Neiman Marcus has announced a partnership with buy now, pay later (BNPL) payment solution provider Affirm to enable flexible payments for customers looking to purchase luxury and designer items.
Customers who are eligible to utilize the Affirm offering can access their favorite designer fashions or accessories online, including items from the iconic 2020 Neiman Marcus Christmas Book, all while enjoying the perks of paying for their purchases over a period of time that best fits their needs and budget, according to the company.
Customers can select the Affirm payment option once at checkout and split the total cost of the purchase ( must be $50 or more) into a series of payments that are to be made anywhere from six weeks to 36 months, all depending on the customer’s cart size, for as low as 0 percent APR. When utilizing the service, customers are made aware of the total cost of their purchase up front, which is aimed at helping eliminate any fear of being charged late or hidden fees.
“We know that consumers care a lot about price transparency and are increasingly eager to buy upscale fashion now and pay over time. We’re thrilled to partner with Neiman Marcus, an iconic brand that shares our commitment to providing a best-in-class customer experience, to make their luxury products even more accessible,” said Silvija Martincevic, Chief Commercial Officer, Affirm.
“By delivering a transparent payment option without penalties, we’re giving more consumers the confidence to shop the way that works best for their budget, especially so they can look and feel their best going into the holidays.”
The offering comes at a time where flexible payments are leading the way to drive overall sales as well as average order sizes.
“Neiman Marcus was founded on the principle of building long-lasting and meaningful relationships with our customers. We are committed to providing all shoppers with access to leading luxury fashion and high-end products, paired with superior service,” said Katie Mullen, Chief Digital Officer, Neiman Marcus Group.
BNPL service offerings have also become a critical component in driving customer loyalty and repeat purchases. In fact, according to eCommerce payment provider PPRO, 42 percent of U.S. shoppers will forgo their purchases if their preferred payment method is not available.
Enabling access to flexible payment options can significantly drive up the order value, Affirm’s 2019 research indicated. The provider found that merchants who enable the buy now, pay later offering have witnessed 85 percent higher average order values than other payment methods. Demand for such flexible payment options has ramped up even more since the start of the pandemic. Affirm reported that nearly 70 percent of the loans it has extended this year have been from repeat customers.
While BNPL service offerings were originally targeted at more budget-conscious and debt-averse generations, particularly Millennials and Gen-Z, BNPL is also taking off with old generations, including baby boomers, since COVID-19 has essentially pushed the demand for seamless and affordable digital eCommerce experiences.
“Partnering with Affirm not only allows us to reach customers who need payment flexibility and price transparency in the way they pay, but also increases our sales and average order value.”
With the partnership in place, Neiman Marcus joins a long list of more than 6,500 retailers that accept Affirm.
