Deferred payment – definition
Deferred payment is a transaction model in which the customer receives a product or service immediately but pays for it at a later date, usually after a pre-defined credit period. This allows customers to use products or services without having to pay immediately, which can be particularly attractive for online purchases. Deferred payment is often offered by online stores and other marketplaces as a form of flexible financing for consumers.
How does deferred payment work?
Deferred payment is offered by many online stores, as well as some brick-and-mortar stores. To use this payment method, customers must register with the deferred payment service and provide personal information such as name, surname, email address, phone number, and bank account number.
The purchase process using deferred payment is the same as with traditional credit card payments. The customer selects a product or service, adds it to the cart, and proceeds to checkout. At the checkout stage, they select the "deferred payment" option and provide their personal information.
After placing an order, the customer receives an order confirmation email. This email also includes a payment link. The customer must click the link and make payment within a specified timeframe, usually 30 days.
If a customer fails to make a payment on time, the company offering deferred payments may charge interest.
Deferred payments are a popular form of payment because they allow customers to purchase products or services without having to pay for them upfront. This is particularly beneficial for those who don't have sufficient funds to purchase a given product or service or who want to maintain financial liquidity.
Systems enabling deferred payment in Poland
PayU
PayU is Poland's largest online payment provider. Its "Pay Later" service allows customers to purchase goods or services in online stores without having to pay immediately. Customers can defer payment for 30 days at no cost.
Klarna
Klarna is a Swedish fintech company that offers deferred payments in over 60 countries, including Poland. With its "Buy Now, Pay Later" service, customers can purchase goods or services online and pay for them within 30 days of purchase. Klarna also offers the option of paying in installments.
PayPo
PayPo is a Polish fintech company that offers deferred payments in over 25,000 online stores in Poland. With the "Buy now, pay in 30 days" service, customers can purchase goods or services online and pay for them within 30 days of purchase. PayPo does not charge any fees for using the service.
Twisto
Twisto is a Polish fintech company that offers deferred payments in over 1,000 online stores in Poland. With its "Buy Now, Pay Later" service, customers can purchase goods or services online and pay for them within 45 days of purchase. Twisto also offers the option of paying in installments.
Blik
Blik is a Polish mobile payment system that allows customers to make cashless payments using their smartphone. With the "Buy Now, Pay Later" service, customers can purchase goods or services online and pay for them within 45 days of purchase. Blik does not charge any fees for using the service.
Dotpay
Dotpay is a Polish online payment operator that offers deferred payments under its "Buy Now, Pay Later" service. This service allows customers to purchase goods or services online and pay for them within 30 days of purchase. Dotpay does not charge any fees for using the service.
Allegro Pay
Allegro Pay is a deferred payment service offered by Allegro. This service allows customers to purchase goods or services on Allegro and pay for them within 30 days of purchase. Allegro Pay does not charge any fees for using the service.
How to use deferred payment wisely?
- Consider your financial capacity
Before opting for deferred payment, make sure you have sufficient funds to settle your bill by the due date. Avoid using this option if you are unsure of your financial ability to repay the debt.
- Find favorable conditions
Compare offers from different providers or stores offering deferred payment. Check additional fees, interest rates, and contract terms. Choose the option that offers the most advantageous and transparent options.
- Read the contract
Before accepting a deferred payment, read the agreement carefully. Pay attention to any additional fees, repayment terms, and any late payment penalties.
- Maintain payment discipline
Establish clear rules for repaying your debt. Try to make your payments on schedule. Avoid late payments to avoid additional fees.
- Be aware of the consequences of delays
Understand the consequences of late repayment. Delays can lead to financial penalties, interest rate increases, and, in extreme cases, entry into the debtor register.
- Monitor your obligations
Keep track of your deferred payment obligations. It's important to keep records and regularly check the status of your obligation to avoid unpleasant surprises.
- Don't use deferred payment impulsively
Avoid using deferred payment on impulse. Consider whether a purchase is truly necessary before committing to a deferred payment.
- Prepare for unexpected situations
Be aware that life situations can change. Be prepared for unexpected expenses or changes in your financial situation, and have a plan for how you will cope if difficulties arise.
How much does deferred payment cost?
Examples of deferred payment fees:
PayU: PLN 0 for deferring payment for 30 days.
Klarna: PLN 0 for deferred payment for 30 days, PLN 4.99 for deferred payment for 60 days, PLN 19.99 for deferred payment for 90 days.
PayPo: PLN 0 for deferring payment for 30 days.
Twisto: PLN 0 for deferring payment for 30 days, PLN 1.61 for moving the payment to the next settlement period.
Blik: PLN 0 for deferring payment for 45 days.
Dotpay: PLN 0 for deferring payment for 30 days.
Allegro Pay: PLN 0 for deferring payment for 30 days.
Can I use deferred payments on Shopify?
Yes, Shopify and Shopify Plus offer deferred payments through various payment gateways and apps.
To add deferred payments to your Shopify Poland store, you must first add the appropriate integration to your store. This can be done in the Shopify admin panel, under Settings > Payments. Once you've added the integration, you'll need to configure it with the details required by the deferred payments system.
Once the integration is set up, customers will be able to choose deferred payments when placing an order in your store.
