‘Buy now, pay later’ option more popular than ever before

Shoppers’ habits and preferences in online shops are constantly changing. Those e-merchants who keep up to date with the latest trends and meet clients’ expectations will also have a competitive advantage and stand to benefit greatly from innovation.

‘Buy now, pay later’ (BNPL) is a payment option that has gained huge popularity in recent years. We are pleased to announce that this solution is now also available to all LHV merchant clients as LHV instalment.

Against the backdrop of rapidly rising prices and interest rates, and the accompanying economic uncertainty, the option to receive goods immediately and pay for them later has become a popular alternative to the traditional hire-purchase. According to the FIS Global Payments Report 2024, the ‘Buy now, pay later’ payment method accounted for 5% of all global e-commerce transactions last year and is expected to multiply in the coming years.

The popularity of instalments is largely driven by younger shoppers. Almost half of Generation Z have already used or plan to use an instalment service in the coming years (eMarketer). Therefore, as an e-merchant with young people as one of its target groups and a growing client base, offering the possibility to pay by instalments is essentially a must in order to stay competitive.

Clothing is the most popular category for BNPL purchases (PYMNTS). Almost two thirds (63.5%) of respondents who use the BNPL service have bought clothes. This means that the service is not only used for very expensive purchases but also for smaller everyday purchases to better plan and spread out one’s spending.

How can I integrate the instalment payment method into my online shop?

Adding LHV instalment to your online shop gives you the chance to win back abandoned shopping carts with direct offers to pay by instalments, or even separate promotions where instalments help pay for a larger shopping cart.

Technically, integrating the payment method with the online shop is as easy as interfacing bank links. With LHV’s ready-to-use solutions, you can start offering this payment method to your clients without any hassle. Today, a ready-to-use solution is available for all major online shop platforms, as well as direct API interfaces.

Getting started

If you are already an LHV client, let us know by sending an email to makselahendused@lhv.ee and we will sign a contract with you. If a contract has been signed and you have already set up the LHV bank link solution in your online shop, the instalment solution will be activated automatically.

If you are an LHV client but have not yet set up our online shop solution for yourself, send us a request and we will find the best solution for you.

Learn more about LHV e-commerce solutions