BNPL (Buy Now Pay Later) is increasingly gaining popularity in Malaysia and businesses are catching up to meet the change of consumer demands and diversity their payment options.
It’s not hard to see why BNPL is so popular, it offers that sought-after flexibility for customers and directly boost sales and cash flows for business. However, for many businesses, the thought of integrating such a system can seem daunting and complex.
That’s where a payment terminal step in, simplifying the process and opening up new avenues for growth.
What is a Payment Gateway?
Before diving into the importance of BNPL integration, it’s good to understand what an online payment gateway is. Basically, it acts as a digital middleman, securely processing online transactions between customers and businesses.
This allows for seamless payments, regardless of the customer’s chosen method, and is a key component of modern e-commerce.
How Payment Gateways Simplify BNPL
Adding BNPL functionality directly can be complex, involving coding, security protocols, and compliance requirements. This is where a good payment gateway shines.
Pre-Built Integrations
Reputable gateways provide readily available plugins and APIs. These tools allow for quick connection to BNPL providers, reducing the need for extensive in-house development or hassle.
Businesses can therefore easily implement BNPL into their business with minimal technical effort, leading to a faster setup and a reduced dependence on specialised technical knowledge.
Unified Platform
Payment gateways frequently lump a variety of payment options into a single interface, making it versatile and convenient for businesses. This consolidation simplifies the management of transactions, as businesses can view and track all payment methods, including BNPL, in one simple device.
An added benefit of a single platform is that it also simplifies the financial reporting and audit process, making it great for businesses who like to be informed.
Security and Compliance
Gateways take on the responsibility of managing PCI DSS (Payment Card Industry Data Security Standard) compliance and implementing robust fraud prevention measures. This protects both the business and its customers from potential security breaches and financial losses.
By entrusting these tasks to a professional gateway provider, businesses can focus on their core operations, knowing that their payment transactions are secure.
Simplified Transactions
Payment gateways are built to deliver a smooth and efficient transaction experience. This reduces cart abandonment and prevents customer frustration from long queues, leading to a seamless checkout.
Better yet, self-checkout options allow staff to focus on other tasks while customers get the satisfaction of completing their own transactions.
Cost Effective Solution
Utilising a payment gateway eliminates the need for businesses to invest in developing and maintaining their own bespoke payment systems, which can be very expensive to create and maintain.
This results in significant cost savings, making gateways very cost effective especially for small and medium-sized enterprises.
Choosing The Right Payment Gateway For BNPL Integration
While payment gateways generally simplify BNPL integration, not all gateways are created equal. Businesses need to consider a few key factors when choosing a gateway that best suits their needs and interests.
BNPL Provider Compatibility
First and foremost, confirm that the payment gateway integrates seamlessly with the BNPL providers you wish to offer.
In Malaysia, this might include popular local and international BNPL services like GrabPay, PayLater and Atome. A gateway with extensive BNPL provider partnerships will give your customers more choices and increase transaction volume.
Transparent Pricing and Fees
Payment gateways have different pricing models, and it’s pretty important to understand the costs associated with BNPL transactions.
Keep your eyes peeled for transparent fee structures with no hidden charges. Consider transaction fees, monthly fees, and any potential chargeback fees. A cost effective payment gateway that you can understand is always the best.
User Experience and Mobile Optimisation
If your customers find the checkout process tedious or confusing, then chances are they aren’t likely to return. Therefore, the payment gateway must offer a streamlined and user-friendly experience across both desktop and mobile platforms.
Given how phone addicted Malaysians can be, a mobile-optimised gateway is pretty much essential as it facilitates seamless BNPL transactions, thereby increasing the likelihood of successful purchases. Do not ignore long load times and technical hiccups, those few seconds add up quickly.
Customer Support and Technical Assistance
After sales service is important, especially when money is involved. In case of any issues or technical difficulties, reliable customer support during peak times and long queues is important.
Look for a payment gateway with responsive support channels, such as phone, email, or live chat. A gateway with clear documentation and tutorials can also help with troubleshooting and setup.
Scalability and Future-Proofing
Choose a payment gateway that can scale with your business as it grows. The credit card machine should be able to handle increasing transaction volumes and adapt to future payment trends, including new BNPL providers and technologies.
Conclusion On BNPL Integration And Payment Gateways
The decision to integrate BNPL into your business isn’t just about keeping up with trends, it’s about offering your customers the flexibility they come to expect. Behind the complexity of transactions lies a payment gateway, be it for BNPL, cards, or e-wallets.
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Paydibs is your all-in-one payment gateway Malaysia businesses rely on — offering seamless integration, smart terminal solutions, fast processing, and real-time financial tracking.
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Frequently Asked Questions About BNPL Integration And Payment Gateways
How Long Does BNPL Integration Take Through a Payment Gateway?
Integration time varies, but with pre-built plugins and APIs, it can often be completed within a few days, minimising disruption to business operations.
Will Integrating BNPL Increase My Transaction Fees?
BNPL transactions might incur different fees compared to standard card payments, so it’s vital to compare fee structures offered by the payment gateway and BNPL provider.
Can I Offer BNPL for Both Online and In-Store Purchases?
Yes. Many payment gateways support BNPL for both online and in-store transactions, offering businesses flexibility in their sales channels.
How Does a Payment Gateway Handle BNPL Returns and Refunds?
Payment gateways facilitate the communication between the merchant and BNPL provider, but return and refund policies are ultimately determined by the BNPL provider’s terms.
Do I Need Technical Expertise to Integrate BNPL Through a Gateway?
Not at all. Most gateways provide user-friendly plugins and APIs, reducing the need for extensive coding expertise, making integration accessible to businesses with limited technical resources.
What Data Analytics Can I Get From a Payment Gateway to Optimise BNPL?
Gateways often provide data on BNPL transaction volumes, customer demographics, and purchase patterns, helping businesses tailor their strategies.
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