As a merchant, instalment payments have quickly become a need-to-have, rather than a nice-to-have, with customers’ behaviour changing, customers’ financial situations changing and new regulations to follow. Despite serving a world of customers who find themselves somewhat out of pocket, merchants still need business to survive – and thrive.
As Forbes accurately puts it, “As a result of the economic consequences of the pandemic, more shoppers are likely to seek budget-friendly payment options, and more merchants are likely to pursue different avenues to increase sales.”
Instalment Payments Are A Must-Have If You’re Looking To GIve Consumers Flexibility
Instalment payment options give consumers the flexibility to pay for a purchase in multiple instalments – in some cases, without accruing interest. And, as any merchant will know, customers love flexibility when it comes to purchase payments.
Merchants that offer instalment payments will see their average order value increase by an estimated 15 percent, big-ticket items sold and much lower cart abandonment on large purchases.
Instalments Are A Must-Have If You’re Looking For Increased Conversions
For merchants, installment payments offer the prospect of increased conversions. According to Jotform, 76% of online consumers completed the purchasing process when the merchant offered a simple, quick and seamless payment plan or instalment payment.
Instalment Payments Are A Must-Have If You’re Seeking Higher Average Order Values And Customers Who Want To Overspend
For merchants in higher average order value categories such as travel, electronics and furniture, instalment payments are very well suited. As stated by CNBC, these instalments could lead to overspending, with two-thirds of online customers spending more money than they would have otherwise with this option to finance. While this is not good for consumers, it’s great for merchants.
Instalments Are A Must-Have If You’re Looking To Attract New Customers And Process Fewer Returns
By offering promotional interest-free instalments, merchants will certainly attract new customers. Oh, and fewer returns on merchandise sold. Why? According to Jotform, “When merchandise boomerangs back, it’s a hassle for any retailer. Adding a BNPL option to your e-commerce store can decrease returns.”
Instalment Payments Are A Must-Have If You’re Looking To Get Particular Items Sold
For merchants offering products of the pricier kind, installment payments make it easier for customers to say yes to items with price tags that would normally make them abandon their online shopping carts and avoid clicking that purchase button like the plague. This is according to research conducted by Bloomberg.
Furthermore, according to Mastercard, “For merchants, they bring increased sales by making seemingly out-of-reach purchases more attainable and boost loyalty.”
Instalments Are A Must-Have If You’re Looking To Attract Younger Generations Who’re Not Keen On Credit Cards
Instalment payments appeal to younger consumers who are wary of loans and credit cards. This is according to Bloomberg.
Why? Well because this generation feels more at ease with these instalment payments as there’s no interest. According to CNBC, interest-free payment instalments are attractive, the application process is easy and doesn’t rely as heavily on past credit history, it’s more straightforward and provides more clarity than your average credit card.
The Jury Is In: Instalment Payments Are A Must-Have. So start With Payflex!
It’s clear, merchants need to offer instalment payments to their online customers. It’s no longer a nice-to-have but a must-have. If you’re looking for the best payment gateway and instalment payments for eCommerce, consider Payflex. Not only does it offer your customers a revolutionary way to pay that can increase your profits, but it’s also safe and secure and easy to use.
Sign up for Payflex now!
Contact Payflex to start your instalment payments now. Start using Payflex as a payment gateway for your online store.