How many times have you gone to the mall to see if the computer you love so much is on sale, or have you visited the travel agency to see if your favorite destination has dropped in price? Buy our favorite products or travel to our most desired placesit is easier with the installment payment option, now also increasingly common in electronic commerce.
During the year 2020, the spending of Spaniards destined for purchases through electronic commerce has been especially striking, registering a volume of 51,600 million euros. The payment method preferred by users to pay for their purchases was the card, but nowadays it is increasingly common for companies to incorporate new payment methods, both in physical stores and online, highlighting among them the installment payment, allowing consumers pay the full cost of the product in several installments.
The installment purchase It is defined as the agreement between the buyer and the seller for the acquisition of a good or service in different installments during a certain period of time. In most cases, it requires the payment of additional interest on the amount, and this can be assumed by both the merchant and the buyer. Since the beginning of 2012 with the economic crisis and the cultural changes increased by the arrival of the pandemic in 2019, consumers have changed their consumption habits, so businesses have had to seek different solutions such as BNPL to maintain or increase your sales volume and retain your customers.
The Buy Now, Pay Later (buy now, pay later) is a payment formula that allows customers to buy in installments in a very simple way. According to an article published in El Economista, this method has been a revolution for the financial sector since it is estimated that by 2025 it will reach a volume of 680,000 million dollars worldwide. Thanks to this system, shops offer customers the possibility of pay little by little your purchases, choosing according to the months or the amount of the installment that suits them best, and thus be able to complete the payment whenever they want without penalties or extra costs.
Consumers, by having the option of paying for a good or service in different installments, can divide a large amount of money into several payments, so the initial investment will not be as large and it will be easier to acquire the product. This may also reduce the pain of paying or pain to pay large amounts of money in one go.
No additional interest
This new purchasing system does not involve complex procedures and one of its main advantages is that it does not generate additional interest for consumers. Likewise, it does not require an exhaustive financial analysis by banking entities, which has made it a very popular method, especially in the young sector.
Another advantage is that the process of purchase approval can be as short as 0.2 secondstime interval in which the possible risks of the transaction are verified, so that with this method fast and safe purchases are guaranteed.
What seller You can also benefit from installment payment. Dividing the amount to pay several times ensures that customers are not so reluctant to purchase and may lead to an increase in their purchasing power, which will mean that the benefit of your company is greater.
This system guarantees users flexibility when making payments, a fact with which you manage to improve their shopping experiencetheir trust in the brand and their loyalty, which will lead to an increase in the probability that they will make purchases in the future.
Definitely, customers are increasingly demanding and they demand quality products with good financing plans, both in physical stores and online. A good way to present them is by offering the possibility of installment payments. At Sipay we can help you achieve this, and we also offer you a wide variety of fast and secure payment methods so that you can adapt to the needs of your consumers in all environments.