4 benefits of deferred payments

If we could make a wish, that of many would be to buy without breaking the piggy bank immediately. The BNPL or ‘buy now, pay later’ (buy now, pay later), is a system that allows you to buy and defer payments at no additional cost. Although its use in Spain is recent, it is already a booming trend that does not stop gaining followers. PaynoPain, a Spanish technology company specializing in the development of online payment tools, explains the main benefits with which they captivate consumers.

Along with the boom in e-commerce after the start of the pandemic came BNPL solutions, a rapidly growing sector that has broken into traditional financial services by offering flexible payment options to users. In fact, the company BusinessWire estimates that these systems will reach a transaction volume of 680,000 million dollars worldwide by 2025, a 92% increase from 2019 figures.

Although this type of payment system has been slow to land in Europe, and even more so in Spain, the reception has been a complete success. PaynoPain summarizes the main benefits it brings to consumers:

  • Payment flexibility: consumers buy and, practically on the spot, decide whether to pay in fixed amounts, usually monthly and without interest.
  • Instant Financial Approval: the purchase approval process can be as little as 0.2 seconds.
  • Easy: it works in a very simple way since it basically consists of a deferral of payments made during electronic commerce.
  • Ideal for SMEs: This payment system also represents a good opportunity for retailers. Offering this financing option improves reputation, increases conversion rate, simplifies onboarding or speeds up authentication processes.

These new payment systems are really beneficial for consumers because they give them great autonomy over their economy and allow them to manage their financial resources, without depriving themselves of any need. In addition, you do not have to go through the usual procedures, or pay additional expenses to access financing. For this reason, offering this type of alternative is increasingly important for e-commerce, because it is becoming a decisive factor when buying. These types of formats are gaining many followers among the new generations who are no longer used to using more classic solutions such as credit cards or mortgages”, he maintains Jordi Nebot, CEO and co-founder of PaynoPain.

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Thanks to its recent collaboration agreement with David Spain, PaynoPain offers tools to automate collections, and incorporates installment payment solutions for the sales of its associates through financing solutions for ecommerce. These associated financing solutions will allow its partners, mainly hotel establishments, to increase their sales and even the average receipt of each sale and, therefore, their final billing.

This collaboration is key because it allows us to offer a wider range of solutions to continue being a benchmark in the tourism, ecommerce and retail sectors. We are excited to be able to offer through PaynoPain products that adapt to the needs of today’s society and that represent advantages for companies and their customers”holds Manuel Santos, commercial director of Cofidis Spain.

For consumers or clients, the integration of Cofidis products in PaynoPain’s associated e-commerce means being able to split the payment of their hotel reservations and vacation packages in a comfortable and simple way, being able to access a higher cost of the vacation package, such as a honeymoon, due to the fractionation of the amount. Paynopain has made it possible to have this new form of installment payment for consumers without the need for new integrations or investments in integrations with the electronic commerce platform.

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