Published on 04/12/2024

Payment in 3 or 4 instalments for the home | The solution for evolving needs

As the home sector undergoes significant transformations—ranging from the surge in second-hand markets to rapid digitalisation and shifting consumer expectations—innovative payment solutions have emerged as a strategic tool for merchants. Antoine Roch, a Floa expert with a decade of experience in web marketing and retail, sheds light on these new dynamics. In this interview, he shares his insights on the market and explains why split payment in 3 or 4 instalments has become essential for home furnishing and equipment.

Why is payment in 3 or 4 instalments so popular for home furnishings?

Split payment has become an essential solution in the home sector, whether for bathroom renovations or purchasing household appliances. Our latest Kantar study confirms this trend: 70%¹ of consumers use payment solutions, with 44%¹ relying on them regularly. These figures highlight a clear shift, showcasing how deeply these solutions are embedded in consumers’ everyday lives.

France stands out as one of the most mature markets in Europe for payment in 3 or 4 instalments. This leadership is no accident. In today’s economic climate, shaped by inflation and the housing crisis, split payment meets a genuine consumer need.

What’s especially noteworthy in our sector is that appliances (dishwashers, microwaves, cooktops) and high-tech products consistently rank among the top three categories for use of BNPL² solutions. This is largely because the total cost of these items often represents a significant investment for households.

What are the major trends in the home sector?

The home sector is undergoing several major transformations. One of the most striking is the explosive growth of second-hand purchases. The statistics are telling: more than one in five¹ pieces of furniture bought by households is now second-hand, whether it’s a dining table or a TV stand. This shift is no longer a niche trend but a crucial segment where brands must position themselves to stay relevant.

At the same time, we’re seeing significant changes in business models. E-commerce pioneers are increasingly turning to the development of marketplaces, broadening their range and market reach.

For brick-and-mortar stores, the transformation is equally significant. They are now placing advice and customer service at the core of their strategies while embracing a fully omnichannel approach. This shift is paired with ongoing digitalisation, creating a seamless customer experience between online and offline interactions³.

The sector is in a state of flux, where innovation and adapting to evolving shopping behaviours are essential to staying competitive.

How is BNPL² adapting to these new consumer habits?

The evolution of BNPL² in the home sector is particularly dynamic. Today, deferred payment has become a widely adopted practice among home goods retailers, whether it’s for purchasing large appliances or high-end designer furniture. It’s no longer a mere option—it’s a strategic necessity.

What’s particularly noteworthy is the growing emphasis on user experience. Merchants are seeking secure payment solutions that offer seamless subscription journeys for their customers. This focus is entirely justified since payment is the final touchpoint in the customer experience—a crucial moment that must not be overlooked.

Innovation also plays a central role in the strategies of BNPL2 providers. We are constantly working to deliver smoother, more intuitive experiences for customers. In this fast-moving sector, remaining static is not an option: consumer expectations are evolving rapidly, and our solutions must keep pace—or better yet, anticipate these changes.

This constant drive for innovation enables us to maintain payment processes by credit card that perfectly align with the needs of both merchants and consumers.

What innovative solutions does Floa bring to the sector?

At Floa, innovation is in our DNA. We continuously develop new payment solutions that meet evolving market expectations. One of our standout innovations is Floa Circle Pay³, a solution designed specifically for our clients and partners. It blends a cutting-edge customer journey with financing options that promote the circular economy. In practical terms, customers can pay for their tech products monthly at a more attractive rate, thanks to options that encourage product refurbishment. For our merchant partners, this solution sends a powerful message supporting an ambitious CSR⁴ policy.

Another major strength is our data-driven approach. Thanks to the expertise of our Score and Fraud teams, we can fine-tune acceptance rates and provide transparent KPIs. This data-led strategy, combined with our cross-industry expertise, enables us to deliver tailored solutions that precisely meet the needs of each merchant.

How does Floa support its partners in practice?

Floa’s strength lies in our comprehensive approach to partnership support. With deep expertise in the retail sector and a solid understanding of industry expectations, what truly sets us apart is our commitment to placing people at the heart of our strategy.

Our industry experts are involved at every stage: before, during the onboarding process, and throughout the partnership. This continuous presence allows us to maximise the use of our payment solutions and boost sales for our merchant partners.

We provide truly tailored support, offering transparent KPIs and regular performance reviews. It’s this combination of technical expertise and personalised service that drives the success of our partnerships.

Want to learn more about our payment solutions for the home sector? With over 15,000 partners already trusting us, Floa is one of France’s leading providers of split payments. Antoine Roch and our team of experts are ready to assist you. Request a personalised demo today!

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