Installment form brings flexibility to consumers

Installment shows growing popularity in retail and beyond

Installment is akin to retooling past trends to fuel new innovations that have influenced everything from music to marketing strategy.

Global retailers are adopting the same concept to add a modern twist to installment payments, offering consumers flexibility and convenience through a new payment method.

Paying for goods in installments is not new. It goes back to the Great Depression and layoff plans. But retailers are now partnering with Fintechs to enhance digital interactions by allowing consumers to installment purchases. Those installment plans, such as through Movi, allow customers to send equal payments over a set period of time with no interest or additional costs to the buyer.

While installment payments have found their home in the retail sector, many non-traditional merchants - travel, healthcare, government and utilities - are adopting these schemes to bring flexibility and convenience. So whether consumers are paying to register a car, buy drugs or buy tickets to a sporting event, installments are making it easier to buy goods and services.

Consumer-accepted installment payments are on the rise globally

The flexibility of installment payments is creating a favorable response from consumers, especially those who do not use credit cards or are on a tight budget. For many people, the ability to pay over time is a welcome alternative to covering the full cost of that washer and dryer first, or compounding debt and paying double-digit interest later.

Allowing anyone to pay any way, anywhere is key to delivering the commerce experience today's consumers expect.

The popularity and potential of installment payments is manifesting itself in several ways:

• They have become the norm for smartphone purchases, with consumers often paying in installments over 12 or 24 months instead of around VND10 million upfront.
• Only 33% of adults between the ages of 18 and 29 have a credit card, leaving retailers to find alternative financing options for that market.
• The "buy now pay later" program has taken place in Australia, where 30% of consumers have joined the installment plan

Retailers can also benefit from installment plans. For starters, they are risk-free as they are paid in full at the time of purchase.

Other benefits may include:

• increase revenue
• higher online conversion rate
• increase orders
• more repeat business

Pay any way, anywhere

Installment payments that allow anyone to pay any way, anywhere is key to providing the commerce experience today's consumers expect. Retailers are meeting 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 critical to success.