How to Set Up Installment Payment Software
Installment payment software and other eCommerce payment options are crucial components of a user-friendly checkout process. By offering customers more ways to pay beyond Apple and Google Pay, you will see an increase in your bottom line as well as in overall customer satisfaction.
What is Installment Payment Software?
Installment payment software is the eCommerce world’s version of Buy Now, Pay Later – meaning that it allows customers of eCommerce businesses to pay for their purchases over time via installment payments. Essentially, it is simply another long-term customer financing and credit option.
Installment payment software is also easy to use from both a customer and retailer point of view. BigCommerce outlines the process extremely well: as the customer, you’d simply select the installment payment option when you checkout, go through a series of pre-approval questions and obtain a positive verdict from the lender upon which the transaction would be completed. As the retailer, you’d receive your payment in full within a few days of the transaction, with no extra work required on your part.
Some of the most popular installment payment softwares at the moment include:
Why is Installment Payment Software Important for my eCommerce Business?
Every eCommerce website should have some kind of installment payment option offered to customers during checkout, as they offer numerous benefits for both the customer and the retailer. A few benefits are as follows:
Better Conversion Rates
Given the convenience and flexibility of installment payment options, customers will be much more likely to convert and buy from your business. Concerns regarding cost immediately decrease, as will cart abandonment rates.
Increase Order Totals and Size
Similar to increasing conversion rates, installment payment options also have been shown to largely increase order totals and size. With installment payments, customers are more comfortable spending more money over time and also buying more items.
Receive Full Payment (Almost) Immediately
Despite the fact that installment payment options are paid by the customer over time, retailers will still get full payment of the customer’s purchase almost immediately after the transaction is complete. This is because the lender pays the retailer on behalf of the customer, and therefore all future payments from the customer will go to the lender instead of the retailer.
Grow New Customer Segments
Installment payment options have also been shown to attract new customer segments to eCommerce businesses, especially budget shoppers. Products that were once unattainable quickly become accessible with more credit and payment options.
Establish Trust with Your Customers
Having installment payment options also allows eCommerce businesses to both establish and build trust with their customers. By offering the option to pay later, you are showing customers that their business is appreciated and that you trust them to pay you back. This in turn will increase brand loyalty, consumer satisfaction, and customer lifetime value.
How to Set Up Installment Payment Software on an eCommerce Website
The process of integrating and configuring an installment payment software on your website will differ depending on the type of eCommerce platform you have– for example, Shopify, WooCommerce, or Magento. Regardless, each eCommerce business will likely go through a similar selection and integration process.
- Choose an Installment Payment Software: Research and identify options that make sense for your business. Keep in mind that some installment payment options may require retailers to pay fees in return for their services, and that conditions for customers will vary between options. Make sure that the option you choose is also compatible with your website’s payment gateway.
- Confirm that Your Business Meets the Requirements: Double check to make sure that your business meets the requirements of your selected installment payment software. For example, if you choose Affirm, you must make sure that your currency and country on your website are selected to USD and the United States, and that you do not fall into any of their prohibited business categories.
- Integrate Your Installment Payment Software into Your eCommerce Platform: Once you have decided on an installment payment software and have confirmed that you meet its requirements, it’s time to integrate it on your website. Oftentimes, this will be done in “Settings” on the backend of your website, and you will need the API credentials from your installment payment software provider account. Your provider may also have a process readily available to help you integrate your new software.
- Contact Bytes.co for Help
We understand that integrating and configuring new software on a website can be extremely tricky, which is why we’re here to help the process go smoothly. Our expert team of developers can help you determine which installment payment software is right for your eCommerce business, as well as integrate and configure it on your eCommerce website for you. Contact us to learn more!
