{"id":72088,"date":"2022-09-18T15:08:22","date_gmt":"2022-09-18T13:08:22","guid":{"rendered":"https:\/\/www.key-one.it\/?p=72088"},"modified":"2022-09-18T19:17:56","modified_gmt":"2022-09-18T17:17:56","slug":"digital-payment-recurring-payments-and-installment-payments-for-e-commerce","status":"publish","type":"post","link":"https:\/\/www.key-one.it\/en\/digital-payment-recurring-payments-and-installment-payments-for-e-commerce\/","title":{"rendered":"Digital payment: recurring payments and installment payments for e-commerce"},"content":{"rendered":"

Today, the most popular digital payments<\/strong> are recurring payments<\/strong> and installment payments<\/strong>, a reality that is increasingly increasing the e-commerce<\/strong> business and beyond.<\/p>\n

The recurring payment<\/strong> is generally proposed for the sale of a subscription<\/strong> service to be renewed every certain amount of time, for example every week, every month, every six months or once a year.<\/p>\n

On the other hand, the payment by installments<\/strong> is a type of payment that in most cases concerns both high-cost<\/strong> and low-cost<\/strong> products<\/strong> or services.<\/strong><\/p>\n

If a customer decides to pay an amount in installments<\/strong>, he does so because this method of payment makes him safer due to the possibility of paying a small amount. With the payment in installments, the customer can take advantage of his purchases without stopping over time, as if he had paid in full for the service, instead carrying out his transactions gradually.<\/p>\n

To attract customers, an e-commerce could offer an installment payment plan<\/strong> with a subscription that can be interrupted when it sees fit. By adopting a “consumer oriented<\/strong>” approach, the customer avoids the dreaded automatic renewal<\/strong>, asking him at the appropriate time by e-mail<\/strong> to proceed with his payment.<\/p>\n

The subscription,<\/strong> which can be terminated at the customer’s decision, compliance with the security criteria<\/strong> of a site and payment gateways<\/strong>, make e-commerce a reliable and democratic service.<\/p>\n

Recurring payments<\/strong> and installment payments<\/strong> ensure business<\/strong> growth, reducing administrative costs<\/strong> and allowing store owners to know very important details about their customers’ behavior.<\/strong> How? By doing an RFM analysis<\/strong>: it is a technique that segments customers<\/strong> and focuses on the number of the best customers, examining how much each customer has purchased in the last period (recency),<\/strong> the stability with which the customer buys (frequency),<\/strong> and his spending media (monetary).<\/strong><\/p>\n

The recurring payment for an e-commerce: strategies and advantages for customers and platforms<\/h2>\n

Recurring payment<\/strong> is a solution that generates many benefits to e-commerce<\/strong> platforms that sell subscription services.<\/p>\n

For those who work with subscriptions, therefore, it would be useful to follow the so-called “subscription model<\/strong>“, a marketing strategy<\/strong> that ensures a constant flow of revenue<\/strong> and customer loyalty.<\/strong><\/p>\n

The subscription model<\/strong> is divided into two branches:<\/p>\n

    \n
  • the replenishment model<\/strong><\/span>: it is based on the concept of convenience and allows customers to order in advance<\/strong> the purchases they are interested in, without repeating the operation when they need it again.<\/li>\n
  • the discovery model<\/strong><\/span>: it is a strategy aimed at surprising the customer with new gifts<\/strong> every month, such as offering, together with the service already purchased, another additional service<\/strong> for a set period of time.<\/li>\n<\/ul>\n

    Among the advantages<\/strong> of the subscription model<\/strong> are: revenue flow forecasts, reduction of customer acquisition costs (it is often cheaper to meet the needs of an existing customer than to acquire new customers), and brand strengthening through different touchpoints (contact channels between company and customer).<\/p>\n

    The benefits of recurring payment for e-commerce<\/h3>\n

    The advantages<\/strong> for an e-commerce<\/strong> that offers recurring payments<\/strong> are many. Here is a list:<\/p>\n

