[Shopify] Is deferred payment possible? Explaining the types and how to implement them

When creating an e-commerce website with Shopify, one thing you may be wondering is what types of payments can be handled.

It's common to use credit cards, but there are also other methods such as "convenience store payment," "QR payment," and "mobile carrier payment," but can you also use "deferred payment," which has become increasingly popular recently?

Do you have any questions like this?

In this article, we will explain what "deferred payment" is, what are the benefits of introducing it, and more!

What is deferred payment?

Deferred payment is literally "paying later," so it is a service where the customer does not incur any money at the time of payment and can pay via bank transfer or convenience store payment .

The biggest benefit of introducing this system is that

• Customers who don't want to use credit cards at online stores can still shop at the store.
• Since it is a deferred payment service, you can pay even if you don't have the money "now."
• Since it is a deferred payment system, you don't have to worry about being scammed.

This is a service that offers great benefits to shoppers, such as:

Even if a suspicious product is sent, users can negotiate before paying, which makes the purchasing psychology of the product relatively light, and provides a strong sense of security.

In addition, there has been an increase in fraudulent use of credit cards in recent years. This is why the service is gaining attention and growing, even as users are concerned about such cases.

Just like credit cards, there is also a deferred payment service that allows for installment payments, so I think this is also very easy to use from the user's perspective.

Benefits for stores too

There are quite a few benefits for the store. The two most common benefits are

• No need to wait for payment
• No need to keep inventory

These are the two.

What this means is that in the case of "deferred payment," the job of collecting the paid amount from the user falls on the "payment company."

Users can only use the card after passing a credit check by the payment company, so sales are subject to a credit check similar to that of credit cards.

Therefore, the sale is confirmed the moment the payment is received!

For example, even if a user selects "convenience store payment," there is no need to wait for the payment at the convenience store. The sale is already confirmed, so you can send the item right away. The payment will be transferred from the settlement company to the EC business.

Even if users don't pay at convenience stores, the payment company will collect the receivables, so there is no risk of non-payment , which is a major advantage!

In addition, with "regular convenience store payment" that is not deferred payment, sales are not confirmed yet in the unpaid state, so you have to wait for the product to be shipped. In that case, the most troublesome thing is keeping inventory.

I have plans to sell it, but I haven't received the payment... so I can't send it... but there are other people who want it.

This could result in lost opportunities, but by using deferred payment you can say goodbye to that worry!

A similar case is refusal to accept "cash on delivery". Why don't they take it after buying it?! However, there are a certain number of people in the world who lack common sense, so EC businesses need to deal with such unreasonable people. However, with deferred payment, the debt collection can be left to the payment company , so it is quite easy on the mind.

Can it be used with shopify?

There are many different payment services available on Shopify!

Basically, anything other than a regular credit card can be used as an "external payment" by connecting it to your Shopify store.

External payments that can be used with Shopify must be supported by the payment service, and some of the supported services include "deferred payment."

(We'll talk about available payment services later!)

After signing a contract with a payment service provider, you can connect it to Shopify to start using it!

One thing to note is that if you use an external payment method, you will be charged an "external payment fee."

External payment fees vary depending on your Shopify plan, so you can expect them to be charged as follows:

• Basic Plan 2%
• Standard plan 1%
• Premium Plan 0.6%
• PLUS Plan 0.2%

The basic "2%" fee is quite an impact, so if your store is doing reasonably well, it will often be more profitable to operate with the standard plan, even taking into account the monthly fee. Just keep that in mind.

The installation itself is not difficult, and each company provides a detailed manual for connecting, so if you read the manual you will be able to connect in most cases.

Shopiry's postpaid service

Net Protections Inc.

Net Protections is the largest company in the postpaid service industry! The company name itself is not the name of the service, but they offer two types of services.

• NP Postpaid
• atone

Both are post-payment services offered by Net Protections, but there are two of them, so we will explain which one is better to use.

NP Postpaid

I think it will become the biggest service in this industry ! And that means users will have a high sense of security.

Customers can actually choose to pay at a convenience store or by bank transfer, so it's great that stores don't have to bear the risk of keeping stock while still allowing customers to pay at a convenience store!

Collection of payments is also handled by Net Protections, the operator of the service, so stores do not need to worry too much about unpaid issues.

The biggest advantage is that users can use the service immediately after SMS authentication without having to go through the trouble of "registering as a member." (Credit inquiries are apparently completed instantly with SMS authentication.)

You can also register as a member, and if you do, you will receive points, which is a subtle benefit.

However, payment can only be made in one lump sum; installment payments are not supported.

atone

The operator is Net Protections, the same company that operates NP Pay Later.

It's more geared towards "light users" than NP Pay Later, so it's easy to get addicted to sites like this that target young women!

The payment method for deferred payment is similar, and points shared with NP deferred payment can also be accumulated, so it seems that the points can also be used for discounts.

A unique feature of the service is that it has a smartphone app, from which you can immediately check your usage details and remaining credit limit.

And the biggest feature is that users are billed once a month.

With NP Pay Later, you receive a bill every time you shop, but with atone, you receive a lump sum bill at the end of the month. However, the monthly limit is 50,000 yen, so it's not suitable for high-value items!

It's a payment service that can be used safely by people who don't have credit cards, or who have credit cards but don't want to use them, so it's a good payment service to have on hand as a way to expand your user base. The fees are also low.

It seems that the credit rating is based on a different credit score than that of credit cards.

paidy

If you search for a post-payment service that can be used with Shopify, this is the service that comes up first.

The features that can be used are similar to "NP Pay Later", but the biggest advantage of this service is that it also supports installment payments .

As a user, you do not need to register as a member; you can start using the service immediately with just SMS authentication!

In addition, the commission for affiliated stores is 3.5%, and there is no monthly charge.

If you start selling a lot, NP Postpaid will win slightly in terms of commission, but if you want to reduce the commission with NP, you will have to pay a monthly fee, so I think it's a good idea to take that into consideration when deciding which to introduce.

GMO Epsilon (Postpaid)

It may be less well known than the two companies mentioned above, but if you use "GMO Epsilon" for external payments, this may be an option.

By signing a contract with GMO Epsilon, you can enjoy a variety of services such as QR payment, mobile carrier payment, regular convenience store payment, and automated bank transfer, so there is an advantage to signing a contract with one external payment company, as you can handle everything at once.

Shopiry allows you to set up many external payment methods, but the sales revenue is spread out over a wide area, making management a lot of work.

One of the benefits of GMO Epsilon is that you can use a variety of services at once.

summary

What are the disadvantages?

Even after reading this far, it seems that the disadvantages have not been explained very well to either users or stores, so are there really any disadvantages?

That being said, there are no major disadvantages for either party .

• Debt collection will be handled by the settlement company.
• They also handle credit management
• No need to worry about not receiving your sales
• Easy for users to use

Even when written down again, the good thing is that there aren't many disadvantages.

However, since credit information is attached to individuals, those who cannot apply for a credit card tend to have a hard time passing the screening. However, some companies may use information other than the credit card credit information, which increases the range of payments. There is no need to collect debts, so there is nothing to be afraid of.

When operating an e-commerce site, it is quite important to have a variety of payment methods available!

There are many people in the world who don't want to use credit cards or don't have them, so I think it's a good idea to increase your options to prevent losing sales opportunities!