It is not always easy to pay several hundred euros in cash to replace your washing machine or buy a new television.
the installment payment is there to prevent you from delaying your purchase.
We take stock of this mode of consumption.
Broad democratization
If the slogan "Pay in 3 installments without charge" has long been displayed on the shelves of household appliances and high-tech, the practice was, until recently, limited to large brands.
"The rise of many fintechs such as Alma, Pledg and Scalapay has made it possible to democratize split payment for two years, by competing with credit companies such as Cetelem, Cofidis or Oney", explains Kevin Ohana, the founder of Joe, application offering staggered payment solutions.
The Federation of e-commerce and distance selling has also estimated that the split payment represented around 15% of the turnover of the sector since the confinement of March 2020, while specialists predict that it will reach 28 % of the online market globally in the next five years.
Easy payment
The players in split payment generally work with physical merchants and e-commerce to integrate this solution into their product offerings.
Rather than paying 800 euros for your new IT tool, the site or the store will offer you to pay a first part immediately and then spread the rest of the payment over 2 or 3 monthly payments.
This payment facility is often offered "free of charge".
It is the merchant who bears the cost of this service, in return for an increase in sales of 20 to 30% according to specialists.
However, it happens that costs are still billed to the consumer, especially for large amounts.
In this case, the cost is often expressed as a percentage of the total purchase amount.
Beware of hidden costs
At first glance, there are only advantages to paying in installments, but you have to be on your guard. As Joe's founder reminds us: “In the sense of the law, if all the installments are paid within a period of less than 90 days, that is to say 3 months, it is not a credit. consumption, but simply easy to pay. This nuance makes all the difference, since it implies regulations that are much less protective of buyers.
In fact, your solvency is only rarely checked at the time of hiring.
It is therefore necessary more than ever to be responsible in order to be able to assume future repayments.
All the more so since even offers "3 times free of charge" can involve painful penalties in the event of late payment and thus increase situations of financial fragility.
Before accepting, take the time to check these famous lines of the general conditions of sale.
Faced with the risk of over-indebtedness, the European authorities are also planning to more strictly regulate the split payment, for example by reclassifying it as a loan of more than one day.
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The mini-loans controversy
Do you know the mini loan or instant loan? This is an advance not allocated to a purchase (unlike the split payment) and repayable within 3 months, which therefore also escapes the rules of consumer credit. Most recently, UFC-Que Choisir filed complaints against three companies for "deceptive marketing practices" because of the fees imposed. Bling, one of the start-ups targeted, offers for example to pay you up to 100 euros in 3 to 5 days free of charge, but against 7 euros for an instant transfer. Likewise, the Express Cashper option allows you to receive up to 1,000 euros in 24 hours ... for a fee of 30% of the amount borrowed. As for Floa Bank, the third company targeted, it applies a commission of 2.35% on the amount which can reach 2,500 euros.Thanks to this legal action, the consumer association hopes to encourage the legislator to regulate these mini-credits.
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