      \n
    • Offer more scalable services<\/strong><\/li>\n
    • Avoid non-payment<\/strong> of customers<\/li>\n
    • Incentive customer loyalty<\/strong><\/li>\n
    • Simplify transactions<\/strong><\/li>\n
    • Estimate future revenue<\/strong><\/li>\n<\/ul>\n

      But which are the useful providers<\/strong> to offer users the possibility to choose the method of recurring payment<\/strong> on an e-commerce<\/strong>? Here are a couple of well-known names and their advantages:<\/strong><\/p>\n

        \n
      • MoonClerk:<\/strong> it is a provider with a simple and fast configuration<\/strong>, it does not require a commercial account or coding intelligence to be used. It works on both mobile and desktop.<\/li>\n
      • Braintree:<\/strong> Used by platforms such as Airbnb and Uber, this popular provider accepts numerous credit cards such as PayPal, Bitcoin, Android Play, Apple Play, Venmo, ACH, Union Pay. Braintree has very efficient reporting tools<\/strong>, has several multi-currency options<\/strong>, as well as many add-ons, but the feature that appeals to ecommerce managers is the fact that it doesn’t charge any fees<\/strong> for the first $ 1,000,000.<\/li>\n<\/ul>\n

        Finally, we remind you that the providers<\/strong> of recurring payments<\/strong> offer the possibility for users to retrieve the cart page<\/strong> that is often abandoned before making a transaction. This allows you not to repeat all the previous steps<\/strong> to complete the online purchase.<\/p>\n

        Installment payments for e-commerce: the Buy Now, Pay Later method<\/h2>\n

        Even the installment payments<\/strong> for e-commerce<\/strong> reserve many advantages<\/strong> both from an economic point of view and from a technical and managerial point of view.<\/p>\n

        The convenience, security, business<\/strong> of an online shop<\/strong> can reach levels of excellence, thanks to the payment in installments<\/strong>, which is able to make merchants intercept new potential customers<\/strong> and also to build loyalty<\/strong>\u00a0acquired\u00a0<\/strong>customers<\/strong>. Let’s see how.<\/p>\n

        Payment in installments<\/strong> is part of the Buy Now<\/strong>, Pay Later<\/strong> logic.<\/p>\n

        The deferral of online and offline payments<\/strong> is an innovative service offered by specialized companies that undertake to manage the transaction on behalf of merchants.<\/p>\n

        The Buy Now Pay Later<\/strong><\/em> is a very fast<\/strong> and above all free<\/strong> payment method for the buyer; it is also a very flexible method because the user can choose how many installments to defer<\/strong> his payment. In all this, there are no economic risks<\/strong> for the merchant, because thanks to the specialized companies that offer the service in installments, he is able to immediately collect<\/strong> the amount due to him for the sale made.<\/p>\n

        The global success of the installment payment method<\/strong> is demonstrated by the recent announcement by Apple,<\/strong> which from the second half of 2022, in conjunction with the launch of the new iOS16 operating system, will begin selling its products with the Buy Now, Pay Later<\/strong><\/em> formula. without interest or additional costs. The Apple Pay<\/strong> application will allow payments through the Mastercard network<\/strong>.<\/p>\n

        Payment in installments in practice: what an e-commerce must do to offer innovation<\/h3>\n

        Which installment payment systems to use<\/strong> with platforms like Magento2, Shopify, WooCommerce, Prestashop, Opencart, Salesforce?<\/p>\n

        Among the most well-known providers<\/strong> that provide payment systems in installments<\/strong> are Scalapay,<\/strong> a very popular Italian service in the sports and fashion sector, Clearpay<\/strong> which is the most popular Australian fintech, and again Klarna<\/strong> which records about 2 million transactions per day.<\/p>\n

