3 Reasons to offer ‘Buy Now, Pay Later’ options for your events
Anyone partial to online shopping will be familiar with the concept of ‘Buy Now, Pay Later’ financing - these have become standard options at checkouts across the globe in recent years. As the name suggests, Buy Now Pay Later (BNPL) allows consumers to delay payment, or even split it into instalments.
The benefits of this type of financing are clear. While credit cards aren’t an option for all, and often come hand in hand with high fees, BNPL services offer near automatic approval, and lower interest rates. So why should this matter to you as an event organiser? We’ve pulled out 3 reasons.
1. It makes your events more accessible
Offering flexible payment options will open your events more accessible to those less able to readily spend money up front. With the cost of living continuing to rise globally, the proportion of the people living payslip to payslip will increase in tandem. Offering the ability to delay or slice up payment could make your events available to a wider pool of people, only increasing your conversion rates as a result.
2. It can help you attract new audiences
Offering BNPL could make your events appeal more to those who favour this payment method. And crucially - it can help you appeal to a younger audience. Most of the growth in BNPL has been fuelled by Generation-Z, with finance publication PYMNTS reporting Gen-Z comprising 40% of all users. If you’ve found the average age demographic attending your events has held steady since the pandemic (or even risen, like many organisers have seen) this is a great way of attracting the future of racing.
3. It can encourage your participants to spend more
This one’s self explanatory - asking participants to spend less up front encourages an increase in the value of final purchase. According to a press release from QuadPay, merchants using BNPL can increase their average order value by up to 60%. This will be of particular interest to those with higher ticket price events, or those who offer merchandise or add-ons as part of their offering.
Klarna on LDT
With all the above in mind, we’re excited to say that we're now working with Klarna, the market leader in BNPL, to help you grow your events and attract new audiences.
2 million transactions are made daily through their products, while a recent survey of their users showed 30% only completed their purchase because Klarna's financing option was available. With cost of living the topic on everyone’s minds, we're providing you with another way to attract, convert & retain participants.
Two new options are now available for your events:
- Pay 30 days later: Complete the payment in full after purchase at no added cost
- Pay in 3 instalments: Spread the cost of purchase into 3 interest-free instalments. The first payment is made at point of purchase, with remaining instalments scheduled automatically every 30 days.
For more details, and to find out how to get Klarna enabled for your events, check out the guide on our partner help centre.
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