Several third or 35% of shoppers said they are more likely to create a purchase if a company offers monthly installment payments. This based on a survey carried out by Splitit, a payment solution gives retailers the capacity to give a payment policy for purchases.
When shoppers are considering an installment plan, near half or 47% revealed zero interest is the most crucial consideration. So it’s insufficient to just give you a payment plan, you also need to provide suprisingly low or zero interest otherwise you’ll lose one in two customers.
For small retailers, online or brick and mortar, providing a regular installment plan is one of the best ways to increase average order value (AOV). The Splitit platform has been made to simplify the installment payment process so business owners don’t need certainly to bother about managing the purchases.
The CEO and Co-Founder of Splitit, Gil Don, explained the benefits of providing installment plans in the press release.
Don said, “An interest-free, monthly installment plan offers consumers the most effective option in alleviating their financial woes and permitting them to shop without burdensome restraints cassh24sg.com/monthly-installment-loan. Offering a successful payment solution is really a win-win for both consumers, who can afford more expensive purchases, and for merchants, who are able to increase revenue and decrease cart abandonment rates.”
The Splitit survey was carried out in collaboration with Google Consumer Surveys in July 2018. More than 1,000 respondents ages 18 to 65+ in the US took part in the survey.
Monthly Installments: Survey Results
Along with zero interest, no late fees was also a significant factor for consumers. Seventeen percent of these said these fees are a deterrent when they are along the way of selecting a payment option.
For 20% of millennials, the problems of late fees carried more weight. They said it was the most crucial consideration if they signed up for a payment solution.
When coming up with purchases online, 83% said they are afraid of losing control of these cash flow or overspending. It has translated into shoppers making fewer expensive purchases online.
However, 25% of online shoppers said the possibility of an interest-free monthly installment payment plan would encourage them to choose the high-ticket items.
While on the subject of purchases, millennials tend to be more concerned with the chance of damaging their credit score. This is true for 25% of the millennial respondents.
The Splitit Solution
Splitit has established a workaround for businesses so they can provide monthly payment plans without interest rates and late fees. And best of all customers don’t have to register or apply like traditional installment payment plans or services.
The company uses the Visa and MasterCard bank cards as well as the debit cards your web visitors already use and offers monthly payment plans.
Splitit authorizes the total number of the purchase on the shopper’s existing credit and debit card and holds their credit line for the whole amount.
The service happens to be being utilized in 25 countries around the globe by 800 Internet and traditional merchants.