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.
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:
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:
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.