Finding the ideal BNPL functionality provider
With continuous growth for the Buy Now Pay Later (BNPL) industry, the number of providers offering BNPL products is also increasing. With so many options, how do you know which is right for your business? In this article, we’ll touch upon critical aspects to consider before choosing the best BNPL functionality provider for your business.
What is a BNPL functionality provider?
A BNPL functionality provider, such as Sileon, is a software company that enables BNPL functionality to other companies.
By using Sileon’s BNPL technology, a bank, lender or fintech can keep favorable consumer credit and financing within their core business, as well as data, customer relations, and branding. On the other hand, complexities, such as instalments, direct invoices, revolving credit, and returns, are handled securely by Sileon’s payment-agnostic platform. This also includes creating customized BNPL products for different countries, markets, and customer segments.
If you’re contemplating including BNPL in your payment offering, here are seven things to keep in mind in order to make an informed decision.
7 things to keep in mind when choosing a BNPL functionality provider
1. Going to market fast
The BNPL market is foreseen to reach $596,7 billion in 2026. With such a huge demand for flexible payment methods, time to market becomes vital. A cloud-based functionality provider lets you stay on top of your offering by launching a BNPL product quickly. With Sileon, that means you can be up and running with your BNPL platform in a matter of weeks.
2. The possibility to scale
A global and market-agnostic platform is essential as it allows you to scale your business to reach different markets and countries.
Furthermore, a BNPL platform should be SaaS-based and able to scale in transactions, products, and customer segments. This will allow you to start small and add customized BNPL products over time as your business evolves.
3. Smooth integration
Whether you are a bank, lender, or fintech, a BNPL platform must be able to integrate swiftly into your existing financial ecosystem while keeping your brand and user interface intact.
By using a SaaS platform that is both scalable and modular, like Sileon’s, you can easily embed it as a model in your core banking system. Or, as a fintech, you can seamlessly plug it into your own platform while still being able to control data and customer journeys.
4. Keeping it flexible and modular
We operate in a digital world, and the financial landscape is rapidly changing, along with customer expectations and behavior. To stay relevant, businesses need a platform flexible enough to cater to the ongoing changes.
Additionally, look for a provider that offers customized payment plans that fit your business needs. For example, the possibility to create personalized offers for your most loyal customers or tailored product offerings for special occasions.
5. Security as a top prioritization
Payment-related products need a solid foundation that never leeks data. Choose a BNPL platform that keeps track of all transactions but without processing or storing the data and customer relations.
The BNPL functionality provider’s system should use the latest encryption techniques and fraud prevention protocols to protect your customer’s data from hackers and scammers. In addition, consider a provider that constantly innovates its technology to keep up with ever-changing security needs while still being able to handle the complexities of both Happy and Unhappy transaction flows.
6. Support and commitment
After the implementation has been made and you are ready to go live with a BNPL offering, you may still need support for continuous development, maintenance and surveillance of the platform. Make sure you team up with a BNPL functionality provider aiming for a long-term commitment.
Last but not least, the ideal BNPL functionality provider should be able to deliver the product within the settled timeframe while still keeping the budget. A modular approach minimizes the risk drastically and allows you to mix and match BNPL credit products and add more as your company grows.
Sileon’s business model is equally beneficial for banks, lenders, and fintechs as the monthly fee is based on the business’s estimated annual transaction volume, plus a recurring variable fee per transaction. This means that the total cost of the BNPL platform correlates with your business’s own revenue generation.
When selecting a BNPL functionality provider, there are several factors you should consider. These include, among other things, scalability, time to market, flexibility, and security measures. With the right partner on board for your business needs, you can rest assured knowing that you will be able to provide your customers with an efficient and secure payment experience every time.
Would you like more information on Sileon’s BNPL platform? Or find out what an integration can do for your company? Details on development and pricing?
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