Deferred payment through BNPL (Buy Now, Pay Later) allows consumers to pay for a product or service within 30-45 days without incurring additional costs. It gives the e-consumer the flexibility to decide when to pay for their order. This “buy now, pay later” solution enables planning and spreading out the costs associated with a purchase, while the financing method through card payments is quick and simple.
Installment payments are also a popular form of deferred payment among e-consumers. They allow for the total value of the shopping cart to be divided into smaller, recurring payments until the entire amount is paid off. The online installment purchase process is very fast, making this method increasingly popular among e-consumers.
According to research, over one-third of consumers utilize deferred payment options. In 2022, from January to August, as much as 33% of e-consumers used at least one form of deferred payment, including 23% opting for BNPL and 15% using installment payments. This highlights the importance of implementing this payment method for the growth of your business.
Deferred payments allow customers to make a purchase without immediately charging their bank account or credit card, which can encourage more purchases.
The average value of a cart financed with deferred payments can increase by 20% to as much as 60% compared to other payment methods available in the online store.
Individuals who prefer to pay in installments may be more inclined to make a purchase at a store that offers deferred payment options.
Meeting the expectations and needs of customers who seek flexible transaction methods in online stores is a must-have for any e-commerce shop that wants to thrive in an increasingly competitive market.
Deferred payments can encourage customers to add more products to their cart, especially during seasonal sales periods.
PayU Pay Later with Twisto. The type of payment in an online store affects profits and the completion of the shopping cart. Increase sales in e-commerce by utilizing deferred payment options.
PayU Pay Later with PayPo. Increase your e-commerce sales by utilizing deferred payment options.
PayU Pay Later with Klarna. A new flexible payment method for your online store.
Buy Now, Pay Later (BNPL), installment payments, and other alternative credit products are becoming an increasingly powerful part of the e-commerce landscape – particularly in emerging markets. From standard checkout options that give customers the ability to pay off their entire order within a fixed grace period with no costs, to installments spread over a longer duration, BNPL and other credit solutions are helping more people around the world to participate in the digital economy. E-commerce merchants, meanwhile, benefit from a larger customer base, increased online sales, and higher average order values compared with traditional payment methods.
Buy Now Pay Later options offer a more consumer-friendly way to access credit when paying for online products – and can serve as a source of alternative credit to customers not covered by traditional financial products. By extending more payment flexibility to online shoppers, BNPL expands the affordability and accessibility of e-commerce, helping more people to participate in the digital economy.
Merchants offering BNPL and other credit products in select PayU markets benefit from increased sales due to improved conversions as well as higher transaction values for certain types of payments. For installment payments, transaction values are up to 10 times higher than for other payment methods. With a variety of secure repayment options for different PayU credit offerings, customers feel more comfortable making bigger purchases online. Meanwhile, through the credit products offered by PayU and our partners, merchants are paid out at the time of purchase, eliminating any risk.
PayU offers BNPL and other credit solutions in selected markets. Each solution is managed locally and tailored to the needs of the local market. Keep scrolling for more information on PayU’s credit offering around the world, or click on the links to navigate directly to a specific region.
PayU Credit is the biggest online credit broker and distribution platform in Polish e-commerce, with nearly $1 billion in credit volumes processed and over 2,500 merchants using PayU Credit solutions. Through a single API, PayU’s Credit platform facilitates multiple consumer credit options by partnering with a network of leading consumer finance providers.
The credit portfolio can be customized according to merchant preference and includes various installment payment options as well as BNPL with a standard grace period 30 days or even extended up to 45 days (for registered users and dependent on the loan provider).
Merchants are paid out at the time of purchase, allowing businesses to reap the benefits of extending credit options to online consumers without shouldering the risk.
In addition to consumer credit solutions, PayU offers business financing through its partnership with YouLend. This platform provides fast and flexible business loans, repaid directly from the balance generated by PayU.
In Romania, PayU partners with local banks to offer BNPL as well as installment payment options to consumers. This means that PayU merchants in Romania can offer their customers BNPL with up to 30 days of grace period through PayU’s platform, as well as installment payments with up to 60 installments.
According to PayU’s 2021 report on the state of e-commerce in emerging markets, the average transaction value in Romania for key verticals like Beauty & Cosmetics was among the highest on our EMEA platform.
With these promising figures, offering BNPL and installment payments is a great way for merchants to boost GMV and reach more of the growing Romanian e-commerce marketplace.
PayU offers BNPL in the Czech Republic through an integration with local BNPL provider Twisto. PayU’s platform allows merchants to offer the Pay Later with Twisto option as a payment method at checkout. Consumers receive an instant credit decision and, if approved, the order can be paid with a standard grace period 30 days (or even extended up to 45 days for Twisto account users).
PayU pays out the merchant the next day and assumes responsibility for collecting payment from the customer.
Get in touch with our team to see how your business can enable BNPL and other consumer credit solutions for customers in Central and Eastern Europe.
PayU’s global platform enables merchants to accept BNPL and other popular local payment methods in any market around the world.
Visit our Global Payment Solutions homepage to learn more about the payment options available through PayU – from full payment methods coverage for any customer in the world, to industry-leading payment optimization and payment security features that help merchants to securely manage all of their global payments.
Representing a combined consumer population of nearly 60 million, Poland, Romania, and the Czech Republic are three of Europe’s most compelling growth markets for e-commerce. With offices in all three countries, PayU is deeply rooted in the Central and Eastern European region. This local expertise extends to our credit platform, which offers different credit options for each market.
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