New shopping habits, new payment habits. Since the start of the pandemic, consumption through electronic commerce has increased dramatically. In 2020, Spanish ecommerce achieved a total of 51,600 million euros in turnover. The health crisis has led a large number of users to resort to online shopping to minimize contact, a trend that continues to this day. This context has provided a development opportunity for electronic retailers, who have seen their sales increase in a 36% on 2020, according to a study by eMarketer. But like everyone else, this sector has also been taken by surprise by the new reality we are experiencing and has had to adapt to the situation at a forced pace.
One of the decisive factors in the completion of the purchase process is the way to pay and the facilities that businesses can offer the user; a subject that electronic commerce still had to optimize at the beginning of the pandemic.
Payment solutions deferred and fractioned They have grown around the world, with recent launches, acquisitions, fundraising and improvements in this sector. In Europe, in particular, the development of these payment facilities has accelerated in recent 18 months. In this sense, tools such as FLOA Pay they attract more and more European traders, who see in them an opportunity to satisfy the needs of consumers.
In the case of this company, of French origin, with more than 20 years of experience and innovation, which has begun its internationalization with the deployment of the service in Spain, “It is about offering the best possible customer experience, proposing payment in several installments with the same ease as making a single payment”, has said Marc lanvin, Deputy General Director of FLOA.
The consumer can defer and divide his payment instantly with only two additional data: the location and date of birth. A simple way that allows a quick action of the client and an immediate response from FLOA, which avoids forms or registrations in external applications.
It is a beneficial tool for e-commerce because by paying for their purchase in various installments, users can increase your spending threshold. In fact, it is estimated that the average shopping basket can increase between a 25 and 50%, depending on the sector in which the purchase is made.
On the other hand, trade protection has always been the subject of debate when it comes to incorporating deferred payment, as retailers fear having to bear the risk of possible consumer default or delay. With FLOA this concern disappears, since the company take the risk and the merchant receives the funds the day after the sale.
Three key factors in choosing a deferred or installment payment tool
- Simplicity Financing the purchase in three or four installments should be easy. It is very common to lose a sale when the payment process is complicated. That’s why it’s essential that merchants fully integrate this step into the customer journey. Avoiding the creation of an account or redirection to an external payment platform is key to not losing a potential buyer. Ensuring a smooth checkout experience will increase engagement with the company and increase sales.
- Multichannel solutions. Omnichannel tools provide differential value because they adapt to all types of actors: merchants, ecommerce or marketplaces, small or large. In the case of FLOA Pay, all payment solutions are omnichannel and the customer journey is designed primarily for mobile phones, devices that account for 64% of sales during the 2020 shopping peak season, according to a recent study by Contentsquare.
- Cutting edge technology. Information systems must be robust to handle large volumes, without compromising service availability, and must not overload the process. In the case of FLOA, it has managed to manage up to 60,000 payments in an hour, which is a decisive figure in periods of high consumption such as Black Friday.
FLOA, in the race for international development
In the last five years, FLOA has grown more than one twenty% per year and has tripled its staff in France. With a production of almost 1.2 billion of euros in the first half of 2021, the company has managed to position itself as a reference ready to accelerate its presence throughout Europe. So much so that the bank’s goal is to be present in more than 10 countries by 2025, becoming a key player in the European market.
“FLOA has established itself in France as a key partner for e-commerce and fintechs due to its experience in payments and its customer-oriented approach. We are prepared to accelerate our international growth and offer our services to all European consumers “, has said Catherine Vidal, CEO of FLOA.
Currently, more than 3 million consumers use the tool, which has more than 8,000 partners and points of sale, among which are major e-commerce brands such as Cdiscount, Oscaro, organizations in the tourism sector such as Logitravel, Centerparcs or some of the main French Fintech companies, such as Lydia. A list of clients joined by Pierre et Vacances, Ekoi, Cruiseline and Fitness Boutique.
In the case of Spain, Oscaro, 1001 Tires, Yescapa and Turopark They are also partners of the company.