The customer clicks on the link and provides her name, phone number, date of birth, email address, and the last four digits of her Social Security number. The invitation message includes a link to apply for financing with a pay-over-time provider, such as Affirm. $800 is a little more than she wants to pay up front, so the pay-over-time option gets her attention - especially since it’s a 0% APR offer, meaning she won’t have interest charges if approved. 1.The customer discovers the offer to finance the purchase.Ī message near the TV’s price on the product display page invites her to consider monthly payments as a way to buy the TV. The next steps take us through her journey and show how it works to buy with monthly payments.
HOW TO BUY A MACBOOK WITH MONTHLY PAYMENTS TV
She finds a TV she likes at an online store called Acme Electronics, priced at $800. Let’s use the example of a customer looking for a new flat-screen television that’s big enough to fit on her family room wall. This form of financing has helped make expensive items more affordable for many budget-conscious consumers.
Shoppers pay for an item, like a sofa, via monthly installments over a set period, and afterward they own the item. shoppers have had a “layaway” option in some department stores that works in a similar way. The pay-over-time method is a modern, more convenient twist on an old practice. If you’re still on the fence, the information below will give you more clarity about the opportunity for your business. Your ecommerce businesses can capitalize on this buying preference by offering customers a pay-over-time platform. Younger consumers see these new payment options as necessary, said Gartner Senior Analyst Derek Stubbs in an interview with Vogue Business. With a provider like Affirm, for instance, shoppers see the entire cost of their purchase up front, with zero late fees or surprises. Instead they’ve adopted mobile-first payment methods like pay-over-time financing that better fit their tolerance for debt and desire for convenience. This demographic came of age during the Great Recession, watching revolving credit card debt hurt their families’ finances during that time.
Many millennials do not have a credit card. And in the UK, two-thirds of millennials buy with monthly payments when shopping online. In Brazil, 54% of all purchases made online in 2017 were paid in installments, according to Ebanx. In Australia it accounts for 8-10% of all online sales. While the practice of paying over time may still be new for some Americans, it’s been popular in other countries for years. What online store wouldn’t want a share of that pie? It has disrupted the traditional credit industry to become a $1.8 trillion ecommerce opportunity in the United States. One of the fastest growing trends in ecommerce today is paying over time in fixed monthly installments.
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