Synapi, the leading lending software provider, today unveiled its Buy Now Pay Later (BNPL) platform to help merchants achieve higher sales by offering more of their shoppers suitable financing. It’s predicted that the global BNPL market will continue to grow at 22% per year in the coming decade and be worth an estimated $31 billion by 2028. Synapi will offer both B2C and B2B merchants its proven technology and know-how – easily accessed through APIs – gained over the past decade extending over 3.5 million loans to customers of its parent company, Gain Credit.
It’s estimated that merchants lose 40% of potential sales due to the lack of financing for their shoppers. In further polling, more than a third of customers said they’d be more likely to shop at a merchant offering financing, while a quarter said they’d likely spend more with financing. And nearly 30% of shoppers said they’d be more likely to return to a merchant in the future if financing were available.
All this means that merchants offering financing that’s easy for their shoppers to understand and obtain will maximize both revenue and customer engagement in today’s environment. And flexibility is key too. As shopper demographics evolve, it will be important for merchants to tailor the financing user experience and product structure to their shoppers’ needs, and to do so quickly and efficiently. Nearly 60% of shoppers find financing too expensive, while a quarter find the experience of acquiring financing too lengthy and confusing – leading to high rates of cart abandonment.
Having served more than a million UK customers since 2008, Gain Credit has developed an industry-leading platform and data analytics/AI capability, which Synapi is now using to enable merchants to offer their own BNPL products at the point of sale. Synapi’s platform covers the full spectrum of BNPL activities, including the application process, credit decisioning, customer onboarding, payment disbursement, customer service and collections – all fully compliant with applicable regulations. And the platform can be tailored to deliver the user experience merchants and their shoppers want, or adopted as-is, in which case it’s ready-to-go ‘off the shelf’.
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“Our platform has been improved and battle-hardened over the past decade and we’re delighted to now offer it to merchants, to power their own BNPL financing programs,” said Vijay Sachidanand, CEO and co-founder of Synapi. “If no customization is needed, all a merchant has to do is connect through our APIs to get a BNPL offering up-and-running in days. Synapi’s tech stack and machine learning capabilities integrate seamlessly with merchants’ existing operations, and no financing expertise is required from the merchant. Our goal is to give merchants more control of the credit they offer their customers, so that financing is available to every shopper who wants it and no shopping cart is left behind.”
Synapi is currently in partnership discussions with merchants operating in a range of areas, including everyday consumer goods, jewellery, furniture, travel (holidays), home improvement, medical procedures and educational programs. Average ticket sizes and shopping frequency vary, typically ranging from £100 to £5000 while most purchases are recurring. 42% of shoppers polled believe that businesses could do more to offer suitable point of sale financing, and Synapi is dedicated to helping merchants achieve this.
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