New customers, more sales and higher customer satisfaction. Retailers report this when they offer the payment method instalment purchase. Companies for children’s equipment are also involved.

The research institute ibi research at the University of Regensburg interviewed 270 retailers in a recent study. The result: With 28 percent, more than a quarter of all companies have instalment payments in the payment mix. “Compared to our study from 2015, we see an increase here. Three years ago, the figure was 22 percent,” says Holger Seidenschwarz, head of the study.

Numerous other companies are planning to implement this payment method. Of those companies that do not yet offer installment purchases, 14 percent have concrete intentions to introduce it. The argument of increasing sales is particularly convincing. About three quarters of the surveyed retailers agree with the statement that higher shopping baskets can be realized by introducing an installment purchase solution.

Instalment payment is used at especially for purchases with high receipts confirms that payment by instalments is a popular payment method, especially for higher shopping baskets. Friederike Lütgenau, head of project management at “We always want to offer our customers the best possible shopping experience in all areas. In the Payment process this means that we offer our customers a large selection of payment methods. Depending upon the situation, product selection and receipt height our customers have different favourite payment types. In recent years, installment payments have increased their share of the payment method mix. In particular, purchases with high receipts are often financed by our customers through installment payments.”

The study by ibi research shows that the chosen provider for instalment purchases plays an important role for retailers. Of particular importance are the transparency of charges to the customer, the guaranteed assumption of risk and a media-break-free process with immediate confirmation at checkout.

With installment payments, shopping baskets for mytoys are up to four times as high

Many companies in the field of children’s equipment offer installment payments. They usually work together with external providers such as the Swedish payment service provider Klarna, Paypal or RatePay. Thomas Ficht, Head of Payment at myToys, on the importance of installment payments for the company: “The aim of myToys is to make families happy by offering them an optimal and uncomplicated shopping experience. For us, this also means making shopping at myToys possible for families whose income may not spontaneously permit larger and smaller purchases. Therefore, we offer installment payments starting from a shopping basket of EUR 15, but we also offer very large shopping baskets of several thousand euros, for example when our customers order a complete children’s room equipment. The success proves us right: The average shopping basket is up to four times higher for customers who choose installment payment than for other payment methods.”


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Link: The ibi research research institute at the University of Regensburg has investigated the significance of installment payments in its e-commerce guide.

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