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How to Take Advantage of Pay-in-4 Payment Solutions

Written by Marketing Team

Looking for ways to grow your ecommerce store? There are many options available to make transactions smoother and more convenient for both customers and businesses. One such option is the Pay-in-4 payment solution.

By utilising Pay-in-4 payments, businesses can provide a flexible payment plan to customers, improving their retention rate and sales volume while preventing the risk of losing customers due to sticker shock. In this article, we’ll delve into the world of Pay-in-4 payments and explore how to implement and optimise them for your business.

Understanding Pay-in-4 Payment Solutions

Before diving into the topic, it’s important to establish a basic understanding of Pay-in-4 payment solutions and how they work. Essentially, Pay-in-4 payments allow customers to pay for purchases in four equal instalments spread out over a predetermined period of time, typically six weeks. This enables customers to make larger purchases without putting a significant dent in their bank account, while providing businesses with more sales opportunities and reduced payment processing fees. Credit limits vary and can reach £2,000.

That said, Pay-in-4 is better suited to lower value transactions around £500 or less. Higher value transactions require a different type of financing known as retail finance.

What are Pay-in-4 Payment Solutions?

Strictly speaking, Pay-in-4 payments refer to the specific payment plan format described above. However, the term is often used interchangeably with other similar payment plan options, especially in the world of e-commerce. Other payment solutions that can be considered Pay-in-4 include Pay-later, Buy now, pay later, and Deferred payments. While the specifics of each payment program may differ slightly, they all involve the customer paying for a purchase in instalments, rather than all at once.

Benefits of Pay-in-4 Payment Solutions

There are several benefits to utilising Pay-in-4 payment solutions for your business. Firstly, customers who may have been deterred from making a larger purchase due to its price tag can now do so with ease. This can help boost sales and revenue for your business, as well as help retain customers who may have otherwise been lost. Additionally, Pay-in-4 payment plans can help reduce the risk of late or missed payments. Since the payments are spread out over a period of time, customers are less likely to fall behind on their payments in comparison to a lump sum payment.

Another benefit of Pay-in-4 payment solutions is that they can help businesses attract new customers who might not have otherwise made a purchase. For example, customers who are on a tight budget or have limited funds may be more willing to make a purchase if they know they can spread out the payments over time. This can be especially beneficial for businesses selling higher-ticket items, such as furniture or electronics.

Furthermore, Pay-in-4 payment solutions can help businesses improve their cash flow. Since the payments are spread out over time, businesses can receive payment for their products or services sooner than they would with a traditional payment plan. This can help businesses manage their finances more effectively and reduce the risk of cash flow problems.

Popular Pay-in-4 Payment Providers

Several payment providers offer Pay-in-4 payment solutions, including Divido, Paypal and Afterpay. These providers offer a simple, user-friendly process for customers to pay in instalments and for businesses to implement the payment solutions onto their websites.

Divido is a white label retail finance provider that offers a range of solutions, including Pay-in-4 and Pay-in-3. Merchants can access one of Divido’s many lenders to offer their customers flexible payment options. The company also offers advanced soft-search to match customers to finance plans they can afford, as well as multi-market capabilities for merchants with Divido Connect.

Afterpay is another popular payment provider that offers a Pay-in-4 payment solution. Afterpay allows customers to pay for purchases in four interest-free instalments over a six-week period, and businesses can integrate Afterpay’s payment gateway into their website to offer this payment option to their customers. PayPal is one of the most popular payment providers in the world, and they offer a Pay-in-4 payment solution called “Pay in 4”. This solution allows customers to pay for purchases in four interest-free instalments over a six-week period. Businesses can easily add this payment option to their website by integrating with them.

Implementing Pay-in-4 Payment Solutions for Your Business

Assessing Your Business Needs

Want to retain more customers and reduce missed payments? Implementing Pay-in-4 payment solutions may be the right choice for your business. Pay-in-4 allows customers to split their payments into four instalments, making it easier for them to manage their finances while also increasing your sales.

Before implementing Pay-in-4, it’s important to assess your business’s needs and goals. Identify the areas where your business is struggling and determine whether Pay-in-4 can help address those issues. For example, if you’re dealing with a high rate of missed payments, Pay-in-4 can help reduce that risk by providing customers with a more manageable payment schedule.

