It is a global trend that is spreading like wildfire in Italy as well. This is the “Buy now pay later” (Bnpl), or “buy now and pay later”, a zero-rate deferred payment solution for the purchase of any type of product. “But we were the forerunners”, he is keen to emphasize Alessandro Borzacca, CEO of Cofidis Italia. And in fact the French company, specialized in remote credit, had already arrived at the purchase in installments even for small amounts ten years ago with PagoDil, valid for physical retail.
Payment by installments
«The idea was born from the need to be able to offer a leaner and faster alternative, aligned with the needs of consumers – says Borzacca -. At that time the credit market was based on traditional logic. We arrived with an innovative product and process, which takes place in real time ». The operation is simple: just provide an identity document, tax code, debit card and you can access the installment payment, in stores as well as on affiliated ecommerce sites. The numbers certify the success of the initiative. «Our surveys – reiterates the CEO of Cofidis – show that 37% of users would not have purchased a product or service for which they had gone to the store without PagoDil. And beyond the 30% of these customers made a more expensive transaction than they anticipated».
Databases to evaluate the customer profile
The deferred payment, therefore, allows a a larger audience of customers to complete their purchases, but this does not translate into overconfidence on the part of the credit issuer
. “There is a physiological data of insolvency in all activities of this type – explains Borzacca – but after ten years we are able to protect ourselves with sustainable risk levels. Credit issuance and accumulation of installment payments depend on customer profiles. For instance, we use the databases to verify their indebtedness ». The satisfaction with the results of PagoDil is such that, although there are new projects in the pipeline, Cofidis has decided to focus on this initiative: «It is an important innovation – concludes Borzacca – and the new version is a great step forward. We see this from the continuous interest of our partners ».