How Installment Payment Solutions Can Boost Southeast Asia Business Revenue by 30%

January 03, 2025

In Southeast Asia's digital economy, businesses that provide installment payment solutions are significantly enhancing customer satisfaction while driving higher revenue. These flexible options simplify purchases for consumers and help businesses increase sales. Let’s explore how Fiuu can increase business revenue by 30% with installment payment solutions:

Access to a Larger Market Segment
Offering an installment payment solutions enables businesses to appeal to a wider market segment, particularly the middle class, which is rapidly expanding in Southeast Asia. This demographic values affordability and flexibility when making purchases. A study found that 84% of online consumers are more likely to buy when businesses offer flexible payment options.
Seamless Integration with Payment Gateways
Integrating an installment payment solutions into your business model requires a reliable payment gateway. Fiuu simplifies the process with smooth integration via APIs, SDKs, or pre-built plugins for popular e-commerce platforms. Customers can choose installment payments directly on the website or app, enhancing the shopping experience with a seamless process.
Increased Average Order Value (AOV)
When businesses offer customers the flexibility to break down payments into manageable installments, customers are more likely to increase their spending. This boost in purchasing power drives up the company’s AOV. According to RBC Capital Markets, businesses offering installment payment solutions lifted their AOV by 30% and conversion rates in retail by 20%
Higher Customer Retention and Loyalty
When customers are given the option to pay in installments, they often feel that a business truly understands their financial needs. This creates a stronger bond between the customer and the brand, leading to increased loyalty. Offering an installment payment solutions can improve retention, as customers are more likely to buy without financial pressure.
Improved Customer Experience and Increase Conversion Rates
Based on The Baymard Institute, 47% online shopper abandon their cart due to high fees and 11% do so because they are looking for more payment methods. To address this, businesses should offer flexible payment plans, as consumers are more likely to complete purchases with installment options. This is especially important in Southeast Asia, where many prefer installment payments due to lower disposable incomes.

Installment Payment Solutions (IPP) VS Buy Now Pay Later (BNPL) for Businesses

For businesses to compare between IPP and BNPL, below we have listed the features of both to highlight the differences:

Feature	IPP	BNPL
Payment Structure	Flexible and longer-term payment installments	Full short-term payment split into installments
Typical Duration	3-12 months or more	1-6 months
Customer Acquistion	Appeals to customers who seek financial flexibility and longer-term budgeting	Effective for attracting younger or budget-conscious consumers
Revenue Potential	Increases retention and repeat sales with long-term financial planning	Can increase sales and AOV due to immediate payment flexibility
Promotional Opportunities	Ideal for high-ticket items or larger product categories	Excellent for time-limited promotions and flash sales

Scale Your Business with Fiuu Installment Payment Solutions

Here’s how Fiuu can help scale your business and drive growth in Southeast Asia:

Localized Payment Methods for Southeast Asia
Southeast Asian customers generally prefer local payment methods and Fiuu supports 9 countries in the region with various installment payment solutions. These localized payment options benefit both consumers and businesses by providing a seamless payment experience.
Tap into the Region’s Growing E-commerce Market
The e-commerce market in Southeast Asia is expected to reach USD 200 billion by 2025, highlighting the increasing popularity of online shopping in the region. Fiuu helps businesses tap into this growing market with flexible payment solutions tailored to the region's needs.

Ready to boost your business revenue? Let Fiuu's installment payment solutions help you tap into the full potential of your market. Get started today and experience the difference in your business performance!

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