Choosing the Right Pay-in-4 Payment Provider

Once you’ve determined that Pay-in-4 payment solutions are the right choice for your business, the next step is to choose the right provider. There are several factors to consider when selecting a provider, including ease of integration, customer experience, fees, quality of lender and fees.

When evaluating different providers, it’s important to carefully review their contract and terms of service. Make sure that the provider’s fees and policies align with your business’s needs and goals. Additionally, consider the customer experience and whether the provider offers features such as automated payment reminders and a user-friendly interface. Contact Divido if you’d like some help.

Integrating Pay-in-4 Payment Solutions into Your E-commerce Platform

The integration process for Pay-in-4 payment solutions is typically straightforward, as most providers offer plugins or extensions that can help streamline the process. It’s important to thoroughly test the integration before going live to ensure that everything is working properly and to prevent any potential issues down the road.

There are, however, circumstances when a bespoke integration is required. This is more typical if you’re a large merchant with a complicated offering. Bespoke integrations can take a lot longer, cost a lot more and be less predictable than a plug-in.

In either case, make sure to promote Pay-in-4 as a payment option to your customers once the integration is complete. Highlight the benefits of using Pay-in-4, such as the ability to split payments into manageable instalments. This can help increase customer loyalty and drive sales for your business.

Implementing Pay-in-4 payment solutions can be a smart choice for businesses looking to increase revenue and improve the customer experience. By assessing your business’s needs, choosing the right provider, and integrating Pay-in-4 into your e-commerce platform, you can offer a more flexible payment option that benefits both your business and your customers.

Marketing Pay-in-4 Payment Solutions to Your Customers

Promoting Pay-in-4 Payment Options on Your Website

Now that you’ve implemented Pay-in-4 payment solutions onto your website, it’s time to market the payment plan to your customers. One of the most effective ways to promote the option is to make it visually prominent on your website, such as featuring it in a banner or highlighting it as an option during the checkout process. This will ensure that customers are aware of the payment plan and can easily select it as an option when making a purchase.

But, simply featuring the Pay-in-4 payment option is not enough. You need to make sure that customers understand the benefits of using this payment plan. By breaking down payments into four smaller instalments, customers can better manage their budgets and make purchases that may have otherwise been out of reach. This is especially helpful for larger purchases, such as furniture or electronics, where customers may not have the full amount upfront.

Additionally, consider offering a discount or promotional deal for customers who use the Pay-in-4 payment option. This will not only incentivize customers to use the payment plan, but it will also help increase sales for your business.

Educating Customers on the Benefits of Pay-in-4 Payments

In addition to visual promotion, it’s important to educate customers on the benefits of Pay-in-4 payments. This can include providing detailed information on how the payment plan works and how it can help them budget their purchases. Consider creating a FAQ page or including an educational article on your website that explains the payment plan in detail.

By providing this information, customers will have a better understanding of how the Pay-in-4 payment plan works and how it can benefit them. They will feel more confident in using this payment option and may even recommend it to others.

Managing Pay-in-4 Payment Transactions

Tracking and Reconciling Pay-in-4 Payments

Once Pay-in-4 payment solutions have been implemented and marketed to your customers, it’s important to manage the payment transactions effectively. This includes tracking payments and reconciling them with your accounts, to prevent any discrepancies or potential issues with cash flow.

Handling Customer Inquiries and Disputes

As with any payment transaction, there may be situations where customers have inquiries or disputes about their payments. It’s important to have a system in place to handle these types of situations, to ensure that customers are satisfied with the process and that potential issues are resolved efficiently.

Ensuring Compliance with Pay-in-4 Payment Regulations

Compliance with local and national payment regulations is crucial when implementing Pay-in-4 payment solutions. Make sure to research and understand the relevant regulations and ensure that your business complies with them in order to avoid legal or financial issues down the line.


By implementing Pay-in-4 payment solutions into your business’s payment plan strategy, you can offer a flexible payment option to customers while increasing sales and revenue. By following the steps outlined in this article, you can effectively implement and market Pay-in-4 payments while ensuring that your business remains compliant with all regulations.

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