Are payment installments an inevitable part of retail?
No interest payment installments for retail are starting to gain traction.
A recent predicted audience outperformed an existing customer segment by an astonishing
June 13, 2019
6 min read
Why some retailers are now offering an installment payment option at the point of sale for both e-commerce and in-store transactions.
There have been notable results which is why every retail should start looking at offering such services.
Companies like PayBright, Afterpay and Splitit have been seeing exciting growth over the last couple years. This growth confirms that millennials and Generation Z demand multiple payment options when shopping.
Retailers who have partnered with payment installment companies have not only seen a significant growth in customer traffic but also a 10-25% increase in checkout conversion rates. This also enables consumers to make larger dollar amount purchases and retailers have seen a much higher order value for almost 100% of the customers who choose a payment installment method over the traditional credit card.
Instead of being viewed as a loan – installment payments could alternately be viewed as a budgeting tool.
Installment payments not only benefit the consumer but also the retailer. For example, if a consumer selects PayBright at the point of sale, the next business day Paybright will pay the retailer the full amount, eliminated the credit risk for the retailer altogether.
The consumer will then pay PayBright in affordable payments over time with interest rates as low as 0%.
It makes sense that payment installment options would correlate with higher order values and this is only the beginning. Payment installments for retail with no interest is just now starting to gain.