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Are payments in four “free” installments more expensive?

Noa Moussa
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10:52 a.m., June 11, 2022

Purchasing power problems have pushed many French people to use split payment, a method that allows you to buy a product by paying for it in several installments. Driven by this enthusiasm, Apple this week released its “Pay Later” system for its customers, a so-called “free of charge” method which is, in reality, not always free.

This month, inflation passed the 5% mark. A figure that has prompted a third of French people to turn to split payment, which allows you to pay for a product in four instalments within 90 days. “The success of split payment is its speed, the fact that the response is immediate for the customer and for the merchant,” says Marc Lanvin, deputy general manager of Floa Bank. “It’s as simple as a one-time payment except the customer chooses to pay in four installments.”

Split payment will cost more

However, the split payment risks disinteresting the French in a few months. Purchasing power problems are the cause of many unpaid debts which push credit organizations to make this means paying. “As there is a little more risk of non-payment, establishments will restrict their acceptance grid a little bit and therefore free split payment may be less offered in the years to come”, explains Marc Lanvin.

And to prevent over-indebtedness from multiplying, the European Union will tighten the framework for these split payments.


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