Wirecard, a global innovation leader for digital financial technology, is launching a new instalment payment plan for online shops in Germany.
The new offering, which is available via the Wirecard digital financial commerce platform, benefits both merchants and consumers thanks to its B2B2C approach. Merchants are able to increase e-commerce sales by offering customers the option to pay in instalments while still receiving full settlement when the shopper completes the order. Consumers can more easily afford premium items thanks to flexible payment options and benefit from a seamless shopping experience. Wirecard acts as the acquirer and also processes all transactions. The solution will be expanded to other SEPA countries following the initial launch in Germany. The company expects transaction volumes of over €3 billion in the first years.
According to the recent survey Einkaufswelten from Teambank, more than every second German customer (58%) considers paying in instalments for online shopping. Since paying in small instalments makes it easier for consumers to buy premium products in particular, 65% of the online retailers who are offering payment in instalments have recorded an increase in the average shopping cart value, according to IBI research.
“At Wirecard, our focus is on constantly expanding our service offering to enhance the customer journey. According to recent statistics, merchants offering instalment payments in their online shops not only notice significant sales growth but also increased customer satisfaction. By giving consumers more flexibility, merchants improve the overall shopping experience which in turn leads to more loyalty,” said Kilian Thalhammer, VP Product Management Payment & Risk at Wirecard.
Merchants who leverage Wirecard’s new offering via its digital platform will benefit from increased sales and earnings thanks to larger shopping baskets and higher conversion rates. In addition, merchants will still receive full settlement upon completion.
Consumers can more easily afford premium items as they do not have to pay the full amount immediately. In addition, they can choose to pay for purchases in fixed monthly payments over periods of between three and 24 months – or up to 36 months for items over €1,000. They can also make unscheduled repayments at any time without incurring fees.