Interest-free payments make 35 percent of consumers more likely to buy online
Thirty-five percent of consumers are more likely than not to make a purchase online if they can pay in interest-free monthly installments, according to a survey by payment solution Splitit.
Further, 47 percent of online shoppers surveyed said that a payment instrument offering zero interest is the most important consideration when choosing an installment plan, according to a press release.
- 83 percent of online shoppers claim that the fear of overspending or losing control of their cash flow would deter them from making an expensive online purchase. Among millennials, 25 percent were most concerned with the possibility of damaging credit scores when shopping online.
- Nearly 25 percent of online shoppers said the option of interest-free monthly installment payments would encourage them to increase the size of their purchase, compared with only 4 percent of shoppers who would be encouraged by traditional consumer financing options to increase their cart size.
- Not having to worry about late fees was the second most important factor for consumers selecting an installment plan; 17 percent said that late fees would deter them from selecting a payment option.
- 20 percent of millennials said that fees are the most important consideration when signing up for a payment product.
The survey was conducted in July conducted in July 2018 by Splitit and Google Consumer Surveys with 1,000 participants comprising a representative sample of U.S. adults 18 and older.