterPay and payment provider Buckaroo have strengthened the collaboration. Retailers can now offer AfterPay in 5 countries from one contract with Buckaroo.
Utrecht, 23 July 2020 - Payment Service Provider Buckaroo is expanding its payment products with Bancontact Wallet Initiated Payments (WIP).
You can read this free whitepaper on how to prevent customers from dropping out during the payment process. Offered by Buckaroo in collaboration with MT.nl
The ideal payment method differs per situation, product or service. Because of our wide range of payment methods and unique features, we at Buckaroo are always able to offer you an appropriate solution. Let the following cases inspire you.