Latest news with #BNPL
Time Business News
12 hours ago
- Business
- Time Business News
How Do Payment Methods Correlate to Customer Satisfaction?
The way customers pay can significantly influence how they perceive your business. Limited or outdated payment systems can lead to frustration, while fast, secure, and flexible options can make shopping feel effortless and enjoyable. Whether you run an online store or a brick-and-mortar location, the right payment setup enhances the overall customer experience. Explore how offering the right payment methods correlates to customer satisfaction. Customers feel more comfortable when they see payment options they know and trust. Popular choices like credit cards, PayPal, and Apple Pay make checkout feel smooth and secure. If your business only accepts cash or less common methods, you risk losing potential sales. Display accepted payment logos—such as Visa, Mastercard, or Google Pay—on your storefront and website to reassure customers that their preferred method is available. For online stores, integrate widely used digital wallets and ensure your checkout process is intuitive. In-store, use terminals that support contactless payments for added speed and convenience. Train staff to assist customers who may be unsure about their options. While setting up these systems, be mindful of things like merchant account fees, which can vary by provider and impact your bottom line. Familiar, easy-to-use payment methods reduce hesitation and help customers focus on their purchase, not the process. Speed matters—especially at checkout. Long lines or slow systems can quickly sour the shopping experience. Credit cards, tap-to-pay options, and mobile apps like Google Pay or Apple Pay help move transactions along quickly. For in-store purchases, invest in reliable card readers and test them regularly to avoid delays. Online, streamline the checkout process with one-click payment options and saved card details. If a payment fails, provide clear, helpful error messages to guide the customer. Train your team to handle payments efficiently and troubleshoot issues on the spot. In fast-paced environments like cafés or retail shops, quick transactions keep lines moving and customers happy. When payments are seamless, shoppers feel valued—and are more likely to return. Flexible payment options like Buy Now, Pay Later (BNPL) services can make higher-priced items more accessible and appealing. Platforms like Klarna or Afterpay allow customers to split purchases into manageable installments, reducing financial pressure. Clearly promote these options at checkout, both in-store and online, and ensure the terms are transparent. For e-commerce, integrating BNPL into your payment gateway can help convert hesitant shoppers. Subscription billing is another great option for recurring purchases—just make sure to offer multiple payment methods, such as credit cards or bank transfers. Flexibility shows that you understand your customers' needs and are willing to meet them where they are. When people feel financially empowered, they're more likely to complete a purchase and return in the future. Security is a top concern for today's consumers. Offering safe, reliable payment methods builds trust and encourages repeat business. Use encrypted chip readers and tokenized digital wallets to protect sensitive data. Display security badges—like PCI compliance or SSL certification—on your website and at checkout to reassure customers. Ensure your site uses HTTPS for all transactions and offer credit card options with built-in buyer protection. Train employees to handle payment information responsibly and avoid storing sensitive data. If a customer expresses concern, be ready to explain your security measures clearly and confidently. Especially for high-value purchases or online orders, a secure payment process can be the deciding factor in whether someone completes a transaction. Today's consumers expect modern, tech-friendly payment options. Digital wallets, contactless cards, and mobile apps are now standard for many shoppers. If your business only accepts cash or checks, you may lose customers to competitors with more flexible systems. Offer widely used methods like Apple Pay, Venmo, and even cryptocurrency if it fits your audience. Make these options visible through signage or website banners. Upgrade your in-store terminals to support contactless and QR code payments, which are especially popular with younger, tech-savvy shoppers. Staying current with payment trends shows that your business is forward-thinking and customer-focused. When people can pay the way they prefer, they feel understood—and that builds loyalty. Payment options do more than process transactions—they shape the entire customer experience. Familiar methods build comfort and trust. Fast, seamless checkouts reduce frustration. Flexible plans make purchases more accessible. Secure systems protect data and reinforce confidence. And staying up to date with modern trends keeps your business competitive. By prioritizing convenience, flexibility, and security, you create a payment experience that supports customer satisfaction and long-term success. TIME BUSINESS NEWS
India Today
a day ago
- Business
- India Today
Now postmen to deliver CBI Bengaluru's bank fraud branch legal notices
