As many as 42% of Internet users admit that they did not finish their purchase due to lack of sufficient funds on their accounts. For online merchants this means millions of abandoned baskets a year
The new way of online shopping financing, namely the PayU “Pay Later” service, is the answer to this problem. Buy today, pay later — even within 30 days — this is how PayU’s deferred payment works and supports e-commerce development in Poland.
The “Pay Later” service is currently the only payment method in its category available in Poland. The service allows customers of all online stores that cooperate with PayU to settle payments for purchases free of charge up to 30 days. In this way, purchasers are able to pay for products or services worth 100-2,000 PLN. A store receives payment immediately, and the payment is made through the PayU lending partner, Kreditech, which is in the top 10 of the highest rated fintech companies in the world.
At PayU, we have been creating innovative payment solutions dedicated to e-commerce for years, and now millions of Internet users use these solutions. Sixteen years ago we created the first pay-by-link transfer which made it possible for consumers to make online purchases in a faster and safer way; now deferred payments will support Poles in comfortable management of their purchase budgets without any additional costs — says Martyna Szczepaniak, Consumer Credit Director at PayU.
A revolution on the e-commerce market
A wide availability of the “Pay Later” service may boost the development of e-commerce in Poland. As experience on foreign markets shows, the option of deferring payments or buying on hire-purchase translates into an increase in an average order value (up to 58%) as well as an increase in purchase conversion (30%). At the same time, stores declare that the lack of purchase financing is a frequent reason for abandoning shopping baskets.
The potential for e-commerce development in Poland is still huge. Online sales account for only approximately 5% of all retail sales, which is three times less than, for example, in Great Britain. With the “Pay Later” service, consumers can manage their budget in a conscious and comfortable way, which also has tangible benefits for on-line stores as practically it means bigger shopping and fewer abandoned shopping baskets —says Martyna Szczepaniak.
New user experience
The deferred payment service is available in almost all on-line stores that cooperate with PayU. Before the service was made widely available, a few changes were incorporated, which greatly improved user experience related to the service. The main issue was to shorten the process of applying for deferred payment and changing the method of assessing creditworthiness. From now on, it is enough to provide some personal data, and the credit decision will be made based on the current transaction data of a PayU user and big data processed by Kreditech using artificial intelligence and machine learning. As a result of these facilities, more than 80% of people using the service for the first time are able to finalize the purchase within 3 minutes.
How the PayU “Pay Later” service works
The “Pay Later” service is a safe and comfortable way of payment, based on the “buy now, pay later” scheme. The solution is particularly convenient in the case of urgent or unexpected expenditure, which cannot be covered using the funds available on the account at any given time. The decision to defer the payment is made within several dozen seconds, so the whole process is very fast. Additionally, it is possible to extend the 30-day repayment period and break down the payment into 3- or 6-monthly instalments, incurring standard borrowing costs.
The PayU “Pay Later” service is the effect of the strategic cooperation between PayU and the technology group Kreditech, in which 110 million Euros were invested in May 2017. Poland is the first country where a new way of online shopping financing has been offered to on-line stores and consumers. PayU users have been testing the “Pay Later” service in selected stores since last September.
More information about the PayU “Pay Later” service HERE.
 Data: klarna.com
 Strategies for Optimizing On-line Commerce, UK merchant’s perspective, Ovum, 2017