Published on 20/01/2025

BNPL: Revolutionising e-commerce thanks to a strategic partnership between Floa, Rakuten and ProcessOut

The split payment or Buy Now Pay Later (BNPL) market is growing in leaps and bounds, transforming e-commerce and retail practices. A round-table discussion between Floa, Rakuten and ProcessOut was an opportunity to analyse the issues, opportunities and challenges of this payment method. Here's a round-up of the highlights.

Why BNPL is at the heart of e-commerce strategies

BNPL is becoming as an essential solution for marketplaces and retailers, offering a flexibility that appeals to consumers while increasing conversions and revenues. But integrating such a solution is not without its challenges.

For Rakuten, a leading online marketplace, the choice of BNPL partners was based on strict criteria: Measurable ROI¹, high performance and seamless integration. The objective was clear: maximise conversion without compromising profitability.

Floa offered its tailored solutions, such as payment in 3x or 4x² and 10x³, which could be adjusted dynamically according to customer needs and profiles. These financing options met a variety of expectations while also complying with strict regulatory constraints.

The pillars of BNPL's success: synergy and data

1. Data, a strategic lever

In the world of split payments, data quality is crucial. Good data results in the following:

Better risk management thanks to granular scoring.
Customised offers based on customer profile and type of transaction.
Smooth processes for optimal conversions.

Rakuten and our experts stressed the importance of sharing and using data effectively to reduce the risk of insolvency and fraud. Thanks to our partnership, Rakuten's default rates remain exceptionally low.

2. Regulations, a constant challenge

Given the changes planned between now and 2026, in particular the strengthening of KYC (Know Your Customer) and digital identity regulations, BNPL providers need to think ahead. We have already integrated these requirements into our solutions, guaranteeing compliance while offering a simplified user experience.

Technical challenges: integration and optimisation

Payment infrastructure provider ProcessOut plays a key role in facilitating the integration of BNPL solutions. Its modular technology reduces implementation times and ensures the agility that is essential for complex projects.

1. Meticulous technical integration

At the round table, the speakers shared their experiences: integrating a BNPL solution can take from one month to several quarters, depending on its complexity. ProcessOut has enabled Rakuten and Floa to work together effectively, thanks in particular to an in-depth data quality test phase.

2. Risk management at the heart of the system

BNPL requires rigorous risk management, particularly for long financing options such as 10x³ payments. The longer the repayment period, the greater the risk of insolvency. Thanks to advanced algorithms and granular data management, our payment solutions minimise these risks while ensuring a seamless user experience.

A partnership based on trust

The discussions highlighted a key notion: BNPL works best when partners work closely together. Floa and Rakuten, with the support of ProcessOut, have succeeded in creating a win-win partnership where each party has full visibility on data and performance.

"Risk management in BNPL is based on a careful balance between shared data and mutual trust between partners", emphasised one of the speakers.

Outlook: BNPL, a strategic opportunity

With consumers increasingly attracted to flexible payment solutions, BNPL represents a major strategic opportunity for both marketplaces and retailers. However, to maximise its potential, it is essential to:

Choose reliable partners capable of offering agile solutions that comply with the regulations in effect.
Put data at the heart of decision-making, by investing in high-performance scoring systems.
Anticipate regulatory changes, to remain competitive while guaranteeing a seamless user experience.

BNPL, a key growth driver

The round table discussions showed that split payments are much more than just a financing option: they are a growth lever that, when properly applied, can transform merchants' conversion and loyalty strategies. With players such as Floa, Rakuten and ProcessOut at the forefront, the future of BNPL is bright.

Whether you're an established business or a start-up, integrating BNPL solutions could well be your next big challenge... and your biggest opportunity.

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