Posted on 10/05/2011 at 14:41
Strategic alliance between Wirecard and RatePAY
Online installment payments as solution for mail order and supplement to existing payment methods.
The Wirecard Group and RatePAY, a subsidiary of the EOS Group which belongs to Otto Group, have agreed a far-reaching strategic alliance in order to give installment payments an even stronger foothold on the market as a key payment instrument for online purchases. Retailers benefit from a payment guarantee linked to the payment process.
In future, both companies will jointly offer RatePAY installment payments for the German market. RatePAY installment payments, which can be processed without using Deutsche Post’s Postident identification service, and can thus be processed online without changing media, opens up additional sales potential for mail order retailers by bringing higher conversion rates. In so doing, RatePAY is responsible for processing the purchase for Internet retailers, and thus the associated processes with the consumer. Wirecard Bank AG provides the requisite financing services, including the payment guarantee.
At the same time, online shop operators who already use Wirecard solutions can round off the range of payment methods they offer by adding RatePAY installment payments.
“Both RatePAY and Wirecard have extensive risk management expertise. Our competence in installment payments and process management is the perfect supplement to Wirecard Group’s experience in online payment processing. We are looking forward to working together,” commented RatePAY’s management director Miriam Wohlfarth.
Michael Brinkmann, EVP Partner Management for Wirecard AG noted: “Together with RatePAY, we offer our corporate customers both additional comfort when approaching customers, and also support, in particular, in developing additional sales potential and increasing liquidity. Retailers can approach totally new customer groups with installment payments.”
From traditional installment payments, those with a pre-payment, to zero-percent financing: there is a large range of financing models for bricks-and-mortar retailers. In contrast, in the past installment payments have not recorded particularly strong growth rates for online retail, as the Postident method that was needed led to a change of media, and thus often to the purchaser failing to complete the purchase. According to a study by the Handelsverband Deutschland (HDE) published in November 2010, purchases financed with installment payments in the eCommerce sector totaled just five percent.