Oney and PayPlug launch a split payment solution for PrestaShop

Natixis' payment subsidiary, PayPlug, has strengthened its partnership with Oney, which is also part of the BPCE group. The two partners have developed a new fractional payment offer with the PrestaShop platform for creating and managing online shops. Called PrestaShop PayLater, the new module integrates Oney's Buy Now Pay Later solution. It aims to establish itself among European players in a fast-growing market.

FACTS

• PrestaShop Paylater is a solution for all small and medium-sized businesses and merchants managing their sales in PrestaShop. It is aimed at merchants who wish to accept split payments to facilitate payments from their end customers.

• It will initially be offered to the 15,000 European merchants who are already PayPlug customers in France and Italy, as well as to the 136,000 PrestaShop merchants in the two countries.

• PrestaShop Paylater allows to pay online purchases in 3 or 4 times over 60 or 90 days.

CHALLENGES

• Conquering the European BNPL market to compete with giants such as Klarna: PrestaShop PayLater will first be available in France and Italy, but is due to be extended to the whole of Europe in the coming months (in Spain, then Poland). This is also the ambition of the BPCE group with its subsidiary Oney. This European presence will not only enable it to benefit more widely from the growth of the market, but also to face up to players that are already very well established, such as Klarna, which recently arrived in France.

• Targeting small and medium-sized retailers. This is the positioning of PrestaShop, but also that of PayPlug; this common knowledge of this target will enable them to address a fast-growing segment, as it is traditionally less equipped with BNPL solutions than the largest merchants.

• A strategy of bringing together the payment and credit activities. Last September, the BPCE group announced the creation of its BPCE Digital & Payments division, which includes Oney and PayPlug. This is an approach that is still not very common and which makes fractional payments a full-fledged part of the payment activities. It should also be remembered that since its acquisition, BPCE has said that it wanted to make Oney its European digital bank, which is now confirmed by this new launch.

MARKET PERSPECTIVE

• A fast-growing market: according to a study by Kaleido Intelligence, cited by the three partners, the global fractional payment market quadrupled between 2018 and 2020 to reach 80 billion dollars. By 2025, it could triple to $250 billion worldwide. In Europe, usage is already high: 60% of Europeans have already used this payment method and one in four prefers to make purchases on a site that offers it.

• In France, the 3x 4x Oney solution has seen an increase in average shopping baskets of 20 to 70%.

• Oney has 7.6 million customers in 11 countries. The association it is promoting today with PayPlug and PrestaShop represents an alliance to give the three entities a chance to assert themselves on an ultra-competitive market, dominated in particular by giants such as Klarna.

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