BillEase, a flexible and transparent alternative to credit cards and e-wallets, has expanded its interest-free buy now, pay later (BNPL) service, which now includes a short-term installment offering for customers in the Philippines.

The BNPL provider is aiming to help more online retailers drive conversion, revenue, and customer loyalty without taking on any risk amid the increase in market demand for zero-interest payment plans.

“The ​shopping landscape continues to change at a rapid pace and ​BillEase has evolved its proven and cost-effective​ shopping optimization tool at​ checkout to meet the needs of ​​​online ​retailers and consumers alike,” said Georg Steiger, co-founder and CEO of First Digital Finance Corporation (FDFC) which operates the BNPL app.

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With the new offering, online retailers can now allow their customers to split payment for purchases between P1,000 and P25,000 or more with the first payment (25%) due at the time of transaction and the rest (75%) in three bi-weekly installments. For example, a P10,000 purchase would only cost P2,500 every two weeks with the first one-fourth paid upfront, no interest while merchants get paid in full upfront.

Short-term payment

For smaller purchases, customers can also select to pay later on their next payday or 10-20 days for any purchase below P1,000 at zero interest. ​​The addition of ​short-term payment plans ​allows a ​merchant to increase customer loyalty​ as well as boost customer purchasing power, resulting in increased transaction sizes and higher-order values. ​

“We see a major consumer trend in the Philippines today: a shift from cash and card transactions to digital native products like e-wallets. However, e-wallets require customers to pre-fund their balance,” Steiger said. “At BillEase, we offer instant credit that is hassle-free for consumers to use online and then pay over time.”

The buy now, pay later service is completely card-free and does not require customers to sign up for a credit or a debit card. Customers only need to provide one valid ID when signing up and get instant approval to complete their purchase. Customers are shown the actual amounts including the exact date of installments and a disclosure statement at the checkout before completing their payment.

Long-term payment

“For merchants, finding new ways to grow revenue without taking on any risk is really important,” Steiger said. “We’re offering the exact solution that they’re looking for to acquire new customers and to encourage loyalty as customers are more likely to purchase and repeat purchase at merchants that offer interest-free installments at checkout.”

BillEase is also offering longer payment plans which allow consumers to pay monthly for large purchases and stretch their funds to increase buying power. Customers can select longer terms at merchant checkout and pay only one-third upfront and the rest over three, six, nine, or 12 months. Depending on the merchant, longer-term plans are either interest-free or come with an affordable interest rate. For example, a P50,000 purchase would only cost P5,583 over six months or only P2,792 bi-weekly with only one third upfront payment, no interest.

The zero-percent installment option for longer terms will be available for select purchases or all products or services as decided by a merchant or the brand.