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Personal loans for online shopping: what are the advantages?

Those running an ecommerce have a new payment method at their disposal to increase sales, average ticket, and improve the shopping experience for end customers. With easypay’s technology, it is now possible to offer a personal loan solution for online purchases. Find out what it is, how it works, and what the advantages are for brands.

What is a personal loan?

Personal credit is a type of loan that allows the end customer of an online store to request a specific amount of money and pay it back through fixed installments over a certain time frame. For example, if you run an e-commerce in the technology field, your customers may apply for a personal loan to finance various purchases in your store, such as getting new appliances.

Personal credit works in constant monthly installments, which means that from the moment you apply for it, you pay off a fixed amount each month for the time frame you choose to contract. No collateral is required, such as a house or a guarantor, as is the case with a home equity loan. This type of credit is now available quickly and 100% digitally, and can be accessed directly from the merchants’ online stores.

What is the personal loan solution for online stores?

Buy online now and pay in installments according to the financial situation of each customer. This, simply put, is the personal credit solution that easypay has developed in partnership with Santander Consumer Finance, specifically for online shopping also known as Buy Now, Pay Later.

Until now, applying for a personal loan was a time-consuming process. After choosing the financial institution, the consumer had to send all the necessary documentation to have his process analyzed. Only then would the bank analyze the risk and determine whether the request would be approved or not.

The easypay Santander Consumer Finance solution for online shopping is a streamlined option for merchants. They can now make financing solutions available to their end customers directly in the online stores. Contrary to what happened in the past, the customer’s credit application process is simple and digital. After choosing the payment method, the credit submission and approval are done online in minutes.

What are the advantages of making personal credit available to merchants?

Making new online payment solutions available to consumers is one of the priorities for those who run an online store. Personal loans reinforce this offer, with many advantages for merchants. These are the 4 main ones.

1. Increase in sales and average purchase value

By being able to pay in installments, consumers can choose the products they really need, without affecting their immediate liquidity. For online stores, this solution increases the average purchase amount, as well as sales, promoting growth in their business.

2. New means of payment for online stores

The availability of new means of payment is a key competitive edge for online stores that reduces the number of abandoned sales. Santander Consumer Finance is an alternative payment method, presented at the easypay checkout alongside consumers’ preferred payment choices, such as Visa or Mastercard credit cards or MB Way.

The process is simple and digital. First, the customer chooses this option at the checkout as any other payment method. Then, they are directed to the Santander Consumer Finance page where they must prove their identity, choose the desired monthly installment, and digitally sign the documentation. The submission and approval of the credit is completed in minutes.

3. Merchant do not need to be a credit intermediary

Santander Consumer Finance is the leader in consumer finance, operating in 16 European countries and part of the Santander Group, one of the most important financial institutions in the world. With this solution, merchants do not need to be registered with the Bank of Portugal as a credit intermediary. Easypay acts as the intermediary and Santander Consumer Finance as the lender.

The sign-up process for merchants is very simple: all merchants in the categories of Personal Loans – Home and Other Finalities can sign up. This is the case, for example, of brands in the areas of Home Equipment and Services, Travel and Leisure, Sports, Aesthetics, Musical Instruments, Auto Accessories, or Fashion.

How to provide personal credit solutions in your online store?

If you are an easypay customer acting in these categories and have API integration or easypay checkout, you can offer this payment method after submitting an application, which will be reviewed by easypay and Santander Consumer Finance in about 5 days.

If you are not an easypay customer, the first step is to join. Join easypay directly on the website under “Join” by completing the onboarding process. Specify that you want to provide the payment method and the process goes to easypay and Santander Consumer Finance for approval. Start the onboarding process here.

Easypay, permanent innovation in the world of payments

With about 19000 customers, at easypay we work every day to innovate in the payments industry and help the Portuguese ecommerce go further. We develop innovative solutions, such as modules and plugins for the most popular platforms like Shopify, Magento, Woocommerce or Prestashop. And we have created an API that can be used to provide one-off payments, frequent payments, and subscriptions. All this with a onetime subscription. Start today to increase your online sales here.