        It is important to remember that the Buy Now, Pay Later<\/strong> method is not just an e-commerce<\/strong> strategy. In fact, one of the fundamental secrets for increasing brand awareness<\/strong> and brand reputation<\/strong> is to merge the digital experience<\/strong> with the physical experience<\/strong>, thus adopting a multi-channel<\/strong> approach.<\/p>\n

        If a brand has the opportunity to offer BNPL<\/strong> both online<\/strong> and in a physical store<\/strong>, it certainly has more opportunity to be chosen by customers, because it automatically offers them the opportunity to improve their shopping experience<\/strong>.<\/p>\n

        Who chooses payment in installments? Here is the target to keep an eye on<\/h2>\n

        Payment in installments<\/strong> via e-commerce<\/strong> is mainly chosen by generation Y and Z<\/strong>.<\/p>\n

        Young and very young people, although very attracted to online purchases and subscriptions,<\/strong> do not always have a substantial economic availability, and for this reason, in recent years they have shown themselves increasingly interested in products and services that can be purchased in small installments<\/strong>.<\/p>\n

        Generally, faced with a large amount to pay in a single solution, millennials<\/strong> and zoomers<\/strong> visit an e-commerce, reaching the cart page<\/strong> but then abandoning it. With products and services payable in installments<\/strong>, this is not the case. The behavior of potential customers is therefore directed towards the goal of the sale, making the new generations conclude the online purchase cycle<\/strong>.<\/p>\n

        It therefore follows that payment in installments<\/strong> favors an increase in the conversion rate<\/strong> and the value of the average shopping cart<\/strong> of an e-commerce.<\/strong><\/p>\n

        Finally, as already mentioned above, the shopping experience<\/strong> offered by payment in installments<\/strong> is a better experience if the customer has both an e-commerce and a physical store available, but also when, using their tokenized card<\/strong>, he does not need to enter his details every time he pays an amount. Thanks to the efficient features of the providers, the data useful for the payment<\/strong> are already stored on the e-commerce cart<\/strong> after the transaction of the first installment<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

