Retrofitting past trends to fuel new innovations has influenced everything from music to marketing strategy. Global retailers are applying that same concept to add a modern twist to installment payments, giving consumers flexibility and convenience through a new way to pay.
Paying for merchandise in separate installments isn't new. It goes all the way back to the Great Depression and layaway plans. But retailers now are teaming up with fintechs to enhance digital engagement by allowing consumers to acquire merchandise now and pay for it later. Those installment programs, enable customers to send equal payments over a set period at no interest or additional cost to the buyer.
Although installment payments have found their home in retail, many nontraditional merchants – travel, health care, government and utilities – are adopting the programs to deliver flexibility and convenience. So whether consumers are paying for a car registration, medication or tickets to a sporting event, installment payments are making it easier to acquire goods and services.
Consumer Adoption Rising Globally
The flexibility of installment payments is generating favorable responses from consumers, especially among those who don't use credit cards or are on tight budgets. For many, the ability to pay over time is a welcome alternative to footing the full cost of that washer and dryer up front or accruing debt and paying double-digit interest later.
Enabling people to pay any way, anywhere is pivotal to providing the commerce experience that today's consumers expect.
The popularity and potential for installment payments are showing up in a variety of ways:
Retailers also can benefit from installment payment programs. To start, they assume no risk because they get paid in full at the time of purchase.
Other benefits could include:
Paying Any Way, Anywhere
Enabling people to pay any way, anywhere is pivotal to providing the commerce experience that today’s consumers expect. Retailers are delivering on that expectation by accepting installment payments online, in-store and through mobile apps.
By enabling new, flexible payment options that cater to individual consumers, businesses are creating the positive experiences that are critical to success.