A New Partnership Eliminates the Need for a Credit Card to Pay for Something on Installment

It’s between an Indonesia-based and Philippines-based startups.
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For many people, paying for something on installment or “gives” is unavoidable. Luckily, more merchants and establishments are making this option available, and not just through a credit card. 

A new payment solution was announced by Indonesian fintech (financial technology) platform Xendit through a partnership with the First Digital Finance Corporation (FDFC) and it’s product called BillEase. This PayLater platform will allow merchants to offer convenient and card-free installments to customers for a variety of their needs. 

This is relevant and groundbreaking in a country like the Philippines, where a huge majority of the population remains unbanked, and even less without access to financial instruments like credit cards.

How does PayLater work

Through Paylter, Xendit merchants that offer BillEase can now allow customers to pay for their purchases online on monthly installments and make payments through the app over a period of three, six, nine, or 12 months. The monthly interest rates vary between zero to 3.49 percent, which is still pretty competitive (aka cheap) compared to credit card finance charges. Merchants can also choose to offer zero percent annual percentage rate (APR) to their customers. For example, an P18,000 purchase would only cost the customer P2,500 over six months at zero percent APR.


Merchants that are already on the Xendit platform can simply as BillEase as a payment option with a few clicks. 

“By offering BillEase at checkout, merchants can give their customers the option to split the cost of their purchases into installments either monthly or bi-weekly with no hidden fees,” a news release from Xendit said.

The partnership with BillEase allows merchants to connect to Xendit’s API and enable BillEase’s payment products: Pay Later, which lets customers try the product and pay on their next pay day with no interest; Pay in Installments, which enable customers to enjoy fully-financed purchase and spread payments over time at a zero-to-low interest rate; and Pay with Down Payment, which allows customers to pay 1/3 upfront and pay the rest in installments.

Based in Indonesia, Xendit is a Y Combinator-backed fintech company that enables businesses to accept and send payments across multiple channels through API innovation. Manila-based FDFC, meanwhile, is the first company to launch an integrated installment payment solution for ecommerce merchants in the Philippines that does not require customers to sign up for a credit card or debit card. 

"Shoppers are increasingly looking for alternative ways to pay, and merchants who offer flexible payment options can rapidly improve their conversion rates and increase average order value," said Georg Steiger, Co-founder and CEO of FDFC. "We're excited to partner with Xendit to help Filipino merchants grow more by removing unnecessary challenges customers face at checkout, especially for those who are unable to use credit and debit cards.”

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"At Xendit, we aim to give our merchants the options needed to help their business grow by offering all types of payment methods," said Yang Yang Zhang, Managing Director of Xendit Philippines. "Partnering with BillEase is crucial as the demand for installment solutions has grown in recent years, partly fueled by the pandemic. Additionally, merchants also see a huge demand from their consumers for this type of payment option. That's why we’re excited to bring our PayLater solution to online retailers in the country."

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Paul John Caña
Associate Editor, Esquire Philippines
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