[Introduction of Paidy's deferred payment system] What are the advantages of deferred payment?

While building and operating a Shopify store, we received a request from a client to introduce a deferred payment option, which gave us the opportunity to implement the deferred payment service "Paidy."

Many e-commerce businesses likely consider factors such as whether deferred payment options are common in other stores, and what effects they have when implemented.
This article will explain why post-payment options are necessary for e-commerce sites, what kind of service Paidy is, and how well it works with Shopify!

While deferred payment has become mainstream recently, this article will explain why it is frequently used on e-commerce sites and the reasons why deferred payment is in demand on e-commerce sites.

There is a certain number of users who do not have a credit card, or who have one but do not want to use it, and deferred payment services serve as an option for this group.
Unlike traditional cash payments such as cash on delivery or invoice payments, deferred payment is characterized by its high level of convenience for users, as it can be completed entirely on a smartphone.

Entering credit card information or registering as a member can be a barrier to purchase, and many customers abandon their shopping carts as a result.
Simply offering a deferred payment option that doesn't require a credit card or prior registration can significantly lower the barrier to purchase.

Cash on delivery and prepayment at convenience stores are payment methods that place a surprisingly large operational burden on stores, due to factors such as return shipping costs for refused deliveries and automatic cancellations due to expired payments.
Switching to a deferred payment system can reduce this operational burden.

Paidy is a service provided by Paidy LLC, which was established in 2008.

The biggest feature of Paidy is its ease of use; you only need to enter your email address, mobile phone number, and a 4-digit verification code at the time of purchase to complete the payment.

Payments are made in a lump sum by the 27th of the following month via convenience store payment, bank transfer, or automatic bank withdrawal.
Even if you make multiple purchases, your bill will be consolidated into a single monthly payment, so you won't have to go through the payment process each time.

Now, let's look at how Paidy can be useful from the perspective of e-commerce businesses!

By introducing this as a payment method for young and middle-aged people who do not have credit cards, we can expect to acquire new customers.
Furthermore, it could be considered as a measure to avoid missing out on potential customers who prefer not to use credit cards.

With Paidy, you can use 3, 6, or 12 installment plans with no installment fees if you pay by bank transfer or direct debit.
Identity verification is only required the first time; after that, you can easily choose installment payments.

By adding a widget to the product page that displays "From ¥X per month," you can implement strategies aimed at improving conversion rates.

When integrating Paidy with Shopify, the connection is made through the payment processing company's system.
Therefore, there is no need to set up the connection from scratch, and it can be implemented relatively smoothly.

Paidy also provides a manual for integrating with Shopify.
Basically, the installation can be completed by following the manual.

The installation manual isHere

The specific fee rates vary depending on the contract terms, so we cannot provide detailed figures here, but there is a merchant fee involved in implementing Paidy.

However, it can be implemented without any initial or monthly fees.
The fact that payment to the merchant is guaranteed even if a user fails to pay is reassuring.

Post-payment is a payment method that can address multiple issues simultaneously.
Among them, Paidy has a strong appeal to young people and features such as interest-free installment payments in 3, 6, or 12 months.
One of the attractive features of Shopify stores is that Paidy is relatively easy to implement.
Shopify owners considering implementing a deferred payment option should definitely consider this as one of their choices!