Installment payment solutions provide an ability to offer the option to purchase an item over time through a set number of regular payments. The businesses facilitate their customers by providing the ability to purchase the desired product or service on an installment basis for a predefined span of time. The businesses can develop the software by themselves or utilize a SaaS tool to provide installment payment capabilities. Moreover, the service will pay the full price of the item upfront to the business and then remit the installment payments from the customer. The flexibility associated with the installment payments enables businesses to attract potential and new customers. Additionally, the businesses can embed these solutions into their online store or integrate them with their invoicing software to offer flexible payment options. Furthermore, some of the essential tasks carried out by these installment payment solutions includes providing option to pay for an item in installments, apply appropriate interest and fees if the installments are late or unpaid, manage the amount and timeframe of the installments, send notifications to both customers and businesses, and Integrate with an e-commerce platform or invoicing software.

Market Dynamics

The benefits associated with the installment payment solutions for payer and payees both are primarily driving the market growth. The increasing promotional activities and marketing of installment payment solutions by the businesses in order to expand their customer base and sales in the market are accelerating the market growth. The increasing disposable income and spending power of people in developing economies are further bolstering the market value. The high-value items become quick and easier with the help of installment payment solutions. Additionally, the rising adoption of automated and secure installment payment plans for the online business is further supporting the growth. Furthermore, the increasing trend of spending high for maintaining social status is inclining people to buy things out of the budget with the help of easy installment payment methods thereby creating potential for the market.

On the other hand, the religious taboos associated installment payment schemes are likely to hinder the growth to an extent over the forecast period from 2020 to 2027.

Global Installment Payment Solution Market Revenue (US$ Mn)

Segment Instance

The global instalment payment solution market is segmented on the basis of type, application, and geography. Based on type, market is divided into e-commerce merchants and brick & mortar merchants. The global installment payment solutions have applications across small and medium enterprises (SMEs) and large enterprises.

Large Enterprises accounted for the maximum revenue share in the global market

In 2019, the large enterprises' segment is having a potential share (%) in the instalment payment solution market. The early adoption of advanced technology infrastructure in large enterprises as well as the presence of large employee and customer base is supporting the segmental market value. Additionally, the small and medium enterprises (SMEs) segment is likely to exhibit the fastest growth over the forecast period from 2020 to 2027. The emergence of technology solutions in the SMEs of developing economies is expected to support growth.

Key Market Players

The players profiled in the report include Afterpay Touch Group (Australia), AsiaPay (India), Elavon (US), Flo2Cash (New Zealand), Global Payments Direct (US), PayClip (Mexico), Payfort International (Dubai), Paysafe Holdings UK Limited (London), Splitit (US), and UNIVERSUM Group (US). The major players are continuously involved in figuring out the advance and needed solutions as per the requirement parallelly, provide updates accordingly to the solutions.

Pine Labs, a digital payment company has secured US$75-100 million funding from a US-based hedge fund Lone Pine Capital in December 2020. The company has also invested in major US-based startups like Uber and others. Moreover, Pine Labs is now the third most-valued fintech firm in India after Paytm and PhonePe. Pine Labs is doubling down on its ‘buy-now, pay-later’ solution for retail customers and it basically distributes point-of-sale (PoS) machines to merchants so that they can accept payment.

Market Segmentation

Market By Type

E-commerce Merchants

Brick & Mortar Merchants

Market By Application

Small and Medium Enterprises (SMEs)

Large Enterprises

Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa