Pay Later: Providing more options

With the help of some industry experts, we look in to why you should consider offering a Pay Later service in your business.

With the cost of living rising dramatically, inevitably consumers are looking at alternative ways to cover their tracks when it comes to paying, or extending the time they have to do so. Enter: Buy Now, Pay Later (BNPL) – an agreement which allows people to purchase goods on credit and pay for them at a later date.

 

Granted, it’s a little different when it comes to paying later for your new locks rather than a pair of trainers, but that’s not to say it can’t be done! Whether clients come to your salon, enjoy their treatments and spread the cost over three months or if they buy retail products from your shop floor and agree to pay at their next appointment – these arrangements can have benefits for both you and them.

 

Paige Clarke, Business Development Manager, Hair and Salons at Payl8r believes that the benefits with a BNPL provider can be quite immediate: “To name a few; you can attract many new clients and increase the spend of your existing client base. Customers are likely to spend more money as they don’t have that initial outlay all at once and have the ability to make monthly affordable repayments to suit their current circumstances. Getting the hair they want, now.

 

“Retailers can be savvy when using the Payl8r option, you are at full discretion of the services your customer wishes to finance, whether it is a new set of hair extensions, colour treatments or even maintenance appointment – our in-store option has you covered.”

 

Payl8r offers a unique feature to the Buy Now, Pay Later industry as they we have the technology to run affordability checks – where they can essentially assess the client’s ability to make repayments, taking into consideration their typical monthly spend. .

 

In Payl8r’s ethical approach, they wouldn’t allow potential customers to get into unmanageable debt should they not be able to afford it, meaning there is nothing for you to worry about when offering this service.

 

It’s safe to say we are now living in a generation of Buy Now Pay Later – with the decline in credit cards, Covid and the increase in cost of living, Payl8r are well aware that people’s disposable income may not be what it was.

 

Payl8r allows customers to spread the cost of their hair treatments up to 12 months, meaning the monthly outlay is far more manageable than your typical credit card bill.

 

Paige explained that one of the most important factors to take into consideration when choosing your finance partner, is whether the lending is ethical.

 

Payl8r are fully regulated by the Financial Conduct Authority, meaning you and your clients are protected from a legal standpoint, and there will be no risk to you as the retailer, meaning Payl8r takes on the full risk and responsibility of the lend.

 

As a salon, you’d likely look into the most comfortable option for your customers and Payl8r can offer a system that is tailored to you and your business, whether it be an online integration or the in-store option, we provide a solution at the point of sale.

 

Judging from the number of salons coming onboard or requesting Pay Later services, Paige sees that standing out to new clients without a BNPL option is becoming quite difficult: “Offering a split payment option over a number of months, you don’t need to turn away business or reduce prices to compete with other salons in your area.” Added Paige.

 

Leaders in providing salon supplies across the country, Simply Hair recently made the decision to offer the Pay Later service on their website in order to appeal to a broader audience.

Amy Filippaios, Founder at Simply Hair believes that implementing a Pay Later feature will have an overall positive effect on their business, as it is something their customers have been requesting for a while now: “It was important to us that we listened to that feedback and introduced this feature to our business.”

It’s now about keeping up with the demands of the industry and not wanting to fall behind. Simply Hair are  a business with customers who will often purchase goods ahead of their client’s appointment and before receiving the full payment for the service so offering a Pay Later service will likely improve their own customer’s cash flow. Amy added: “As our customers businesses are at the heart of what we do, it was a no brainer to offer them this level of flexibility when purchasing from us.”

 

Amy thinks that the reason for the popularity growth in Pay Later options are due to the fact they assist with money management. Used correctly and sensibility, they are a great way to improve business cash flow.

 

We asked Amy if she thinks that businesses who don’t offer pay later services will fall behind due to missing a trick to which she said: “Not necessarily. I don’t think they will fall behind as such as there is still a large portion of the population who don’t use Pay Later services when buying goods, however, I think having this option is very appealing, and managed correctly can be beneficial to both business and customer.”

 

When deciding whether or not to introduce Pay Later services to your business, the most important thing that salons should be looking at is the payment terms and set up costs. They vary massively between each service provider, so it’s important to shop around to make sure you are getting the right deal for you. For any more information on this topic, please don’t hesitate to get in touch!