ACI WORLDWIDE, INC.

(ACIW)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

ACI Worldwide : Making the Most of Buy Now Pay Later – A Merchant's Guide

01/19/2022 | 11:14am EDT

Last month, we looked at some of the current challenges with buy now pay later (BNPL) solutions on the market. These included the high rates of credit approval declines, principally because most BNPL providers today only use prime lending. We saw that the cost of BNPL solutions is quite high for merchants, at 3-7 percent on top of normal credit card processing fees.

We also highlighted the confusing shopper experience at checkout, due to numerous BNPL solutions being offered at the same time. Integrating all those solutions individually is a very costly and time-consuming effort for merchants.

So, what should merchants do? Following is a checklist of actions ACI has put together that go a long way toward addressing the challenges BNPL faces today.

One BNPL integration

In order for Merchants, and their customers, to have a much better BNPL experience, they must be able to access multiple types of BNPL lenders through one integration. By bringing together a diverse network of prime, near-prime, and sub-prime lenders under one offering, merchants will enjoy higher consumer approval rates and in turn, increased sales and revenue. With one integration, one contract, and one vendor relationship, merchants will benefit from ease of access and reduced costs.

Simplify the consumer experience, increase acceptance rates

Merchants should look for a payment experience that is much smoother and simplified for the consumer by offering a single BNPL button, instead of several solutions stacked side by side causing potential shopper confusion and cart abandonment.

In addition, merchants should offer a single consumer credit application process to simplify the consumer experience and increase acceptance rates. If consumers only need to fill out one credit application but get access to a host of BNPL lenders integrated within one solution, it drastically increases the possibility of credit approval. In fact, merchants can expect to see up to 85 percent acceptance rate and a higher average ticket price when their BNPL offering includes prime, near prime, and subprime lenders.

Through a single unified BNPL solution, consumers have a much-increased chance of being approved for their purchase, with an option to be approved for an even larger purchase, now or in the future. The credit limit can be as high as $20K USD, thanks to a broad selection of lenders, ideal for high-end luxury retail, home furnishings, travel or home improvements.

Improving the performance of BNPL for merchants

With a better checkout experience and a higher possibility of consumer credit approval, merchants can expect to see some important performance improvements. Consumers want a seamless and frictionless payment experience, so beyond the uplift BNPL already offers merchants, they can expect to see a considerable rise on checkout conversion and a higher average ticket.

If the above criteria for a BNPL solution are met, the credit approval ratings will be where merchants see the biggest gains. With the mix of prime, near-prime, and sub-prime lenders on offer, much of the 70 percent consumer credit declines currently seen today will be converted into happy shoppers.

To learn more about how ACI brings together the right mix of BNPL providers, contact us today.

Disclaimer

ACI Worldwide Inc. published this content on 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 16:13:18 UTC.


© Publicnow 2022
All news about ACI WORLDWIDE, INC.
05/09ACI WORLDWIDE, INC. : Change in Directors or Principal Officers, Financial Statements and ..
AQ
05/09ACI Worldwide, Inc. Announces Change of Chief Revenue Officer, with Effect from May 6, ..
CI
05/05ACI WORLDWIDE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RE..
AQ
05/05TRANSCRIPT : ACI Worldwide, Inc., Q1 2022 Earnings Call, May 05, 2022
CI
05/05ACI Worldwide Q1 Adjusted Earnings, Revenue Increase; Issues Q2 Revenue Guidance
MT
05/05ACI WORLDWIDE : Q1 Earnings Snapshot
AQ
05/05Earnings Flash (ACIW) ACI WORLDWIDE Reports Q1 EPS $0.28, vs. Street Est of $0.23
MT
05/05Earnings Flash (ACIW) ACI WORLDWIDE Reports Q1 Revenue $323.1M, vs. Street Est of $314...
MT
05/05ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended March 31, 2022
BU
05/05ACI Worldwide, Inc. Reports Earnings Results for the First Quarter Ended March 31, 2022
CI
More news
Analyst Recommendations on ACI WORLDWIDE, INC.
More recommendations
Financials (USD)
Sales 2022 1 429 M - -
Net income 2022 153 M - -
Net Debt 2022 - - -
P/E ratio 2022 19,5x
Yield 2022 -
Capitalization 2 984 M 2 984 M -
Capi. / Sales 2022 2,09x
Capi. / Sales 2023 1,99x
Nbr of Employees 3 610
Free-Float 80,9%
Chart ACI WORLDWIDE, INC.
Duration : Period :
ACI Worldwide, Inc. Technical Analysis Chart | ACIW | US0044981019 | MarketScreener
Technical analysis trends ACI WORLDWIDE, INC.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 5
Last Close Price 26,00 $
Average target price 39,40 $
Spread / Average Target 51,5%
EPS Revisions
Managers and Directors
Odilon Almeida President, Chief Executive Officer & Director
Scott William Behrens Chief Financial & Accounting Officer
Charles Kellogg Bobrinskoy Chairman
Ram Puppala Chief Technology Officer
Johan J. Roets Chief Administrative Officer
Sector and Competitors
1st jan.Capi. (M$)
ACI WORLDWIDE, INC.-25.07%2 984
INTUIT INC.-42.26%105 028
FIDELITY NATIONAL INFORMATION SERVICES, INC.-6.82%62 117
ADYEN N.V.-36.13%48 861
WORLDLINE-22.55%11 381
KAKAO PAY CORP.-45.21%10 007