Would you like to know what split payment in eCommerce is? How this trend helps you minimize abandoned carts

Picture the following situation.

You’re about to buy those super cool shoes you fell in love with the second you saw them…

… but, unfortunately, they’re really expensive too. They cost $250.

Even though you already knew the price when you put them in the cart, the thought of just paying $250 right away hurts. It gets to the point that you consider closing the webpage and forgetting about those shoes.  

But right then, you notice the store gives you the alternative of paying for it in 5 interest-free installments.

In fact, paying $50 monthly is way less intimidating than just laying out $250 right off the bat. So, now youdecide to hit “Buy”, and you leave the store happily.

Well, that’s a split payment and, as you can see, it’s a strategy that could save you many abandoned carts.

Would you like to know more about it?

Then read this post carefully because here you’ll learn about:

• Split payment in eCommerce
• All the advantages it offers
• The different platforms you can use to implement it (and what you need to bear in mind to choose any of them) 

Are you ready?

Let’s get to it! 😉

👉 What is split payment in eCommerce?

In a previous post, we explained how payment trends have been evolving in time.

Split payment is one of those trends on the rise.

But, what is it about exactly?

Split payment allows the customer to split up the full amount of their order into different installments, instead of being charged the full amount at checkout.

Watch out; sometimes this payment method is mistaken with deferred payment.

And no, they’re not the same (even if they’re similar). That’s why it’s best to clarify the differences from the get go.

✅ Split payment vs. deferred payment

Deferred payment is also known as BNPL (buy now, pay later). Its name is already revealing: it allows the customer to put off payment.

This kind of payment is especially interesting during periods in which many expenses accumulate, such as Christmas. Or during specific moments such as the feared “end of the month”, when many people have not yet received their monthly salary payment. 

On the other hand, a split payment is made in installments and, in addition, only the first one is charged when buying the product.

You’ll understand this better with an example:

• Split payment: you buy a pair of shoes for $250 and pay in 5 installments of $50/each. You pay the first $50 at checkout.
• Deferred payment: you get the pair of shoes and pay the full amount a month from now. 

Watch out, the fact that they’re different doesn’t mean they can’t be combined (actually, that’s where the confusion comes from most of the time).

Following the previous example, your customer could buy now their pair of shoes and:

• Split up the payment in 5 installments.
• Put off the payment of the first installment and pay its value a month from now.

So which of those two options is best?

Well, good news: you won’t have to choose (and neither will your customers).

The thing is that most of the resources we have gathered for you here allow you to implement both payment methods in your eCommerce.

But before we get started, let’s see why split payment is so interesting.

👉 What benefits does split payment offer your eCommerce?

It’s very simple: split payment reduces the amount of abandoned carts and increases conversion.

Let’s see exactly how this happens.

✅ 1. It reduces friction at checkout

Neuromarketing —neuroscience applied to sales— has put forward “the pain of paying” as a concept.

It means that when we’re about to spend a large amount of money, the feeling we get is similar to that of physical pain (you must have experienced this sometime when the waiter brings over the check and places it on the table). 😉

By offering the customer a split payment, we reduce that “pain” and avoid friction at checkout.

✅ 2. It opens doors for those who couldn’t otherwise afford it

Sometimes, a customer doesn’t buy simply because they can’t afford it.

For as much as they’d like to (or even need to) buy that $1,000 laptop, paying that much money at once is just out of the question.

However, paying $100/monthly for 10 months is completely affordable.

Of course, it’s easier to pay $100 for a while than disbursing $1,000 right away.

✅ 3. It makes you stand out from your competitors

The capability of paying for a product in installments differentiates you from other stores that don’t offer the same flexibility.

Think about the example at the beginning of the post, the one with the shoes that cost $250.

So your store and one of your competitors have the same product, and you both offer pretty much the same conditions. But, in addition, you provide a split payment option. 

There will be users who will prefer this payment method and that will end up buying from your store because of it.

You could even use this feature (allowing customers to pay however it suits them) in your value proposition.