The CBI's Banking Security and Fraud branch and Anti-Corruption branch in Bengaluru will now deliver summonses and legal notices by postmen, replacing the traditional method of manual delivery by investigators as a move to improve efficiency and agency's Banking Security and Fraud Branch and Anti-Corruption Branch signed a Memorandum of Understanding (MoU) with the Karnataka Circle of the Department of Posts on Wednesday to operationalise this to an official statement released on Thursday, the initiative will not only ensure secure, trackable, and timely delivery of legal communications but also lead to significant savings in travel and daily allowances. This will also enable more efficient use of manpower for core investigation duties. As part of the MoU, the dispatch and delivery of summons and legal notices will be done through India Post's Speed Post 'Book Now Pay Later (BNPL)' service and India Post will supply specially designed envelopes and Proof of Delivery (POD) cards bearing the Chief Bureau of Investigation logo and return addresses. These items will be collected directly from Chief Bureau of Investigation offices and delivered to recipients across the country. Signed Proof of Delivery cards confirming delivery will be returned to the Chief Bureau of Investigation, with full tracking available via the India Post centralised dispatch will be managed through the RT Nagar Head Post Office in Bengaluru, with pickup services available on all working days. 'Delivery timelines will range from one to five days, with provisions for re-delivery and free return of undelivered items. It enhances transparency, accountability and delivery efficiency, particularly in rural and remote areas and serves as a model of synergy and inter-agency collaboration in public service delivery," the statement by Debosmita Maity IN THIS STORY#Karnataka
Yahoo
a day ago
- Business
- Yahoo
Affirm expands partnership with Williams-Sonoma into Canada
Affirm (AFRM) announced the expansion of its partnership with Williams-Sonoma (WSM) into Canada, building on their existing U.S. collaboration. This brings Affirm's pay-over-time options to Canadians shopping at Williams-Sonoma's brands, including Williams Sonoma, West Elm, Pottery Barn, Pottery Barn Teen, Pottery Barn Kids, and Mark & Graham. Approved Canadian shoppers can now split purchases into monthly payments with no late or hidden fees. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on AFRM: Disclaimer & DisclosureReport an Issue Mixed options sentiment in Affirm Holdings with shares up 4.41% Affirm (AFRM) Navigates BNPL Paradox as Growing Pains Weigh on Sentiment Klarna's IPO Is on Thin Ice as Q1 Losses Double to $99 Million Mixed options sentiment in Affirm Holdings (AFRM), with shares down $-4.81 (-8.51%) near $51.74 Affirm Stock (AFRM) Surges after Revealing New Deal with Costco
Gulf Today
2 days ago
- Business
- Gulf Today
Over 13m people in UK face ‘tough' financial problems
The concerning lack of ability for some people to cope with unexpected costs has been revealed as new data showed one in ten (10 per cent) of UK adults have no cash savings whatsoever, leaving them vulnerable when faced with increased bills. More than 13m people across the nation are thought to be facing tough conditions financially, including amassing debt, have little savings or have missed paying bills. While the headline figure of ten per cent having no savings at all is a worry, findings from the Financial Conduct Authority (FCA) actually show a far greater scale of people who have minimal ability to manage any sort of shock to their income, with a further 21 per cent having less than £1,000 saved. Most financial experts agree that individuals or families should aim to build an emergency savings buffer of three to six months' worth of essential expenses, depending on circumstances, according to the Independent. This can aid to continue paying bills and essential costs like groceries, rent or mortgage repayments in the event of sudden pressures, like health emergencies, loss of work or even surging inflation. In addition to not having enough savings, the FCA data underlined two further issues: 2.8m people who have persistent debt through credit cards, which can be one of the most expensive ways to hold debt, along with a continuing rise in people using buy now, pay later (BNPL) services. More than a third of women (35 per cent) aged 25-34 use these services and a full 40 per cent of single parents do so. While some of these services do not necessarily always charge interest initially – some do of course – missing payments can be extremely costly and building up bigger repayment costs can potentially push greater debt on peoples' future. StepChange, a charity which helps with free advice to people struggling with debt, said in a statement they 'want to see the Government invest in safe options for those who can't afford to save to cope with unexpected costs, including a permanent national crisis support scheme, building on the Household Support Fund and a national no-interest loan scheme, and by working with the financial services industry to expand affordable, low-cost credit.' The FCA also shared encouraging data from those who do seek help. From 1.7m people using debt advice or services in the past year, 61 per cent 'said their debts were more manageable' in the aftermath. Compare the Market data shows more than half (52 per cent) of Gen Z – aged 16 to 28 – do not have a 'rainy day fund' for emergency expenses, while more than a quarter (27 per cent) of all people who do have one have needed to use it recently to cover increased household bills and other essential expenses. Research by wealth managers St. James's Place shows more than a quarter of the nation feeling anxious about the year ahead in monetary terms. Alexandra Loydon, director of advice, said: 'Economic challenges remain, so it's more important than ever to take steps to make your money work harder. While building a financial plan may seem daunting, especially if you've never done one before, this really shouldn't put you off., the Independent report adds. 'Identifying your key financial goals and assessing your current financial situation are the simple places to start. From there you should focus on building your emergency fund by putting aside a small amount of money each month and ensuring you're getting the best rates of return. 'While these may seem like small steps, they all help you grasp your financial situation and take action to improve it, making a real difference to your financial resilience both now and in future.'
