Expand your online business at Christmas: How to take advantage of sales opportunities with “pay later” options

Christmas will soon be upon us – and the pre-Christmas period traditionally marks the start of the strongest sales period of the year for retailers. However, with inflation rates at record levels, Germans’ buying mood is likely to be subdued this year. If you as a retailer still want to boost your sales at the end of the year, it is important that you respond to the changing needs of your customers: consumers today expect financial flexibility when shopping online through “pay later” options.

If unplanned obstacles arise in the run-up to Christmas, they usually weigh heavier than usual: Imagine one of your customers wants to give their loved ones a gift and then, of all times, the washing machine or fridge breaks down. In situations like this, flexible payment options can save the day.

Given the many benefits that ‘pay later’ options offer, consumers now expect them when shopping online: according to a study, 66% of consumers use ‘pay later’ options because they can make purchases without having to save up money first. And 60% appreciate the fact that they can check the items they have ordered at their leisure before paying.¹

PayPal Checkout: A whole package full of payment methods

With PayPal Checkout, you can meet the expectations of your customers. In addition to all common national payment methods such as payment via PayPal, direct debit, credit or debit card and, depending on availability, purchase on account, the new complete solution for online business also includes many local payment methods that are popular abroad. In addition, there are the flexible payment options “Payment after 30 days” and “PayPal installment payment”.²

With a larger selection of payment options, your opportunities to optimize your conversion rate increase. This is particularly important this year, as the increased inflation rate is likely to dampen Germans’ shopping mood before Christmas. But with PayPal’s “Pay later” options, you have the opportunity to fulfill the desire of many of your customers for financial flexibility when shopping online and to take full advantage of the busiest time of the year despite reduced sales prospects.

And the best thing about it? With both “Payment after 30 days” and “PayPal installment payment”, your customers pay later, but you as the merchant receive your money immediately – at no extra cost to you.

Fulfill every wish list with "pay later" solutions

PayPal Checkout contains two “Pay later” options:

• With “Payment after 30 days”, your customers enjoy more payment flexibility. Payment is made conveniently by direct debit from the bank account – automatically after 30 days and at no additional cost. In addition to financial flexibility, your customers benefit from the security of PayPal buyer protection with “Pay after 30 days”, while customer data is protected by complex encryption.
• The “PayPal installment payment” offers your customers a relaxed financing option. Larger purchases can be conveniently financed in installments over three, six, twelve or 24 months. To increase the satisfaction of existing customers and attract new customers, you can also offer them optional 0% financing.

Visibility of "Pay later" options is key!

Pay later options are essential for optimizing your conversion rates. If consumers don’t find any of these options during their shopping experience, 30% of them will abandon their online purchases.⁴ Make sure that your customers are aware of the “PayPal installment payment” and “pay after 30 days” at the most important sales time of the year!

Did you know that PayPal Checkout makes it easy for you to draw attention to PayPal’s “Pay later” options at various points in your online store? Place the new “Pay later” button or dynamic banners that draw attention to the “PayPal installment payment” or “Pay after 30 days” directly on the product detail page, in the shopping cart and during the payment process. In this way, you can show that flexible payment options are available in your online store even before the purchase decision is made, thus increasing the likelihood of larger shopping baskets: Because using dynamic banners with PayPal Checkout can increase your “pay later” sales by up to three times.⁵

Full transparency and control for your customers

By clicking on your “Pay later” button or the dynamic banners, your customers will be taken directly to the available options in their PayPal account. There they will receive information on the “Pay later” details that match their respective purchase volume. Which option is visible depends on the height of the shopping cart value. “Pay after 30 days” is displayed for a shopping cart value of 1 to 1,000 euros, while “PayPal installment payment” is displayed from a shopping cart value of 99 to 5,000 euros. The latter also shows the monthly installments available for selection – this can make the purchase decision easier.

Also possible without a PayPal account: The new invoice purchase in PayPal Checkout

After pay by invoice as part of PayPal PLUS was discontinued on September 30, 2022, PayPal Checkout offers you a new invoice purchase solution. Many people in Germany in particular appreciate this payment method, as there is no need to enter sensitive payment data and the goods can be checked at their leisure first. After 30 days, your customers pay the invoice themselves by bank transfer, without the automatic direct debit as with “Pay after 30 days”. However, you as a merchant receive your money from PayPal immediately, without any bureaucratic effort. The highlight: your customers don’t even need a PayPal account for this payment method.

Ready to give presents: activate PayPal Checkout quickly and easily

With the new PayPal Checkout, you are well prepared for the Christmas business. You can quickly and easily integrate the new complete solution into JTL-Shop 5 via our JTL-Extension Store.

Free integration of PayPal Checkout into your JTL-Shop 5

A JTL service partner of your choice will integrate our “PayPal Checkout” plugin into your JTL-Shop 5 free of charge.

Choose a service partner now!

Promotion until 31.12.2022. The contingent of onboardings is limited – it pays to be quick!