When you have an online store one of the most important points is to look for the solutions that offer the most facilities to your customers to make their purchases. Offering installment payments is one of the trends that is receiving the best response from consumers. In Spain, 1 in 4 consumers already prefer brands that have this type of solution (so he shared it Oney in his talk of InnoPayments’20).
Installment payments, as the word indicates, allow you to pay your purchase in different installments. Currently, there are already a large number of companies that offer different solutions within installment payments. The important thing is to find a model that suits the type of purchase that is made in your ecommerce.
Advantages of deferred payments
Some of the advantages that integrating installment payments can bring to an ecommerce are:
- Flexibility and adaptation. Each client has a need when paying, this payment model adapts to the needs of each one. For example, with time periods, each consumer chooses the one that suits him best.
- Ease of purchase. Many times buyers are faced with the fact that they want to buy a product, but at that moment they cannot pay the amount of money it is worth. With fractional payments you can buy it and pay the same amount of money, but in different installments.
- Increase the value of the middle basket. Consumers are encouraged to buy more products in one go, because they can split the payment fees.
How does the introduction of financing solutions affect ecommerce?
- At furniture and home sector They are seeing a 30% increase in the average cart and a 22% increase in the penetration rate.
- He fashion and retail sector we find a lower penetration rate, since it is only between 4% -8%. On the other hand, the increase of the average cart is greater, doubling or multiplying by 4.
- At electronics and household appliances sector We find that the penetration rate is between 15% -22%, while the average cart increase is between 5% -27%.
Aplazame offers instant financing solutions for businesses. The fintech was acquired by the WiZink Bank group in 2018.
The financing solutions that the company offers for eCommerce are two:
- Installment payment: Payment in installments is the Aplazame solution that allows you to distribute the payment of your purchases up to 36 months. It gives the consumer the option to choose the days on which they want the payment to be made. The eCommerce can put limitations of months, minimum purchase or product category.
- Payment in 15 days: Customers can pay for the purchase 15 days after the order is shipped. This allows them to decide if the purchase meets their expectations. This solution does not have any type of commission for the client
Also, Aplazame has APIs and modules that facilitate integration with the main eCommerce platforms: Magento, Prestashop, Woocommerce and Shopify.
“Pagantis, a Fintech company established in 2011, provides automated and frictionless consumer finance and payment services for eCommerce in Europe.“
The financing solution of Pagantis is Pay + afternoon, which allows you to design your payment plan with terms of up to 24 months. The steps that the consumer has to follow are very simple: choose the Pagantis option, how and when they want to pay, fill in the form (simple) and that’s it. The installments are automatically and monthly charged to the credit card.
The company signed an agreement with PayPal in May 2019, which resulted in Paga + Tarde with PayPal. With this union, the more than 100,000 merchants with which PayPal operates can benefit from the introduction of installment payments.
Instant credit Belongs to Banco Sabadell Group and has more than 19,000 online merchants customers. It is a digital financing solution and it is also a solution adapted to the physical and telephone sales channel.
Its particularity is that it is a single multi-financial modelIn other words, there are multiple finance companies integrated into the platform that allow a higher rate of credit approval and, ultimately, more sales.
Not only is it in Spain, another of the great advantages of Instant Credit is that it is multi-country, so you can find it in online stores anywhere.
Oney, a company specialized in innovative payment solutions: credit cards, personal loans, means of payment and insurance. Oney’s solution is also multi-country (because it is present in 11 countries) and multi-channel, because it can be found both in e-commerce and in physical stores.
Oney’s financing service is called 3x 4x Oney, It is a deferred payment solution with a credit or debit card, which does not require additional documentation or lengthy procedures and the response to your request is obtained in 4 minutes.
3x 4x Oney is integrated as a payment method in the merchant’s checkout process. The customer can choose a payment term between 3 and 12 months.
Oney’s solution can be integrated into platforms such as Prestashop, Magento and Woocommerce, with pre-installed modules.
eCreditNow is the financing company of Cetelem, experts in loans and financing with more than 30 years of experience. This option is also available for eCommerce with great advantages such as the possibility of choosing the financing option for up to 6 months and with no amount limit; Depending on the option, you can have interests or not. The consumer only has to follow three steps to finance his purchase.
It can be implemented in Prestashop, Magento or Woocommerce through modules.
Some of his best known clients are PcComponents and Machinists.
It is one of the companies that has the widest range of term payment solutions. Among the options they offer we find:
- Pay later. “Pay for your purchase once you have it in your hands.”This is the only service that does not have any type of extra cost.
- Divide into 3. Distribute the payment in 3 installments.
- Fractional pay. “Pay your purchase little by little, choose according to the months or the amount of the installment that suits you best.“
- Deferred payment. “With this solution you can buy what you need this month and pay for it the next.“
Their solutions are also multi-channel, since they are available for physical stores and telesales.
Among the brands that trust Sequra can be found Privalia or Emagister.
Caixabank Payments & Consumer
Caixabank Payments & Consumer has a deferred payment line called FindOnline. In order for the customer to be able to finance his purchase, he only has to:
- Choose “Financing” as the payment method.
- Select the installment that best suits your needs and confirm the purchase.
- You will receive an SMS and upload the documentation.
Some of their clients are Samsung, K-tuin or Tesla.
Klarna, is the Swedish fintech bank that is in full expansion internationally. Among the services they offer, they have solutions to finance such as:
- Pay in 3 installments. As an alternative to credits there is the option of paying in 3 installments. This type of payment has no interest.
- Pay after delivery. It offers buyers the option to pay 30 days after making the purchase, once the consumer has received their order. This solution is also uninteresting.
Payin7 is a Spanish financing company (one of the smallest on the list). For its installation within an ecommerce platform they take care of the documentation, the module and the plug-in.
ViaBill is another of the buy now and pay later solutions on the market. In their case, they offer payment in 4 installments without interest (they announce the incorporation of a new solution on their website). Everyone wins, companies receive the money instantly and consumers can make payments in different installments.
ViaBill allows a seamless integration with more than 30 platforms, among which are: Salesforce, Magento, Prestashop, Woocommerce or Shopify.
The company was founded in 2014 and their last major milestone was reached in 2019 when they managed to enter € 10M in a Series A investment.