As consumer preferences evolve, the convenience and flexibility of financial transactions are in the spotlight. Samsung has partnered with Splitit to bring installment payment options to Samsung Wallet users, enabling transactions at in-store points of sale. This initiative represents a bid to cater to consumer demand by enhancing the financial experience through more flexible payment solutions. The move comes as companies recognize the importance of blending traditional shopping experiences with modern financial tools.
When compared to previous developments in payment solutions, Samsung’s latest collaboration marks a significant step towards integrating installment payments in brick-and-mortar settings, traditionally dominated by upfront payment methods. Installment options were previously popular mostly in online retail environments. This integration is expected to bridge the gap between digital and physical retail experiences, offering consumers more choices regardless of their shopping means.
What Led to This Collaboration?
Splitit CEO Nandan Sheth highlighted the shift in consumer payment preferences, noting that most U.S. consumer purchases happen in stores, but installment payments have been largely limited to online shopping. He stated,
“In-store shopping still accounts for the majority of U.S. consumer spending, yet installment payments have remained largely confined to eCommerce.”
This partnership aims to change that dynamic by providing greater payment flexibility for consumers and enhanced sales opportunities for retailers.
How Will the New Feature Impact Consumers and Merchants?
With the new installment payment feature in Samsung Wallet, consumers can expect a more seamless checkout process without needing to go through complex procedures. For merchants, this innovation may lead to larger basket sizes and better conversion rates.
“Our partnership marks a pivotal moment in the evolution of payments and customer experience,”
Sheth remarked, emphasizing the anticipated benefits on both ends of the transaction.
Despite efforts to expand buy-now, pay-later (BNPL) options into physical stores, consumer adoption has faced certain hurdles. Recent data highlighted that during shopping peaks, BNPL accounted for only 7.4% of in-store transactions compared to online. Research indicated some consumers would still make their purchase even if installment options weren’t available, reflecting an area of opportunity this partnership seeks to address.
Splitit and PYMNTS reported that while impulse and emergency purchases often lead consumers towards credit cards, a growing number are attracted to the prospect of paying in installments. The flexibility to spread out payments could be a driving factor for consumers facing unplanned expenses, highlighting the necessity for more adaptable payment options in retail environments.
By incorporating installment payments through credits, Samsung and Splitit’s collaboration sheds light on an evolving retail frontier where traditional consumer spending habits are meeting digital innovations. Their partnership potentially sets a new standard in retail transactions by marrying technology with consumer finance needs.