        Today, the most popular digital payments are recurring payments and installment payments, a reality that […]<\/p>\n","protected":false},"author":11,"featured_media":71486,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[94,347,95,338],"tags":[402],"class_list":["post-72088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulting-and-strategy","category-digital-en","category-digital-marketing-en","category-ecommerce-en","tag-e-commerce-en"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\n","aioseo_head_json":{"title":"Digital Payment phenomenon: how two payment methods revolutionize the web |Key-One","description":"Everything you need to know about Digital Payment: from recurring payments to installment payments. Advice on marketing strategies to increase business.","canonical_url":"https:\/\/www.key-one.it\/en\/digital-payment-recurring-payments-and-installment-payments-for-e-commerce\/","robots":"max-image-preview:large","keywords":"","webmasterTools":{"miscellaneous":""},"schema":null,"og:locale":"en_US","og:site_name":"Key-One - Digital Agency a Milano | Key-One","og:type":"article","og:title":"Digital Payment phenomenon: how two payment methods revolutionize the web |Key-One","og:description":"Everything you need to know about Digital Payment: from recurring payments to installment payments. Advice on marketing strategies to increase business.","og:url":"https:\/\/www.key-one.it\/en\/digital-payment-recurring-payments-and-installment-payments-for-e-commerce\/","og:image":"https:\/\/www.key-one.it\/wp-content\/uploads\/2023\/05\/Logo_Color.svg","og:image:secure_url":"https:\/\/www.key-one.it\/wp-content\/uploads\/2023\/05\/Logo_Color.svg","article:published_time":"2022-09-18T13:08:22+00:00","article:modified_time":"2022-09-18T17:17:56+00:00","twitter:card":"summary","twitter:title":"Digital Payment phenomenon: how two payment methods revolutionize the web |Key-One","twitter:description":"Everything you need to know about Digital Payment: from recurring payments to installment payments. Advice on marketing strategies to increase business.","twitter:image":"https:\/\/www.key-one.it\/wp-content\/uploads\/2023\/05\/Logo_Color.svg"},"aioseo_meta_data":{"post_id":"72088","title":"Digital Payment phenomenon: how two payment methods revolutionize the web |#site_title","description":"Everything you need to know about Digital Payment: from recurring payments to installment payments. Advice on marketing strategies to increase business.","keywords":[],"keyphrases":{"focus":{"keyphrase":"","score":0,"analysis":{"keyphraseInTitle":{"score":0,"maxScore":9,"error":1}}},"additional":[]},"primary_term":null,"canonical_url":null,"og_title":null,"og_description":null,"og_object_type":"default","og_image_type":"default","og_image_url":null,"og_image_width":null,"og_image_height":null,"og_image_custom_url":null,"og_image_custom_fields":null,"og_video":"","og_custom_url":null,"og_article_section":null,"og_article_tags":[],"twitter_use_og":false,"twitter_card":"default","twitter_image_type":"default","twitter_image_url":null,"twitter_image_custom_url":null,"twitter_image_custom_fields":null,"twitter_title":null,"twitter_description":null,"schema":{"blockGraphs":[],"customGraphs":[],"default":{"data":{"Article":{"id":"aioseo-article-63628da550d6d","slug":"article","graphName":"Article","label":"Articolo","properties":{"type":"BlogPosting","name":"#post_title","headline":"#post_title","description":"#post_excerpt","image":"","keywords":"","author":{"name":"#author_name","url":"#author_url"},"dates":{"include":true,"datePublished":"","dateModified":""}}},"Course":[],"Dataset":[],"FAQPage":[],"Movie":[],"Person":[],"Product":[],"ProductReview":[],"Car":[],"Recipe":[],"Service":[],"SoftwareApplication":[],"WebPage":[]},"graphName":"Article","isEnabled":true},"graphs":[]},"schema_type":"default","schema_type_options":"{\"article\":{\"articleType\":\"BlogPosting\"},\"course\":{\"name\":\"\",\"description\":\"\",\"provider\":\"\"},\"faq\":{\"pages\":[]},\"product\":{\"reviews\":[]},\"recipe\":{\"ingredients\":[],\"instructions\":[],\"keywords\":[]},\"software\":{\"reviews\":[],\"operatingSystems\":[]},\"webPage\":{\"webPageType\":\"WebPage\"},\"blockGraphs\":[]}","pillar_content":false,"robots_default":true,"robots_noindex":false,"robots_noarchive":false,"robots_nosnippet":false,"robots_nofollow":false,"robots_noimageindex":false,"robots_noodp":false,"robots_notranslate":false,"robots_max_snippet":"-1","robots_max_videopreview":"-1","robots_max_imagepreview":"large","priority":null,"frequency":"default","local_seo":null,"breadcrumb_settings":null,"limit_modified_date":false,"ai":null,"created":"2022-09-18 13:08:22","updated":"2025-06-04 04:06:18","seo_analyzer_scan_date":null},"aioseo_breadcrumb":"

        \n\t\t\tHome<\/a>\n\t\t<\/span>»<\/span>\n\t\t\tConsulting and strategy<\/a>\n\t\t<\/span>»<\/span>\n\t\t\tDigital payment: recurring payments and installment payments for e-commerce\n\t\t<\/span><\/div>","aioseo_breadcrumb_json":[{"label":"Home","link":"https:\/\/www.key-one.it\/en\/"},{"label":"Consulting and strategy","link":"https:\/\/www.key-one.it\/en\/category\/consulting-and-strategy\/"},{"label":"Digital payment: recurring payments and installment payments for e-commerce","link":"https:\/\/www.key-one.it\/en\/digital-payment-recurring-payments-and-installment-payments-for-e-commerce\/"}],"_links":{"self":[{"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/posts\/72088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/comments?post=72088"}],"version-history":[{"count":0,"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/posts\/72088\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/media\/71486"}],"wp:attachment":[{"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/media?parent=72088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/categories?post=72088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.key-one.it\/en\/wp-json\/wp\/v2\/tags?post=72088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}