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Splitit Payments Ltd., a white-label buy now, pay later provider, has partnered with AliPay to offer Splitit’s Pay After Delivery option to consumers shopping on the AliExpress e-commerce marketplace.
Pay After Delivery allows consumers to make a purchase using a credit card, then pay for it after delivery. The payment option is being offered at AliPay’s request, a Splitit spokesperson says. AliExpress is an e-commerce marketplace owned by Alibaba Group Holding Ltd., which operates the Alibaba.com marketplace and holds a 33% stake in Alipay.
Providing the option to pay on delivery can help consumers better manage their finances for the purchase of products that have long lead times for delivery, such as up to 30 days, a Splitit spokesperson says. Sellers on AliExpress are Chinese-based businesses that typically have long delivery times for items shipped internationally. Products on the marketplace include consumer electronics, jewelry and watches, mobile phones, and automobiles and motorcycles, according to the AliExpress Web site.
An AliExpress spokesperson says goods can be delivered in 10 business days in most major European cities and 15 to 20 days, on average, for more remote locations in Europe, according to a Wall Street Journal article. AliExpress also reportedly offers a delivery guarantee, which provides some compensation to shoppers if their merchandise is not delivered on time.
Consumers using Splitit’s Pay After Delivery option have their card authorized at the time of purchase to ensure they have the needed open-to-buy. After receiving authorization, a hold is put on the transaction, and the consumer’s card is not charged until after the item has been delivered. Upon confirmation of delivery, consumers have the option to pay in full or spread payment over installments. With installments, the consumer’s card is charged monthly for the amount of each installment.
Splitit will leverage Checkout.com’s payment-acquiring capabilities to process the card-based transactions.
AliPay is initially rolling out Pay After Delivery in Germany, France, and Spain, and plans to expand it to other countries. Paying for products at the time of delivery is a popular payment option in Germany, the Splitit spokesperson says.
“Our work with Alipay is a testament to the flexibility of Splitit’s platform and the strength of our new partnership with Checkout.com. Together we are providing a valuable resource for sellers and shoppers by powering payment after delivery,” says Splitit chief executive Nandan Sheth in a prepared statement.
In related news, merchant-services technology provider Ingenico is partnering with BNPL provider Klarna AB to add Klarna’s payment options to Ingenico’s cloud-based payments-as-a-platform service (PPaaS). Ingenico’s PPaaS enables banks and merchant acquirers, for example, to select from a catalogue of payments and value-added services without the need to develop software and is compatible with a variety of POS terminal brands.
Ingenico provides payment technology to more than 1,000 banks, acquirers, integrated software vendors, payment aggregators, and fintechs, and has about 40 million point-of-sale devices in service globally.
Global processor Worldline S.A. will make Splitit, a white-label buy now, pay later provider, available to its roster of merchants and marketplaces, starting first in North America.
