“Examining the impact of BNPL Integration on Conversion Rate and Customer Retention in E-commerce”

The Development of e-commerce after covid-19 has totally transformed the consumer behaviour with the flexible delivery apps and seamless payment options as per the need of consumer. Buy now pay later is very popular payment method among the consumers which allows buyer to pay for their purchase in interest free instalments or deferred their payment for upcoming month Buy Now Pay Later plays a vital role in purchase decision making of consumer over e-commerce platforms. E-commerce platforms have aggressively adopt the BNPL to increase affordability for the consumer and stimulate the sales. Although, BNPL is widely implemented, its actual impact on conversion rate and customer retention needs exploration. As we know the usage of buy now pay later increases significantly. But the research on buy now pay later long term influence and e-commerce performance towards customer retention and conversion rate with the integration of buy now pay later on e-commerce is scarce. While some studies suggest that BNPL reduces cart abandonment and encourages higher spending, concerns regarding financial overextension and regulatory challenges. The aim of the study is to elaborate a line of thought about how e-commerce platforms' integration of buy now, pay later affects conversion rates and customer retention. Determine the main elements affecting online shoppers' adoption of BNPL. Analyse its impact on conversion rate and customer retention Find out the implications of BNPL on consumer long-term engagement. The paper is concept driven considering the combined wisdom of available literature and industry reports and consumer behaviour models. Based on conceptual framework that is built on the pillars of customer retention, conversion rates, financial behaviour and adoption of digital payment. This study has found that the conversion rate, particularly on high-value orders, and cart abandonment reduce as customers have greater financial flexibility. enhances customer retention, as BNPL customers are likelier to make subsequent purchases in comparison with non-BNPL customers. and brand loyalty since customers associate BNPL-enabled shops with it. The strategic importance of BNPL is to be understood by businesses wishing to streamline their growth and sustainability since it is still being able to drive the dynamics of e-commerce. Future research can be conducted on the same conceptual model by collecting data and surveys  for empirical manuscript to check the reliability of proposed model. There are many other methods which can use to investigate the effect of BNPL on customer retention and conversion rate including spending habits of individuals. These kind of studies will be give insight and contribute to academic knowledge and help business houses to plan their strategies accordingly.