For many D2C brands, there comes a time when website traffic is good, but order values stop growing. A customer may add a mid-range or premium product to the cart, see a total of ₹6,000 or ₹9,000, and then think twice about paying the full amount at once. Some will go for the cheaper product, while others will simply walk away without making the purchase.
Pay in 3 allows customers to spread the cost across 3 payments instead of paying the full amount at once. For brands, this can make it easier to sell higher-priced products while keeping the product price the same.
Why Shoppers Hesitate at Higher Prices
It’s not often that a shopper reaches checkout and leaves because they no longer want the product. In many cases, it’s the final price that makes them hesitate, especially when they have to pay the full amount at once. This can cause problems for D2C brands:
Lower Cart Conversions: A higher cart value can make the shopper rethink the purchase at the last moment. Some drop off the checkout page before making the payment.
COD Dependence: Many shoppers opt for Cash on Delivery (COD) when they don’t want to pay upfront. For brands, this can mean more Return to Origin (RTO) orders, with added shipping and handling costs.
Limited Credit Card Use: Credit cards have not yet been widely adopted in India. This means traditional credit-based EMI options may not work for a large section of online shoppers.
When customers have to pay the full amount upfront, they may delay the purchase or leave their cart. Giving them flexible payment options can make a higher-priced purchase easier to manage.
How Split Payments Make Bigger Purchases Easier
Through a Pay in 3 structure, we can show the product price differently on product detail pages (PDP) and cart summaries. Instead of one expense of ₹9,000, the customer can see a clear breakdown of ₹3,000 a month.
1. Makes Higher-Priced Products Easier to Buy
Discounts can cut into your margins and may not be the right fit for every brand. With a Pay in 3 option, customers can split the cost into three payments instead of paying the full amount at once. This makes the purchase easier to manage while allowing the brand to sell at its regular price.
2. Increases PDP to Cart and AOV Uplift
Showing a clear installment breakdown early on the PDP can make shoppers more comfortable choosing a mid-range or premium option. It can also encourage them to add related products to their cart, which can help increase the average order value (AOV).
3. Instant & Cardless EMI through UPI
Today’s shoppers want a simple checkout without paperwork or a credit card. A 3-part payment option lets them get approved digitally with basic mobile verification and complete the payment through UPI.
Where Pay in 3 Can Make a Difference
Adding zero-cost short-term EMIs brings real benefits to your storefront:
| E-Commerce Metric | Impact of Flexible Installment Options |
|---|---|
| PDP to Cart Uplift | 28% increase as early price visibility encourages shoppers to take action |
| AOV | 37% uplift by encouraging shoppers to pick premium items |
| Checkout Conversions | 25% boost by removing upfront payment friction |
| RTO Risk Reduction | Reduced below 2% by shifting orders away from risky COD options |
Making High-Value Purchases Easier with Snapmint
Addressing payment friction can help D2C brands drive more sales as they grow. Instead of asking shoppers to pay the full amount upfront, brands can let them split the cost into three equal monthly payments. This can make higher-priced products easier to afford, reduce drop-offs at checkout, and help brands maintain their margins.
Snapmint is India’s leading online EMI platform on UPI, powering 2,000+ D2C brands to offer seamless cardless EMI options of 3, 6 and 9 months. Snapmint boosts brands’ AOV, reduces RTO risks and enables a better customer experience with instant digital approvals and complete T+2 merchant settlements.
