Buy now, pay later thinks of hire purchase in the digital setting

Financial institutions have been offering payment in instalments to their customers for many years. However, FinTechs and payment providers were faster than the established institutions in transferring the basic scheme into the electronic age. But this should not be a reason to forego offering innovative payment methods – the experts at PPI will support you in this!

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Interim financing with a system

Basic scheme of the buy now, pay later process steps in e-commerce
Basic scheme of the buy now, pay later process steps in e-commerce
Process steps of buy now, pay later in e-commerce

Buying a needed good, having it directly available and paying off the price over a longer period of time – this is an ancient payment model. However, it usually involves extensive credit checks and formalities, which make the classic instalment credit as a payment method seem cumbersome and old-fashioned in the age of digitalisation. Particularly in e-commerce, advance payment or a payment-on-delivery transaction by credit card or similar means of payment is often required. Buy now, pay later (BNPL) combines the advantages of paying in instalments with the speed of the digital world.

The advantages are simplicity and transparency:

  • Low risk
  • Protection against payment defaults
  • No payment delay
  • Credit check within seconds
  • Selection of payment methods
  • Elimination of paperwork
  • Support for retailers in the allocation of payments
  • Facilitation of the dunning process
  • Enormously high acceptance rate of over 90 per cent directly in the checkout, even for new customers

High demand

Many e-commerce retailers have already integrated this financing option into their checkout process, and BNPL is now also increasingly offered in stationary retail. The payment method largely dispenses with lengthy creditworthiness enquiries or the filling out of extensive information forms. Young customer groups in particular take advantage of BNPL's flexibility, convenience and transparency. A classic example of use is the purchase of clothing, which can be tried on before payment.

Currently, BNPL providers are mainly FinTechs and payment providers. However, there are enough opportunities for the established institutions to make up for lost business and be successful in the BNPL segment.

Experienced implementation partner

With the PPI consulting team, you have an experienced partner at your side with whom you can master the challenges and implementation of buy now, pay later and set up your institution accordingly. Our specialists ensure quick and easy integration based on a flexible setup. We advise you along the hosted checkout to API integration or e-commerce extensions and make a seamless integration into your platform possible.

Our services summarised:

  • Strategy development
  • Vendor selection and tender support
  • Concepts for use cases including mock-up design
  • Creation of proofs of concept
  • Technical design of possible solutions