Russian consumers can avail of the Buy Now Pay Later (BNPL) services through a new product offered by the digital bank Tinkoff. The new service is known as Dolyame.ru. allows buyers to pay for goods without incurring interest while sellers receive full payment in their account without delays.
Purchase price can be paid into four instalments and customers need to cover only 25% of its price
According to Tinkoff, the Dolyame.ru. service allows the customers to split the purchase price into four equal parts. They only need to cover 25% of the price to make a purchase. The remaining amount will be debited from the buyer’s card on a bi-weekly basis until the full payment is received.
Stanislav Bliznyuk, chairman of the board at Tinkoff Bank, said, “The Doylame.ru service represents a win-win solution. Customers can get what they need in a simple and efficient manner, without the need to pay the full price”.
The service presents a great opportunity for online stores to increase their sales and average check, as well as attract new users at no extra cost. As a leading fintech company, it is the first to introduce this new payment method to the Russian market. Its creation has been the result of several factors successfully coming together at once.
Firstly, strong competencies were required in data analysis to allow payments to be processed fast and seamlessly. Secondly, unique technologies were needed to develop and integrate the service.
“Tinkoff was an ideal match for these conditions. I’m confident that Dolyame.ru will enable our business partners to increase their sales and win the trust of their customers,” he said.
Tinkoff said the payments through its new service can be used to purchase products that are usually not sold on credit or instalments such as clothes, shoes, cosmetics and accessories in online stores.
Tinkoff’s online and offline payment services for legal entities, known as Tinkoff Checkout will operate as a one-stop shop for the companies that combine both existing payment technologies of the Tinkoff ecosystem and new solutions. It includes services provided by CloudPayments, which is one of the leading Russian online payment companies.
The new Dolyami.ru service is available for purchases from Dinomama.ru and Puma stores, with Tom Tailor, Rive Gauche, Respect, Authentica Love, Streetball, Sneakerhead and others are expected to follow soon.
BNPL method to grow over 4% of all transactions
The growth of the BNPL payment option is taking over the payment market with many upbeat forecasts. FIS estimates that BNPL will account for 4% of all eCommerce transactions globally by 2024. FIS predicts that BNPL will grow 43% annually over the next three years, doubling its global market share. FIS said in the US, BNPL transactions will grow from a 2% market share to 5% by 2024.
BNPL services have become widely used all over the world. In the US, 56% of consumers have used them at least once, while 36% use this payment method at least once a month.
Based on the experience of American retailers, this payment method has increased conversion in online stores by at least 15%. The average check has grown by 60%. The 20% of users make a second purchase while the number of new customers who previously turned down purchases on account of high prices has grown significantly. Around 25% of consumers using the BNPL method are either millennials or generation Z.