✅ 4. Increase your eCommerce’s average checkout price

Split payment is not only useful when you have expensive products in your catalogue.

It can also be interesting for someone who wants to place a very large order. 

For example, if you own a clothing outlet and your products cost about $10 and $30, you may not see the purpose of offering split payment.

But what happens if a customer puts many items in their cart and ends up with a $190 order?

With split payment, you really are opening doors for them to buy without missing any of those special products. 😉

✅ 5. It’s a way of enhancing customer loyalty

Had you considered this advantage?

If you think about it, it really makes a lot of sense; thanks to how easy you’ve made payment for them, the customer has ended up thinking the world of your eCommerce…

..So much that the next time they want to buy a similar product, they’ll come right back to your store hands down.

To summarize: good customer experience = customer loyalty. 

👉 5 platforms for implementing split payment

Now that you know the benefits of this system, the next question is: “How can I implement it in my eCommerce?”

There are specific companies that handle this kind of payment. 

These platforms finance the customer’s purchase, so you won’t have to worry about a single thing. As it’s the case in eCommerce, you’ll get the full payment instantly. And —should there be any non-payments— it’s the platform that will deal with it.

In order to help you find the best platform, we’ve reviewed some of the best-known ones.

✅ 1. Split-it

Its value proposition says it all: “When your customers pay small, they buy big”.

As you can see, it emphasizes one of the benefits of split payment we had just introduced; it helps you increase your average checkout price.

This platform doesn’t charge customers any interest, except in case of late payment.

If you’d like to get to know Splitit better, in this video you can clearly see how it works, from the moment the customer selects the product until payment.

✅ 2. Viabill

Another very popular split payment platform.

Here, unlike others that include deferred payment, the first payment is made at checkout. After that, they’ll have to make 4 other interest-free installments.

In Viabill’s case, the customer must sign up in order to benefit from split payment.

✅ 3. Sequra

Sequra offers 3 payment methods:

• Pay now.
• Split payment in 3 installments.
• Deferred payment.

In the case of split payment —what this post is about— Sequra includes a fixed cost per installment, unlike the 2 previous platforms. However, there’s no penalty for late payments.

It is currently available in Spain, France, Portugal and Italy, and it’s likely to keep on growing.

✅ 4. Clearpay

Another interest-free payment platform (although it does charge for non-payments).

Clearpay offers payments in 4 installments. The first one is made instantly and the next ones during the 6 subsequent weeks.

In this case, in order to use Clearpay, the user must download the app and make the purchase on it.

✅ 5. Klarna

Klarna is one of those platforms that also include deferred payment (30 days, in this case).

About split payment, offer your customers to pay in 3 monthly installments, paying the first one at checkout.

In order for the customer to use this system, they must sign up in Klarna and create a kind of “ghost card” that’s linked to their card. The purchase process is pretty simple, but we recommend that you watch this tutorial so there’s no room for doubt. 

👉 What you need to take into account when choosing this kind of platform

As you can see, there are many platforms that allow you to implement this payment method.

But now you may be thinking: are all of them alike? How do I know which is the best for my eCommerce?

Here are some aspects you must take into account, so there’s no room for doubt:

• It should pair up well with your CMS: even if the majority of platforms work in every CMS, it’s important to make sure (just make a few test payments once you’ve installed it to make sure everything is in order).
• It should work well in your country: as you’ve seen by now, not every platform operates in every country.
• It should be user-friendly: step in your customers’ shoes and analyze the purchase process they would have to go through. Is it too long? Is it easy to get? If you notice any potential obstacles for your customers… then you’re better off trying out another platform.

After all this, you should be ready to implement split payment in your business.

👉 As they say around… Divide and convert

Yes… we know the original saying is a little different, but you sure get what we mean. 😉

The thing is that split payment is a very powerful strategy for increasing your store’s conversion and for minimizing abandoned carts.

So are you going to take advantage of it or are you going to let your competitors overtake you?