Four common mistakes when using deferred payments and how to avoid them

More and more consumers are choosing deferred payment methods (also known as BNPL – Buy Now, Pay Later) to finance their purchases in a convenient and flexible way. At the same time, many businesses are integrating them into their sales channels to adapt to their customers’ evolving preferences.

This payment option allows them to acquire products and services flexibly and comfortably, without having to worry about paying the full amount at the time of purchase.

According to the latest survey conducted by PaynoPain on “Payment Methods: The Final Decision” (2024), 33% of consumers have already used some form of deferred payment or BNPL, while 12% have not yet done so, but don’t rule it out in the future. In addition, 50.5% of users say they pay everything upfront, 14.5% finance major purchases, and 33.5% decide based on their financial situation at the time.

What are the risks of using deferred payments?

Although deferred payments offer numerous benefits, poor usage can lead to unexpected costs and financial difficulties. Not being properly informed about how they work, or managing them poorly, could result in a service that complicates rather than facilitates your purchases.

In this article, we highlight the four most common mistakes when using deferred payments – and how technology can help you avoid them.

4 common mistakes when using deferred payments and how to avoid them

1. Ignoring the cost of deferral

One of the most common and easiest mistakes to avoid is not reading the terms and conditions of the deferred payment service carefully. If you don’t pay close attention to the service you’re signing up for, you could be in for an unpleasant surprise in the form of interest charges and fees.

Nowadays, modern payment platforms provide the financing terms in easily accessible sections, where you can quickly find all the information you need; but it is essential that you actually read it.

2. Choosing unverified payment methods

Not all deferred payment options have the appropriate security certifications. That’s why it’s vital to choose regulated fintech solutions backed by recognised certifications. This is the only way to ensure the authenticity and reliability of the financing provider.

At PaynoPain, as a company providing payment solutions, we hold a Payment Institution Licence from the Bank of Spain and comply with the highest payment security standards, such as PCI DSS and EMV 3DS. With us, your transactions are fully protected.

3. Not taking advantage of automatic payment reminders

Missing an instalment can result in penalties or additional interest, which directly impacts your finances.

Digital payment platforms allow you to set reminders and automate payments, so you never miss a deadline. Making the most of these features helps you stay on schedule and keep your finances under control with no unpleasant surprises.

4. Not checking compatibility with your preferred payment methods

It’s important to make sure that deferred payments are compatible with your preferred payment methods. Otherwise, you simply won’t be able to use them. The most advanced technology solutions, such as those from PaynoPain, integrate BNPL with a wide range of available payment methods, offering greater flexibility and convenience.

Would you like to incorporate deferred payments into your business?

More convenience for your customers, more conversion for your ecommerce

Deferred payments offer multiple advantages for both businesses and consumers.

However, it’s essential that users are well informed about their terms and conditions. Reading the information carefully, especially around interest rates and payment limits, is key to avoiding unexpected charges.

Businesses, on the other hand, should consider incorporating deferred payments into their current payment strategy to make the purchasing process easier for their customers. To do so, it’s crucial to choose reliable payment providers and to establish clear policies for managing payments and returns.

At PaynoPain, we’ve been delivering innovative payment solutions for over 14 years to companies of all sizes and sectors. Our payment platform integrates multiple payment methods, such as BNPL and Bizum, adapting to the needs and preferences of your customers.

A payment gateway with everything your business needs

Virtual POS with BNPL and many more payment methods

If you want to offer your customers a more flexible and convenient way to pay, you need to include deferred payments among your available payment options.

Fill in the form and we’ll get in touch to offer the payment solution that best fits your needs.