The idea of Partial Payment
Partial Payment is a retail service that allows customers to pay a certain portion of their receipts. Retailers may accept partial payments in advance and offer some special kinds of credit or payment plans to collect the rest amount later.
Benefits of Partial Payment policies
Enhance customer experience
From the customers’ perspective, partial payment can be considered as a beneficial service. One of the common concerns for customers is the price. With partial payment service, customers are able to enjoy a seamless shopping experience without having to worry about the price.
Increase conversion rate
Partial payment somewhat solves the problem of purchasing. For example, due to certain reasons, a customer is not able to make a full purchase for an urgent-needed item at the moment. As a result, the transaction may not be made since they cannot afford it now and the store has no policies for this situation.
In contrast, the partial payment policy allows him/her to use his possible amount of money in advance and complete the transaction later. In other words, this service tends to assist retailers to transform more leads and consequently increase their conversion rate.
Attract budget buyers
Some buyers may feel more comfortable spending a certain amount of money with a long-term period rather than at once. In such cases, partial payment seems to be the best option. Retailers are entirely able to attract budget buyers by offering partial payment policies regardless of whether or not the products are pricey.
Some extra conditions retailers can use to prevent possible risk
- Specify the payment period based on forms of payments. The payment period can be adjusted depending on the total value of each receipt.
- Specify the amount of prepayment. Usually, customers are required to prepay at least one-third of their total receipts.
- Impose possible rewards for early payment completion as well as proper penalty for breaking contrasts.