A new point of sale solution is giving New Zealand shoppers more flexible payment options when shopping online.
Launched today, retailers can now include PartPay as one of their payment methods at checkout, giving consumers freedom to purchase goods by paying equal instalments over a fixed term with no interest.
It's free for retailers to sign up to PartPay, with the technology integrating into the retailer's eCommerce platform.
From here, consumers shopping can select PartPay as their payment method and after a real-time credit check, the customer pays a 25% initial instalment, with a further three instalments each fortnight (or 12.5% on a weekly basis).
The retailer will ship the item as normal.
Partpay pays the retailer the full cost of the item minus an agreed fee the next day.
PartPay director John O'Sullivan says building customer expectation and experience around flexible payment will have a rolling effect on future sales.
“Giving people a solid platform that works for them and their lifestyle will help incentivise them to buy now and spread their payments as well as return as repeat customers, especially if they're able to make their paycheck last,” he says.
PartPay assumes full risk for consumer repayments and also picks up the cost of payment processing.
If the consumer doesn't default on their payments, the transaction remains interest-free without any hidden costs or fees.
“We can engage with the retailers and suppliers that everyday Kiwis know and love, lowering barriers to sale conversion and providing a solution for big, one-off payments,” says O' Sullivan.
International experience has shown that adopting a product like PartPay can result in significant increases in average order value and total overall sales by 80%.
PartPay hopes to engage with a local market that has the lowest cash in circulation worldwide, and the third highest prevalence of debit cards globally with 93.8% of adults actively owning and using a debit card.
This product can also work in stores, integrating directly with in-store inventory and PoS systems.
Data commissioned by PartPay has shown the addressable market for online and in stores, in the categories where this product works the best, to be well over NZ$11 billion.