The past few months have not been easy: the coronavirus pandemic, job losses and wage cuts, short-time working and massive restrictions in public life have meant an enormous cut in planning security for many – but also in financial opportunities.
Payment options such as installment payments can be helpful here. If you don’t have large financial reserves, you can easily spread the cost of larger purchases over several months.
PayPal installment payment - flexibility for the buyer without additional costs for the merchant
However, paying in installments is not only a hot topic among German shoppers in the current situation. Receiving the goods immediately but paying in several installments is a financing option that is more popular than ever: according to a study by ibi research, 65% of Germans can imagine making a purchase in installments. 41% even think that paying in installments should always be a financing option. Interestingly, the value of shopping baskets increases when payment in installments is used as an option, especially in online business.
What does this mean for you as a retailer? Sellers often shy away from this convenient payment option for their buyers because they fear higher costs and additional effort. With the simple option of PayPal installment payments, you as an online merchant now have the opportunity to offer your customers a payment option that allows them to make larger purchases and pay in installments1 – and as easily and quickly as you know it from PayPal.
Turn JTL-Shop visitors into buyers with banners
In order to reach as many buyers as possible who are interested in financing in installments, there is the option of using banners in your JTL-Shop to draw attention to PayPal installment payments. The banners can be easily activated with a click in the store back end. After activation, notifications appear in the shopping cart or on the product detail page and draw attention to the PayPal installment payment. In this way, curious visitors can quickly become potential buyers who appreciate the flexibility of your store.
How to activate the installment payment banner from PayPal in JTL-Shop
You can integrate the banner ads for PayPal installment payments into your JTL-Shop via your PayPal plugin. We have documented how this works in detail for you in our JTL-Guide:
The PayPal installment payment banners can be integrated on the following pages of your store:
Additional plus: The PayPal installment calculator
Another helpful tool for the buyer is the PayPal installment calculator, which can be accessed via the displayed banners. This allows the buyer to see the current conditions for the purchase of a product and base their purchase decision on them. The term of the loan is 12 months, and unscheduled repayment is possible at any time without a surcharge2. Both customers and merchants benefit from the simple PayPal solution: the credit check and approval of the application – assuming a positive credit rating – take place online and in real time.
Win-win situation: 0% financing for your buyers, no effort and no costs for you!
To enable as many of your customers as possible to benefit from PayPal installment payments, PayPal is offering all buyers 0% financing (subject to credit check) from April 20 to May 16, 2021, with no additional costs for you as a merchant. You receive the full amount immediately, while your customers pay in installments they can afford via their PayPal account. A win-win situation for everyone – because the risk is borne by PayPal as the lender. As a merchant, you also have the option of always offering your store’s customers PayPal installment payments with 0% financing. You can activate this option right here: Offer 0% financing through PayPal installment payment. As a merchant, you will then incur an installment payment fee of 5.75% per installment payment transaction. The fees for using PayPal payment services will be charged additionally.
Installment payment for all!
For many customers, buying in installments is an option that is generally considered. This year in particular, it is therefore especially important to offer payment solutions that offer customers convenience and flexibility. This way, you as a retailer can tap into an additional customer base and make your business even more profitable. Banners that point out convenient payment options and inform your customers about the possibility of paying in installments before they start shopping increase the value of the shopping cart. After all, why shouldn’t shoppers continue shopping with you if payment is already so easy?
1 Subject to credit check.
2 Subject to credit check. From an order value of €99 – €5,000 with an effective annual percentage rate of 9.99% and a fixed borrowing rate of 9.56%. The lender is PayPal (Europe) S.à r.l. et Cie, S.C.A., 22-24 Boulevard Royal, L-2449 Luxembourg.
Sources
1. Ibi study, October 2018, “Ratenkauf im deutschen Einzelhandel”
2. PayPal installment payment