Telegraph
2 days ago
- Business
- Telegraph
How Klarna created a nation of shopaholics
In just a few clicks, that big-ticket purchase you've been mulling over for weeks is reduced to a trifling monthly fee – or postponed until after the next payday. Buy now, pay later deals (BNPL) have long been offered by retailers to help spread costs of big purchases. But Klarna, a Swedish lender specialised in the form of consumer finance, is making them ubiquitous. Emma Reynolds, Economic Secretary to the Treasury, this month said companies like Klarna were operating in a 'wild west' devoid of adequate regulation, as the Government confirmed long-awaited new rules for the sector akin to those followed by banks and other financial institutions. Klarna is increasingly offering the BNPL payment option for more than just one-off big purchases. Everything from haircuts to takeaways can now be snapped up by its users on zero-interest deals merely by filling in a few extra details at online checkouts. It is a formula that won the company an extra million British customers last year, with 11 million now using the service. But there is growing disquiet over whether companies offering BNPL are fuelling imprudent consumer spending. Klarna first courted controversy for its marketing campaign during the depths of Britain's Covid-19 lockdowns. Posts on Instagram by influencers promoting the product at the time called it a 'total mood booster' that enabled them to 'splurge' on their shopping, earning Klarna admonishment from the advertising watchdog in 2020 for having 'irresponsibly encouraged' the use of credit. There are good reasons why consumers have been flocking to BNPL companies like Klarna in recent years. The interest-free deals beat the easily high levels of interest charged on most credit cards. Klarna estimates it has saved UK consumers £470m in credit card interest payments since it began operating in 2014. Data published on its website from 2023 also claims just 5pc of its users made late payments, while the majority fully repaid earlier than needed. BNPL companies typically offer options to pay the full amount on a product right away, split the payment into three equal interest-free payments, or delay the payment for 30 days without paying any interest. Similar offers have also been adopted by payment platform PayPal. Call for affordability checks Klarna, as well as one of its largest competitors, Clearpay, have long been able to sell credit to consumers without affordability checks. Unlike banks, consumers cannot make complaints about the companies to the Financial Ombudsman Service (FOS), which can order firms to pay out compensation in cases where they are found to have acted unfairly. The absence of stringent regulation of BNPL has long sparked calls for tougher measures. New rules were finally confirmed by Labour this month, and will come into effect by the middle of next year. The Financial Conduct Authority will require BNPL operators to conduct affordability checks on their customers, who will be able to bring complaints to the FOS for the first time. Stella Creasy, the Labour MP who raised the complaint over Klarna's Instagram adverts in 2020 with the Advertising Standards Authority, described BNPL companies as 'legal loan sharks'. The MP for Walthamstow singled out the late payment fee charged by the company, which is £5 for orders worth £20 or more, according to Klarna's terms and conditions. Late repayment fees are capped at £10 per order. She has previously made the same criticism of BNPL operators in the House of Commons. Ms Creasy said: 'Given the rapid growth of BNPL in the past few years, it is vital we regulate these legal loan sharks as quickly as possible to try to stem the debts they have pushed so many into.' She also warned of potential loopholes in new rules, which are yet to be finalised in law. 'I urge the FCA to be vigilant and not to rule out acting if these providers try to avoid accountability under these new rules by portraying themselves as working for retailers who aren't covered by these requirements rather than lending money to consumers [directly].' The new regulations are not expected to cover instalment financing deals offered by retailers themselves, presenting potential limitations of their effectiveness. Ms Creasy added: 'But frankly, given the scale of the problem, the sooner these come into force the better.' 