Since the health crisis, split payment has gradually become part of our habits, whether we are consumers or merchants. A practice that appeals to the whole world, to France as well as to our European neighbors. Decryption.
An emerging market in Europe
Its use mainly concerns online commerce: according to Younited, a European player in instant credit who conducted a pan-European study focused on the challenges of split payment, of all French who have used split payment, 61 % did it. for online purchases. This is less than the Italians and the Spanish, who are concerned respectively with 54% and 44%, but much less than the Germans, who themselves are 78% who use it through e- commerce. As you can already understand, split payment does not only appeal to the French: its success can be seen everywhere in Europe, mainly (65%) in purchases below €800. In 63% of cases, reimbursement is spread over 2 to 4 monthly installments.
However, in our European neighbors, payments are usually longer: 54% of German and Italian split payment users spread their payment over more than 7 monthly payments. In Spain and Portugal, the trend is 49% and 40%. This is more than the proportion reached in France, which is almost 22%. Similarly, the share of purchases over €800 is higher abroad, with 35% of French users compared to 40% of Spanish and Portuguese users, 54% of Italians, and 58% of Germans. Figures justified by the many interests of a longer reimbursement period for the French consumer. In fact, if this is not necessarily the case in the countries bordering France, in France, the minimum monthly payment has a limited impact on the budget. An advantage combined with the possibility to align the maturity of the credit with the cycle of product use, which also appeals to many households.
New consumer expectations
If French consumers have acquired specific habits in recent years regarding split payment, their expectations on this subject are also well defined. But above all, we must remember that our market is changing: purchases of more than €1,000 should represent 28% of split payments in France in the next 6 months compared to only 13% today, always according to the same study. An increase that involves satisfying new expectations, therefore, can be easily identified. Among them, we find the desire to access a wide range of solutions that cover both higher costs and more monthly payments. But, according to the numbers, this criterion is not placed in the first position. Confidence in a brand or website that offers a split payment solution has driven 53% of consumers to use it. Note that this factor remains No. 1 decision criteria for 42% of Italians and 39% of Spaniards questioned, but less decisive for 27% of Portuguese and 22% of Germans.
However, the popularity of a brand does not necessarily inspire confidence among French consumers. In fact, only 26% of split payment users choose this payment solution because they know the mark that suggests it. And this number will surely decrease in the near future, due to the large number of fintechs starting in this niche. The ability of a split payment brand to offer an experience that is more secure because it is regulated, more homogeneous because it is international, more unique because it is innovative, will be important.
Last, last but not least, is about the effectiveness of the customer journey. A standard that companies will soon follow without delay: in France, 77% of split payment consumers say that the entire process takes less than 3 minutes. However, this immediacy is not suitable for payments spread over a long period of time. At issue is the number of steps required for bank and identity checks. In these cases, the customer experience suffers a negative change. Therefore, the main effort to be made for brands in the future is to offer a smooth customer journey and a clear response, necessarily accompanied by the simplest possible verification of the solvency of subscribers.
To find out more, download the white paper: Is split payment made for your e-commerce?