Splitit and AliExpress Bring ‘Pay After Delivery’ to the US

Installment payment platforms Splitit and AliExpress are bringing their “Pay After Delivery” offering to the United States.

The service, already offered throughout Europe, lets consumers pay for goods after delivery using a “custom-branded experience embedded in the AliExpress checkout flow,” the companies said in a news release Monday (Sept. 11).

“We are thrilled with the results seen from the rollout of our Pay After Delivery and installments service with AliExpress,” said Splitit CEO Nandan Sheth. 

“The demand from shoppers has been very positive, proving there is demand for a modern, simple way to allow consumers to pay only after the product has been delivered, improving the customer experience and building merchant loyalty,” he added. 

The two companies first joined forces in January, launching Pay After Delivery in Germany, France and Spain.

The expanded offering is happening as consumers continue to use installment payment tools such as buy now, pay later (BNPL) to cover the cost of goods.

PYMNTS Intelligence shows that 28% of consumers have used deferred payment plans such as BNPL or credit card installments in the last three months, usually for one of three reasons: The plans are convenient, offer a financial cushion and allow them to buy more.

“Deferred payment plans have been normalized for all types of purchases — and BNPL usage is generally a bit behind credit card installments,” PYMNTS wrote last week. “PYMNTS’ data finds that 67% of consumers used credit card installment plans to finance grocery purchases in the last three months, and 56% did the same with BNPL. We found similar trends for other product categories as well.”

The same research found that 47% of consumers have used BNPL to buy restaurant food in the previous three months, while 59% said the same of credit card installment plans.

“On the one hand, this is good news for restaurants, as it means budget-strapped consumers continue to dine out,” PYMNTS noted. “Yet the popularity of these payment methods, stemming from ongoing menu price inflation, is resulting in consumers dining out less frequently.”

Additional research finds that three-quarters of BNPL users say they are very or extremely satisfied with their BNPL options, a trend which does not vary substantially by provider. Low-income and younger consumers were less likely to say they were highly satisfied with their BNPL options, while millennials and higher-income consumers who were surveyed said they were largely satisfied with their options.

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