Net Element (NASDAQ:NETE) has announced that its PayOnline subsidiary has introduced an “Instant Credit”, a feature that will allow online merchants sell goods and services on credit.
As quoted in the press release:
By integrating Instant Credit, merchants will receive the same settlement process inclusive of both bankcard and payables due from consumers. Instant Credit enables the consumer to directly interact with the integrated credit institution for instant access to a loan, creating an incentive for merchants to promote this service to achieve higher conversion rates at checkout.
According to a recent research, a high number of Russian consumers buy expensive goods and services on credit, though only a small number of online sites provide this payment option. Instead, most sites redirect consumers to a complicated loan application page, which often results in abandoned shopping carts at checkout. PayOnline solves this problem by providing a fully integrated shopping experience, via online and mobile devices, with an instant approval process at checkout. The Instant Credit feature is available as a stand-alone product with no other purchase requirements.
“We expect that using this new method of payment will allow our clients to grow their sales volumes and average ticket size,” commented Maria Goryacheva, PayOnline product director. “The solution will be especially useful for the online sale of digital technology and household appliances, travel services, educational institutions, and other enterprises with a high average ticket size. For maximum effect, and to reduce the risk of high-priced items being left in the online shopping cart, it is important to let consumers know they have the option to buy online goods on credit early in the shopping process.”