Payolution Expands into U.K. with ‘Buy Now, Pay Later’ Online Payment Option
Online shoppers in the U.K. looking to get their hands on the latest athletic apparel now, but who might not have the funds to purchase them until later, can pay in installments. Payolution, a Vienna-based provider of white-label e-commerce payment solutions and part of Paysafe Group, has expanded its “buy now, pay later” feature to the region through an agreement, announced Oct. 19, with sports retailer Odlo, which has brick-and-mortar stores throughout Europe in addition to its Website.
“Our solution, which is already widely used in continental markets such as Austria, Switzerland and Germany, was designed to help businesses both retain and attract new customers,” payolution CEO Bernhard Linemayr tells Paybefore. “A customer may feel that they don’t want to spend the full price on the good at the outset of their purchase, so our ‘buy now-pay later’ offering gives them the ability to stagger payments in a way that suits their budget and needs. This helps the consumer, and [enables] the merchant to sell more to existing customers and to reach new customers.”
During the online checkout process, shoppers are given payment choices, one of which is the “Instalment” option. The customer can decide the frequency and amount of their individual payment plan, and the payments are made directly to payolution through its bank partner, according to the company. Payolution checks whether transactions can be processed, gives an immediate response to merchants and removes the risk of default for them. Payolution offers financing terms to merchants that suit their business and customer needs, Linemayr says. The company doesn’t charge the consumer any fees for the “buy now, pay later service,” but the merchant could charge the customer a fee for the convenience of the payment option, he adds.
Payolution’s expansion into the U.K. follows its launch of services in the Netherlands last June. “Expanding into both new markets and new industry verticals is a core part of our strategic focus at Paysafe,” Linemayr says
In the U.S., companies such as PayPal Inc. and Affirm Inc., a San Francisco-based fintech business, offer similar installment services.