Whether shopping online or in a store, customers can use PayItSimple along with their Visa or MasterCard credit card and still get all the benefits of using their card. Cash back, points and frequent flyer miles will still be added to the customer’s account when they check out using PayItSimple. Upon approval, the purchase amount will be divided into installments that the customer has the chance to approve before finalizing the payment.
How it works
When a PayItSimple transaction is initiated, PayItSimple authorizes the credit card payment by reserving the available credit on the card. They then collect the installment amount due each month by issuing the authorization request again. Merchants are paid in monthly installments, and can access payment tracking, fraud detection, and other information through the PayItSimple app.
There is no need to apply for a new credit card, access a new line of credit, or qualify for a credit account in order to use PayItSimple. However, people cannot use PayItSimple unless the merchant they are purchasing from uses the PayItSimple service.
The integration with Stripe means the company anticipates more retailers will be able to offer PayItSimple to their customers. “We are thrilled to be working so closely with Stripe,” said Eric Benayoun, vice president of product and operations at PayItSimple.
Merchants and consumers both benefit
For consumers, the benefit of using PayItSimple is to break payments into easier-to-manage amounts without incurring any interest charges. Using a credit card lets people pay off purchases over time, but unless there is a promotional 0% APR offer, interest will accrue. With PayItSimple, there is no charge and no interest for the installment payments.
There is also the added perk of being able to collect credit card rewards when using PayItSimple in combination with a Visa or MasterCard that offers cash back, points or miles.
For merchants, giving customers the option of paying with PayItSimple potentially means more satisfied customers, an increase in sales, higher-ticket purchases, and more reasons for customers to follow through on a large purchase. It’s a way of offering free financing to customers without having to manage the payment plans themselves. They do, however, pay a processing fee for using the service. The merchant, not the customer using PayItSimple, absorbs all fees.
“Being fully integrated with Stripe means that more and more merchants will be offering PayItSimple to their customers,” said Benayoun.
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