ATLANTA, Aug. 5, 2024
/PRNewswire/ -- New research from Splitit and PYMNTS
illustrates the rapid evolution underway in the payments landscape
and the implications for customer loyalty and retention. The
report, "Innovations and Developments of Card-Linked Installment
Plans," finds that most merchants have seen a significant increase
in the use of credit card-linked installments, up 82% in-store and
68% online.
"Our research clearly shows that merchants recognize the power
of credit card-linked installments to drive sales and build
customer loyalty," said Nandan Sheth, CEO of Splitit. "By
leveraging the existing credit consumers already have on their
cards, these installment plans offer unparalleled convenience and
transparency. In fact, 57 percent of merchants are increasingly
concerned that without this option, they risk losing customers to
competitors who do offer it."
More than one-third of merchants expect to innovate their
card-linked installment offers, with only 4% admitting that they
have no plans to expand or improve these offers. The share of
merchants surveyed who believe their shoppers would be likely to
switch to a competitor at checkout in order to pay in convenient
interest-free installments using their own credit card has
increased by 165% over the past year.
The survey also found:
- 50% of consumers would switch merchants in order to complete
their transaction with credit card-linked installments.
- Nearly three-quarters of retailers now prefer credit
card-linked installment plans over other Buy Now, Pay Later (BNPL)
options, an increase of nearly 17% from last year.
- 20% of acquirers also believe that their business clients were
very likely to switch acquirers in order to have the ability to
offer interest-free installment plans, up 133% since October 2023.
- Consumers are 60% more likely to choose credit card-linked
installments over BNPL plans for expenditures in excess of
$1,000.
- 52% of acquirers plan to innovate their credit card-linked
capabilities due to growing consumer demand for more flexible
payment options.
- 37% of merchants are offering select credit card-linked
installment options to individual customers during checkout, up
from 32% in December 2023.
Download the full report here.
Methodology
The Use of Card-linked Installment Plans in Online and In-Store
Sales, a PYMNTS Intelligence and Splitit collaboration, synthesizes
the findings from our report series detailing acquirer, consumer
and merchant preferences for installment plans. These analyses and
insights are drawn from an ongoing series of surveys comprising
4,993 consumers, 150 merchants and 100 acquirers conducted from
August 8, 2023, to March 28, 2024.
About Splitit
Splitit is a global payment solution provider that lets shoppers
use the credit they've earned by breaking up purchases into monthly
interest-free installments using their existing credit card.
Splitit enables merchants to improve conversion rates and increase
average order value by giving customers an easy and fast way to pay
for purchases over time without originating new credit. Splitit
serves many of Internet Retailer's top 500 merchants and is
accepted by more than 1,500 eCommerce merchants in over 30
countries and shoppers in over 100 countries.
Splitit Media Contact:
Berns Communications Group
Danielle Poggi
dpoggi@bcg-pr.com
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SOURCE Splitit USA, Inc.