The rise of instalment payments in European e-commerce

The rise of instalment payments in European e-commerce

The growth of e-commerce in Europe has brought a structural shift in consumer behaviour. Payment flexibility has ceased to be a differentiator and has become an essential requirement across many sectors. In particular, the Buy Now, Pay Later (BNPL) model and instalment financing solutions have been gaining strong traction in markets such as Portugal, Spain and France.

The European economic context, marked by higher price sensitivity and increased household budget management pressure, has accelerated the adoption of these solutions. In Portugal, for example, BNPL penetration has doubled in a very short period of time, reflecting a clear trend: consumers want to buy now and pay in a way that fits their financial reality.

This scenario forces e-commerce businesses to rethink checkout as a critical conversion point. The absence of flexible payment options can lead to cart abandonment, especially for average order values above €50 or €80.

BNPL as a conversion driver at checkout

Instalment payment solutions are not only about facilitating purchases. They directly impact key performance metrics: conversion rate, average order value, and cart abandonment reduction.

By integrating options such as 3 interest-free instalments or mid-term financing, merchants remove friction at the decisive moment of purchase. This effect is particularly relevant in sectors such as fashion, electronics, beauty and lifestyle.

At the same time, the merchant still receives the full order value immediately, transferring credit risk to the BNPL provider.

Quick comparison of the main BNPL solutions in Europe

The European market includes several relevant players, each with different positioning. Below is a structured overview of the main e-commerce payment solutions.

• SeQura – Flexible AI-powered payments, strong in conversion and retention
• Klarna – Full ecosystem with app, cashback and deferred payments
• PayPal Pay Later – Simple integration and strong consumer trust
• Scalapay – Specialised in 3 or 4 instalments for fashion and lifestyle
• Cofidis Pay – Financing up to 12 months for mid/high-value baskets
• Cetelem – Regulated financing for very high-ticket purchases
• Eupago – Portuguese solution with API integration and local support

SeQura: payment technology and conversion growth

SeQura positions itself as a growth platform for e-commerce. Beyond instalment payments, it integrates post-purchase features, loyalty systems and consumer behaviour analytics.

In Portugal, it offers three main models: 3 interest-free payments, flexible plans from 6 to 24 months, and pay-after-delivery options. This approach allows adaptation to different consumer profiles and product types.

The impact on e-commerce performance is significant, with reported increases in average order value and conversion rates, especially in competitive sectors.

Klarna: financial ecosystem and user experience

Klarna has evolved from a payment solution into a full digital financial ecosystem. Users can manage orders, payments and returns within a single application.

For merchants, it represents both a conversion and branding tool. The checkout becomes smoother and significantly reduces purchase hesitation.

However, this strong ecosystem integration may reduce direct merchant control over the checkout experience.

PayPal Pay Later: trust and global reach

PayPal maintains a strong competitive advantage: consumer trust. Its instalment solution allows purchases to be split into 3, 6, 12 or 24 months, depending on market and eligibility.

The main advantage is instant approval and transaction security. However, part of the flow may redirect users to the PayPal environment, slightly altering the checkout experience.

Scalapay: focus on fashion and low-ticket purchases

Scalapay is widely used in fashion, beauty and lifestyle e-commerce. Its 3 or 4 instalment model fits lower-value purchases well.

The simplicity of the model and omnichannel integration make it highly effective for both digital and physical retail.

Cofidis Pay and Cetelem: structured financing

When average order value increases, solutions such as Cofidis Pay and Cetelem become more relevant. Cofidis Pay enables payments up to 12 months, while Cetelem offers financing up to 84 months with stricter credit assessment.

These models are particularly suitable for electronics, furniture or high-value goods.

Eupago and local solutions in Portugal

Eupago stands out as a Portuguese solution with simple integration into platforms such as Shopify, WooCommerce and Magento. Its proximity to the local market facilitates adoption by SMEs.

This type of solution is especially relevant for companies seeking to reduce technical complexity and accelerate alternative payment implementation.

Strategic impact of BNPL in e-commerce

BNPL is not just a payment trend. It is a strategic growth tool. Its impact extends across three key areas:

1. Increased checkout conversion rate
2. Higher average order value
3. Improved user experience

With the new European consumer credit directive expected to be transposed by 2026, the sector will move towards greater regulation and transparency, reinforcing the importance of selecting strong technology partners.

Integration and strategy with BYDAS

The selection and integration of BNPL solutions must be part of a broader conversion and user experience optimisation strategy. Proper implementation depends on UX, technical performance and SEO/SEM alignment.

In this context, BYDAS acts as a strategic partner in e-commerce and Shopify, helping brands integrate payment solutions that increase conversion and reduce checkout friction.

The adoption of BNPL solutions can significantly transform online store performance. BYDAS supports companies with full digital strategies and advanced technical integration in Shopify.