'Loans to fund day-to-day spending' Most people using BNPL primarily purchase physical goods, such as technology, clothing and wellness products – according to payments platform Stripe. But there is evidence to suggest that an increasing number of people who use BNPL firms, not only Klarna, are buying day-to-day essentials. It has led to concerns that, instead of using the service for one-off large expenses that are easier to pay over time, consumers are turning to BNPL as a way to fund regular shopping. Klarna has significantly expanded the range of retailers where it is available, with M&S and John Lewis recently partnering with the company. Users can now download a 'one-time card' worth a fixed amount that sits within digital wallets like Apple Pay to be used in person at shops. A survey by Money Wellness, a debt advice company, found a 68pc increase in the number of people seeking help to repay BNPL debt in the past year. The average balance of those seeking debt support rose from £675 to £941 during that time. Sebrina McCullough, of Money Wellness, said: 'We've seen a significant rise in people struggling with 'buy now, pay later' debt, often because they've used it to plug gaps in everyday budgets. For many, it's become a way to spread the cost of essentials, like food shopping, rather than to cover large expenses.' Tom MacInnes, from Citizens Advice, has also noticed this trend. He said: 'We're helping more people than ever before who are struggling to repay unaffordable BNPL credit, and one thing is clear – BNPL is not a choice of convenience. For many, it's become a costly way to pay for basics, with little protection if things go wrong.' Klarna has become so widespread that it is available on takeaway apps including Deliveroo and Uber Eats. There are even some hair salons on Klarna's website that are listed as accepting the form of payment, for which users must pass a credit check before being approved. Most BNPL companies, including Klarna, limit the amount of loans a customer can take out based on their credit rating, allowing a customer with a good repayment record to stack up debt over time. Limits on the individual value of transactions and restrictions are imposed on accounts if they miss payments. Alice Tapper, a personal finance campaigner and author, said the spread of BNPL companies such as Klarna to pay for food was not the best use for the form of payment, but said it helped shoppers who were 'locked out' of obtaining credit cards. 'Is it a net positive? I think it depends on its use. There is a role for it in the market when you consider the cost of credit can be extremely high, and many people find themselves locked out of the financial system. An interest-free option is a good thing. 'It's now available on Deliveroo. Is that a good thing? Probably not; it's hard to argue it's an ethical use.' Ms Tapper added that the target users of BNPL should be 'people who have a one-off large expense, such as costs associated with moving house', for whom 'it [doesn't] make sense to put such purchases on a credit card with high interest that might spike'. 'Not as bad as payday lending' Martyn James, a consumer expert, came to the defence of BNPL companies, including Klarna. He said the sector had 'become a bit demonised over the years, which is a little unfair, as it's not the same as payday lending – which traps people in an endless cycle of debt'. He added: 'You'll be hard pressed to find an online shop that does not have a BNPL option, and the reason it is so popular is that it encourages people to make purchases they don't have the money to make.' However, Mr James said this was concerning at a time when household savings are increasingly low in Britain: 'A lot of people swear by [BNPL] and say paying in instalments makes it easier. 'One in 10 British adults has no cash savings, according to FCA research, making this form of borrowing risky for some. 'But there are loads of people who have no savings whatsoever and live pay cheque to pay cheque. What happens if you get hit with an unexpected bill or are laid off and you can't make that payment?' Klarna refers its customers to debt collectors if payments are not made by the last reminder due date. 'They're not hitting people with large amounts of debt charges, but they are handing people over to debt collection agencies which are aggressive,' he added. New rules to lower risks New rules will target BNPL lenders where they are acting as a third party between retailers and consumers, while instalment plans offered by shops are expected to remain exempt from stricter requirements. Firms offering pay-later financing will be required to conduct affordability checks that determine whether a consumer can afford to pay for a product over the loan period. This usually includes asking for details such as someone's income and regular expenditure each month. It is hoped that new regulations of BNPL will cut the risk of consumers using it for 'frivolous spending' and limit the deals to high-value items. Ben Perks, managing director of Orchard Financial Advisers, welcomed the new rules and said: 'Many people succumb to the ease and appeal of BNPL, but it often turns into a thorn in their side.' He added: 'The lack of responsible lending often sees borrowers over-exposed and stuck with unaffordable payments. With proper checks and balances, there is a place for buy now, pay later, especially on high-value essential items. But it shouldn't be a means to fund frivolous spending.' A Klarna spokesman said: 'With credit card interest rates soaring to record highs of 35pc, more people are turning to interest-free BNPL providers like Klarna. 'We believe UK consumers deserve a fairer alternative – wherever they can pay with a credit card, they should also have the option to pay with interest-free BNPL, helping them avoid the trap of high-interest credit card debt.'
