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You've done everything right. Your product photos look great, your copy is sharp, and someone has spent the last ten minutes scrolling through your store. They add to cart. They head to checkout.
Then the total appears.
And just like that — gone. No purchase. No message. Just a customer who quietly closed the tab.
If this sounds familiar, you’re not alone. Studies show that nearly 70% of online shopping carts are abandoned before checkout, and price is one of the top reasons why. Nearly half of shoppers abandon because of unexpected costs that appear at checkout, and for high-ticket items, the total price alone can be enough to stop someone in their tracks.
But there's a simple way to change that conversation. And it doesn't take a discount or a flash sale. Just installments.
When customers can split a purchase into smaller payments over time, something shifts in how they think about buying. That $120 jacket stops feeling like a splurge and starts feeling like $30 a month. The psychological barrier shrinks, even though the value of the product hasn't changed at all.
Here's what that looks like in practice:
1. Fewer abandoned carts, more completed sales
Installment options reduce what marketers call "decision friction", the hesitation that happens when a price feels too high to commit to right now. Research by RBC Capital Markets found that offering Buy Now, Pay Later (BNPL) — one of the most popular forms of installment payment today — can increase retail conversion rates by 20–30%.
2. Customers gain flexibility, and feel better about buying
Installments change how a purchase feels. Instead of a moment of hesitation, "is this too much right now?", customers get to make a decision that feels considered, manageable, and on their terms.
J.D. Power's 2024 Buy Now Pay Later Satisfaction Study found that customer satisfaction with installment services rose significantly year over year, driven mainly by how easy and transparent the experience felt. And when customers feel good at checkout, that feeling attaches to your brand, not just the product.
3. More revenue, not just more transactions
Here's where it gets interesting for your bottom line. Installments don't just nudge customers to complete a purchase. They nudge them to buy more.
A peer-reviewed study published in the Journal of Marketing found that BNPL adoption drives both an increase in purchase likelihood and larger basket sizes, and the effect compounds over time. Separate research shows customers who pay in installments tend to go for the better model, the bigger bundle, the extra item they'd normally talk themselves out of.
4. You reach a whole new group of buyers
Installment options also bring in people who wanted what you sell but couldn't commit to the full price upfront. Brands are expanding to a wider group of customers without a single discount.
There's no one-size-fits-all here. Depending on who your customers are and how they shop, you'll want to offer the right kind of flexibility.
Credit Card Installments (Traditional)
Credit card installments is the classic option that customers trusted and are familiar with. Customers pay using their existing credit card and split the total into fixed monthly payments — usually supported directly by their bank. For customers who already hold a card, this is a comfortable and reliable path to purchase.
This works especially well for higher-ticket items where customers want a predictable repayment schedule over a longer period.
Buy Now, Pay Later (BNPL)
In recent years, BNPL has transformed how people pay in flexible installments, especially across Southeast Asia, where credit card ownership remains low. In countries like Indonesia, Vietnam, and Malaysia, credit card penetration sits well below 10%, and in Indonesia alone, it's as low as 2–3%.
Unlike traditional installment plans, many BNPL options come with faster approvals and lower barriers to entry — and some don't require a credit card at all. This has driven strong adoption across Thailand, Indonesia, Malaysia, Vietnam, and the Philippines, markets powered by large, mobile-first populations who are largely unserved by traditional banking.
For merchants in these markets, BNPL isn't just a nice payment option. It's the difference between reaching your full audience, or only a fraction of it.
Installments aren't just for large retailers with dedicated finance teams. Any business, regardless of size, can offer them today, and it's simpler than most merchants expect.
At Omise, we support both traditional credit card installments and BNPL across all our solutions. Whether you're using our API-based checkout or Payment Links+, our team will get you set up and take care of the rest.
Ready to Give Your Customers a Reason to Complete the Purchase? See what payment options are available for your business here.
Or talk to our team, if you'd like to talk through what works best for your business.
References
Ang, D., & Maesen, S. (2024, November 26). Research: How "buy now, pay later" is changing consumer spending. Harvard Business Review. https://hbr.org/2024/11/research-how-buy-now-pay-later-is-changing-consumer-spending
Baymard Institute. (2025). Cart abandonment rate statistics. https://baymard.com/lists/cart-abandonment-rate
Capital One Shopping Research. (2026, January 28). Buy now pay later statistics. https://capitaloneshopping.com/research/buy-now-pay-later-statistics/
J.D. Power. (2024, February 29). 2024 U.S. Buy Now Pay Later Satisfaction Study. https://www.jdpower.com/business/press-releases/2024-us-buy-now-pay-later-satisfaction-study
Maesen, S., & Ang, D. (2024). Buy now, pay later: Impact of installment payments on customer purchases. Journal of Marketing. https://journals.sagepub.com/doi/10.1177/00222429241282414
Nassauer, S. (2021, September 25). Retailers bid farewell to layaway, as shoppers embrace buy now, pay later options. CNBC. https://www.cnbc.com/2021/09/25/why-retailers-are-embracing-buy-now-pay-later-financing-services.html
Peel Insights. (n.d.). What is buy now pay later? https://www.peelinsights.com/post/what-is-buy-now-pay-later
PPRO. (2024, October 18). Credit card penetration in the Asia-Pacific region in 2023, by country [Graph]. In Statista. https://www.statista.com/statistics/1040602/apac-credit-card-penetration-by-country/
