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How Can B2B SaaS Providers Set Up and Manage Flexible Payment Options
Integrating and managing Buy Now Pay Later (BNPL) options may seem challenging. But there are several practices that businesses can follow to set up flexible payment options successfully. In this article, we will discuss how SaaS providers can integrate and manage BNPL options effectively, so they can provide a seamless BNPL experience to their customers.
How to Integrate Flexible Payment Options
Offering flexible payment options to your customers has many benefits for your business. But how do you implement them? We have prepared 5 easy steps for you to follow, so you can integrate BNPL with your existing B2B payment system successfully.
1. Choose a BNPL provider
There are many BNPL providers in the market. Make a list and select the provider that fits your business needs best. Our top picks of BNPL providers for SaaS [link] may help you, check it out. You should consider factors like fees, integration options, and customer experience when selecting a provider.
2. Integrate the BNPL provider’s API
Once you have selected a BNPL provider, you will need to integrate their API with your existing payment system. This will allow your customers to select BNPL options during the self-serve checkout when making a purchase. Integrating a BNPL API into a payment gateway can take anywhere from a few days to several weeks, depending on the complexity of the project. For example, Comfi will take around 7-10 working days depending on your backlog.
3. Update your payment gateway
You will need to update your payment gateway to allow BNPL payments. This will involve adding the BNPL provider as a payment option and configuring the payment terms, such as payment schedules, interest rates, and late fees.
4. Communicate with your customers
It’s essential to tell your customers about the new flexible payment option. You can do this by displaying it prominently on your checkout page and product page, by sending targeted emails and writing about it in your social media. Also, train your sales team to mention the BNPL option when they are talking to the prospects.
5. Test and monitor
After the integration, you should test it thoroughly to ensure that customers can complete their transactions without any issues. In addition, you will need to monitor the usage of BNPL options to ensure a smooth experience for your customers.
Best Practices for Setting Up Flexible Payment Options
When setting up BNPL options, there are several best practices to keep in mind.
- It’s essential to price your product with BNPL payment options competitively to attract customers. However, don’t go overboard with discounts, they may give you higher churn in the future.
- You should be transparent about the fees associated with your BNPL options. Fees usually include interest charges or processing fees, and are paid by you as a vendor. But if a BNPL provider includes the fees in your customers’ bills, you should clearly communicate it to your customers.
- It’s essential to set a minimum and maximum order value for your BNPL options. Setting a minimum order value ensures that the cost of processing the BNPL transaction is not more than the revenue generated from the sale, if the BNPL provider takes a flat fee for their services. A maximum order value may be set by the BNPL provider, depending on what sum they can lend to a customer.
- A simple and streamlined checkout process can help improve the customer experience and increase the likelihood of customers completing their purchases. Make sure that the BNPL option is easy to find and select during checkout.
- Offering multiple BNPL options can help accommodate different customer needs and preferences. You can offer longer repayment periods or different ways of paying. For example, Comfi offers payment at self-serve checkout and through a payment link that you can generate from Comfi’s dashboard and send to your customer.
How to Manage Customer Accounts and Payments with Flexible Payment Options
You don’t need to. The BNPL provider does the job. That’s the best part.
According to Flywire, 50% of B2B companies spend up to 10 hours per month managing payments, which could otherwise be devoted to other crucial business priorities. And it’s just one aspect of the manual accounting efforts. In addition to managing payments, there are other operational tasks, such as setting up accounts for customers and performing identity and credit checks. These tasks can be time-consuming and require considerable effort and resources.
However, by partnering with a BNPL provider, businesses can alleviate these challenges. BNPL providers often offer automated processes for managing customer accounts and payments, which can help streamline operations and reduce manual accounting efforts.
Furthermore, BNPL providers run credit checks and prevent risks. Some providers have their own algorithms for assessing customer creditworthiness, which help them quickly and accurately evaluate risk. In case of low creditworthiness, the BNPL provider declines customer financing, and the customer has to choose another payment option and pay the whole sum upfront.
Moreover, BNPL providers collect payments. They get payments from the customers during the repayment period, and pay you the whole sum upfront within several hours or days after the customer made the purchase. They also manage dunning, in case a customer is overdue with their payment.
We hope our actionable steps and practices will help your business set up your new BNPL solution effectively and close more deals through flexible payment options. Partner with a reputable BNPL provider to automate processes and reduce resources and time wasted on managing payments. By offering flexible payment options, you can improve your overall financial performance and stay ahead of the competition.
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