Published on 01/10/2024

Payment in instalments | The new driving force in the bike market

The bike sector is experiencing a major shift, thanks to a rising enthusiasm for eco-friendly transport and environmental awareness. In this landscape, financing is pivotal in broadening access to these new mobility solutions. To delve into the impact and potential of payment in instalments in this sector, we spoke with Guillaume Racine, our financing solutions expert. With six years in Fintech¹ and a deep passion for cycling, Guillaume offers a fresh take on the financial and technological challenges facing the sector.

Can you give us an overview of the current bike market¹³? 

The bike market¹³ has been booming since the COVID-19 pandemic, driven by a mix of rising environmental awareness, a push towards fitness, and the expansion of cycling infrastructure by the government. Financial incentives, such as subsidies for electric bikes from both government and businesses, have also played a significant role in this growth.

However, 2023 has seen a slight dip, mainly due to overstocking and a higher rate of existing bike ownership¹³. Still, the electric bike (e-bike) sector is thriving.

Our customer base breaks down into three main groups:

Affluent professionals who use bikes for commuting
cyclists
occasional riders

While big names like Decathlon and our partner Sport 2000 lead in sales volume, independent and chain bike shops are standing out in terms of value, particularly with e-bikes, where the average basket reaches €2,700². This web-to-store¹⁰ trend underscores the value of in-store advice, especially for high-end purchases.

How does instalment financing meet the unique needs of the bike market?

Flexible payment solutions aren’t just boosting sales in the automotive and motorcycle sectors—they’re also becoming crucial in the bike market. With high average basket amounts, the ability to pay in instalments plays a key role. At FLOA, we’re a leading provider of split payments in France, offering flexible solutions like payment in 3³ or 4³ instalments, perfect for these significant purchases.

Our expertise in the bike market allows us to achieve a high acceptance rate and convert as many financing requests as possible. Our solutions extend beyond just the bicycle itself; they also cover essential accessories such as helmets, locks and panniers.

In a highly fragmented market, we have strategically chosen to focus on partnerships with Point of Sale (POS) systems. This approach ensures seamless integration into the daily operations of bike retailers, providing a smooth experience for both merchants and customers.

The market’s evolution, with the rise of e-bikes⁵ and cargo bikes, has also highlighted the need for financing for after-sales services (like changing tyres, inner tubes, cranksets or chains), which can come with hefty bills. Our goal is to offer a comprehensive solution: financing, insurance and after-sales service, all in one place.

What is your view on the future of BNPL in the bike sector? 

The outlook for BNPL⁶ in the bike sector is very promising. France is the third-largest market in Europe¹¹ by value, behind the Netherlands and Germany, suggesting strong growth potential.

One trend that’s catching our eye is the rise of refurbished bikes. Increasingly, merchants are buying used bikes from individuals or other stores and giving them a new lease of life. This trend aligns perfectly with our view of making mobility both more sustainable and accessible.

When it comes to payment options, we see three main categories:

cash payments
instalment financing, which we provide
long-term rental (LTR), offered by our partner BNP PF⁷

This range of options meets varied consumer needs, whether for an impulse buy or a long-term investment.

What partnerships has FLOA developed in the bike sector?

At FLOA, we’ve established strategic partnerships with leading ERP⁸ providers in the bike sector. Merchants working with these systems can seamlessly access our payment solutions within tools they already use. Two key collaborations highlight our approach:

Our first partnership is with Shifter, which equips over 600 shops across France. We’ve integrated our payment solutions—3X³, 4X³, 10X⁴and cash payments, in accordance with the law—directly into their ordering system. Our collaboration goes beyond mere technical integration: we also train their sales teams and jointly host webinars for their clients.
Our second collaboration is with Futurosoft, an all-in-one management software used by over 2,000 bike professionals in France, Switzerland and Benelux. Here too, our payment solutions are integrated into their platform, and we work closely together to train and support their network.

These partnerships place us at the heart of the bike ecosystem. We are present at industry events like the Pro-Days¹², where we can interact directly with sector players and present our solutions.

Through this approach, we now support over 400 partners in the soft mobility industry, making FLOA a key player in financing within this rapidly growing sector.

How does FLOA approach the specific needs of the bike market? 

At FLOA, we focus on a deep understanding of the bike market to address its unique needs. We aim to thoroughly grasp the specific demands of both industry players and consumers in this ever-evolving sector.

Our main objective is to boost the visibility of FLOA’s services in this area. Bicycles are a key strategic focus for us and BNP PF⁷, perfectly aligning with our CSR⁹ goals.

In practical terms, we offer a comprehensive support process for our merchant partners. This begins with detailed preparation for the initial meeting, followed by a clear definition of their needs. Together, we develop a tailored action plan, which includes implementing our solutions, providing training and promoting our offers within their network.

Alongside these efforts, we maintain close relationships with our ERP⁸ partners. Regular exchanges, updates and webinars ensure we stay aligned with their needs and market developments. Our active participation in events like Pro Days¹² strengthens this connection and keeps us at the forefront of sector trends.

But our support doesn’t stop there. We provide ongoing monitoring through our dedicated account managers, who act as intermediaries between FLOA and our partners. We pride ourselves on offering high-quality customer support. Our telephone assistance service, available six days a week from Monday to Saturday, ensures a swift and effective response to any queries or issues our partners or users may have.

Are you a bike retailer, manufacturer, accessory seller, or cycling equipment provider? Buy Now Pay Later solutions are a golden opportunity to boost your sales, build customer loyalty and stand out from the competition. JLIB_HTML_CLOAKING and the FLOA team are here to help you integrate these solutions into your offerings. With our tailored solutions designed for your daily management tools, rethink your customers’ purchasing experience and accelerate your growth!

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