DivideBuy recently revealed the results of its partnership with Simba Sleep, as the firm seeks to evolve efficiency in the payment industry. 

We spoke to the LendTech company’s Head of Business Development James Bradley about the collaboration, what they discovered through the partnership and just how important it could be in terms of increasing engagement in the payment journey. 

Payment Expert: Can you tell us a little more about the partnership with and Simba and the unique payment style it implemented?

James Bradley: Having reviewed Simba from a distance for several months DivideBuy quickly recognised flaws with their previous IFC provider. Firstly there were some obvious barriers to market for consumers due to the traditional and very typical banking criteria imposed by the lender.

Seemingly small things like three years address history when targeting millennials instantly cuts you off to that demographic. Being the lender and tech provider meant we were able to remove these barriers from day 1 and leverage the technology to still responsibility asses a credit application. The result for Simba was we opened up more of the market up for them overnight.

Payment Expert: What are some of the benefits in terms of instalment payments in terms of user engagement? 

James Bradley: Being the lender and also the tech provider allowed us to leverage different modules of our platform to give a better journey for consumers before they had even considered credit. Our dynamic instalment calculator at product level allowed customers to instantly see how much the product would cost if they paid in instalments.

This simple but effective tool empowers those consumers who may not have been able to afford the product upfront today, to pay on their terms over time and for the retailer they have just turned a browser into a buyer

Payment Expert Are there any risks in terms of fraud when it comes to instalment payments and how do you navigate them? 

James Bradley: Balancing positive online customer experience and being confident that customers using multiple devices can access our services are who they say they are, can be tricky. A key way to design a seamless, secure digital journey is by leveraging technology and behaviour data to verify consumer identity and reduce fraud threats. We work with a number of external third parties to navigate this journey.

DivideBuy assumes fraud risk on orders processed through our platform, so the retailer is safe in the knowledge that when an order lands they can ship it and by improving the operational efficiency through digitisation, it eliminates manual referrals or interventions which is why we can grant credit decisions without any manual underwriting resulting in higher conversions than our competitors.

Payment Expert: What lessons can be learnt from this collaboration when it comes to Instalment payments in other sectors?

Explore everything that Interest-Free Credit can support. Every retailer has different goals and a different strategy on how to get there. Being the lender and the tech provider allows us to align more closely with a retailer’s strategy and to deliver the results they are looking for. Collaboration is key! Whether you’re looking to convert more site traffic, sell more big-ticket items, Interest-Free Credit supports this.

Payment Expert: Can you tell us any lessons learned from this trial run?

James Bradley: Try to immerse yourself in the retailer’s business. Try to understand what a good ROI looks like to them and be adaptable, measuring your success as you go