Myths and reality about payment split at retail

"My clients don’t ask for installment options."

One of the most common misconceptions is the assumption that if clients don't ask about flexible payment options, they don't need them. At the same time, "Inbank" data shows that payment splitting is highly demanded, especially in online stores. This indicates that such a service is needed by consumers. It’s possible that in physical stores, customers are unaware of the availability of this option because the information about such a payment method is not prominently displayed, or they are simply too shy to ask. If needed, "Inbank" provides its partners with various marketing materials to display in both physical stores and online platforms so that as many customers as possible learn about the service.

The “Buy now, pay later” service has gained significant popularity worldwide, and it is wrong to assume that it signals potential financial difficulties for the customer. On the contrary, it may indicate smart financial planning. More and more people are opting for payment solutions that allow them to split the purchase amount into parts or defer payment without overpaying. This gives them greater financial flexibility and allows for larger purchases without immediate financial strain. Our experience shows that such payment methods significantly increase sales volumes and customer satisfaction. Our data shows that implementing Inbank's "Buy now, pay later" payment method in your store can help boost sales by an average of 35%. This, however, depends heavily on the industry and customer segment, as the service is only available to individuals. We also have excellent examples where the solution has increased sales by 50% or more.

Installment payments – only for large purchases.

Another common myth is that installment payments are only needed for large purchases. In reality, the purchase doesn't have to be substantial. Customers are happy to use the option to split payments when buying electronics, clothing, or even everyday items. Our data shows that customers also split small amounts, as the “buy now, pay later” option allows them to do so without extra costs. As a result, consumers take the opportunity to fill their shopping cart with a variety of items, each of which isn’t expensive, and divide the entire cart amount into installments. This benefits the merchant, as instead of a single product, the customer has the opportunity to purchase several. Our data indicates that the average purchase amount using this payment method is €330, and the service is available starting from €75.

Relevant only to electronics retailers?

I often encounter the misconception that installment payments are only suitable for businesses selling electronics and household appliances. This notion is misleading. More and more partners from various industries appreciate the advantages of these payment methods. We have partners in beauty and health sectors, furniture and clothing retailers, as well as tourism service providers. For example, beauty salons offer installment payments, allowing customers access to services and products that would otherwise be immediately unavailable to them. In the health sector, including veterinary medicine, installment payments help people cover the costs of much-needed but sometimes financially inaccessible medical services. These payment options make businesses from any industry more competitive, which in turn promotes business growth and customer loyalty.

Providing payment diversity – technically challenging.

Many retailers are afraid of introducing new payment methods, thinking that it will be a complicated and time-consuming process. In fact, modern technologies allow for quick, easy, and simple integration. "Inbank" offers solutions that are easy to integrate into both online and physical stores, ensuring quick and efficient implementation without major difficulties. Our experts in these matters are very experienced and will provide consultations if necessary. For the customer, choosing installment payments, whether in-store or online, will not take much more time than paying upfront, as the decision-making process is automated.

Prejudices and fears often hinder business growth and development. We encourage retailers to be open to new opportunities and consider implementing new payment methods to provide customers with a convenient and flexible shopping experience. Contact "Inbank" to learn more about how our solutions can help you achieve higher sales results and meet customer needs!