How can a payment platform offer installments to its merchants?

Split-payment providers are connected as payment methods and shown at checkout per market, while merchant-run plans need scheduled charges. A branded checkout covers the first case and a subscription engine the second.

Two kinds of installments

Split payments offered by a provider, such as pay in three or four, where the provider pays the merchant upfront and collects from the customer. And merchant-run plans, where the merchant itself charges the customer over time, often for higher amounts or longer terms. The two need different plumbing.

Provider installments

• Connect the installment providers active in each market as payment methods.
• Show them in the hosted checkout, with the eligibility rules the provider sets (amount range, country).
• Settle and reconcile their payouts like any other provider.

Merchant-run plans

• Store the customer's credential with consent for scheduled charges.
• Create the schedule from the order: amount, number of installments, dates.
• Charge each installment as a merchant-initiated transaction, with retries on failure and alerts when a plan goes bad.

Choosing for merchants

Provider installments move the credit risk away from the merchant but cost a percentage of the sale. Merchant-run plans keep the margin but need the subscription engine to run them. Operators that offer both let merchants pick per product and market, and see both in one reporting.