Payment in installments: how does it work?

According to an OpinionWay survey for Floa Bank, 31% of French people used payment in several instalments in 2021, compared to 25% in 2020. This method of payment is therefore increasingly used by consumers, as it is an effective solution for balancing their budget. Do you also want to pay for your purchases in installments or offer this service to your customers?

Here’s everything you need to know about this solution and how it works.

Payment in installments : an excellent sales lever

Payment in installments is a very advantageous payment method that facilitates the acquisition of high-cost products (high-tech, household appliances, furniture, etc.). It allows the buyer to spread the financial effort over a long period.

According to the OpinionWay – FLOA barometer of 2021, the possibility of being able to pay in installments has become a determining purchase criterion. Indeed, 76% of users say they are ready to change brand to benefit from it.

As a seller, it is therefore in your best interest to offer this method of payment to your customers. To do this, simply go to the site to discover the different solutions offered by one of the French leaders in split payments.

How split payment works: accessibility and formulas offered

The operating principle of payment in installments is simple. As its name suggests, it allows buyers to pay for a purchase in several instalments, with a maximum period of 3 months. But who can offer this solution and what formulas are available?

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Who can offer payment in installments?

This solution is essentially offered by online sales sites. However, it is accessible to all types of companies, regardless of the sector of activity, the number of customers or the turnover generated. THE physical shops can therefore also offer it to their customers.

Note also that there are also remote payment solutions for call centers.

What formulas are offered?

There are several split payment formulas. The choice of the most suitable one is determined by the price of the product offered for sale.. Nearly 65% ​​of French people use payment in installments for expenses of less than €500 (OpinionWay Barometer – FLOA, 2021). This is the main reason why plans with the lowest numbers of payments are often offered.

These include payment in:

  • 3 times ;
  • 4 times ;
  • 10 times.

These are generally suggested for multi-product baskets priced between $50 and $6,000. Payments in 12 installments or more are, for their part, generally more suitable for purchases of up to €75,000.

How to benefit from the service?

Payments to be made are often integrated with payment methods commonly used by consumers. When, as a buyer, you choose to pay in installments, you must first specify the payment method of your choice.

No proof is required for payments in 3 and 4 instalments. On the other hand, for the payment in 10 installments, it is necessary to provide at least one piece of identification. For payments of 12 times and more, a bank account statement and a tax notice (specific to purchases over €3,000) are normally requested in addition to the identity document.

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Once the formula has been chosen, just enter your credit card number. For payment formulas in 12 or more instalments, SEPA direct debits are made. It is then necessary to sign a SEPA direct debit mandate authorizing the company to debit your account.

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