To Enable ‘Pay After Delivery,’ Alipay Partners With Splitit
Alipay and Splitit have joined forces so that people can now pay for online purchases in installments.
The Chinese payment service said on January 15 that it was working with Splitit, a “buy now, pay later” (BNPL) company, to let Alipay customers who shop on AliExpress “pay after delivery.”
“Pay on delivery is Splitit’s new installment service that allows consumers to pay for goods after the delivery,” the companies said in a news release. “The agreement leverages Splitit’s Instalments-as-a-Service platform to create a custom-branded experience embedded in the AliExpress checkout flow.”
According to the firms, the service will first launch in Germany, France, and Spain, with intentions to expand it to more regions worldwide.
According to the two businesses, Checkout.com, a third firm that began collaborating with Splitit in November, made the offer feasible.
In May, Splitit debuted its platform for installments-as-a-service. The program automates the checkout process built into merchant payment flows using customer credit on payment cards. Customers can use the service if they have a balance on their credit cards. They don’t have to fill out an application or pay any fees or interest, and their credit records don’t change.
According to a recent study, the agreement comes as BNPL usage becomes more common.
During the 2022 Christmas season, consumers turned to buy now, pay later (BNPL) choices as inflation placed pressure on their finances. BNPL has also become a shop choice, even though it started in eCommerce.
Customers usually choose the businesses they want to patronize based on brand loyalty. A recent survey showed that BNPL buyers are more likely to look for the most significant discounts.
43% of BNPL customers said they would use the company’s applications to look for deals during the most recent holiday season, and 40 percent intended to utilize this strategy for most of their Christmas shopping.
Giving BNPL is an intelligent way to level the playing field since 31% of customers say their budgets are significantly more flexible with BNPL than they would be otherwise. Stores may be concerned about losing customers to rivals, but offering BNPL is an excellent approach to level the playing field.
Additionally, research has shown that 70% of customers spend more with BNPL than they would without it. Nearly half of the consumers say they choose retailers based on whether or not they are affiliated with their favorite BNPL providers.
