Translation from original German article, English | Worldline magazine | interview Hannes Rogall, Head of ratenkauf by easyCredit, TeamBank
The interview - ratenkauf by easyCredit – it really can be this easy to pay in installments
TeamBank is the expert in installment loans at the Volksbanken and Raiffeisenbanken. The easyCredit product is very popular with customers and continues to be developed further. TeamBank has recently started offering simple, standardized installment purchase credit for online stores and points of sale (POS) under the name "ratenkauf by easyCredit." equensWorldline is providing the technical support. The editorial team at Worldline mag asked Hannes Rogall, Head of ratenkauf by easyCredit at TeamBank, about the processes, benefits, and goals.
Worldline mag: Mr. Rogall, TeamBank has seen great success in Germany with its easyCredit product, and in Austria too since 2008. That does not seem to be enough for you.
Hannes Rogall: It is the customers who decide, and they want customized solutions. In other words, they want their funds to be where they need them. That's why, in 2016, we developed ratenkauf by easyCredit, a new product aimed at customers who need fair, secure and, above all, immediate financing for their purchase without all the paperwork. It was conceived from the customer's point of view.
Worldline mag: Can you explain?
Hannes Rogall: With our new product ratenkauf by easyCredit, we offer financing wherever customers demand the service: when shopping online and also at the POS in store. And the process is as technically smooth, simple, and transparent as possible for the customer and secured against payment default for the retailer. Our product ratenkauf by easyCredit is the first part payment solution that incorporates a simple, standardized installment function for online and multichannel retailers.
Worldline mag: Sounds good, but how can it be implemented from a technical point of view?
Hannes Rogall: Installment purchase credit is a factoring solution and a common payment method in e-commerce. At the POS, we facilitate the installment purchase by connecting German POS network operators to our backend system. For this, we brought equensWorldline on board as a partner. As an expert in acceptance processing, the company has the necessary expertise to establish the connection to the German POS network operators and also offers a comprehensive service for payment processing at the POS.
Worldline mag: Which services do you use?
Hannes Rogall: As the interface between our TeamBank system and the network operations host, equensWorldline will provide us with its WL Non-Card Mobile Payments, through which the ratenkauf by easyCredit is processed for the consumer at the POS. To this end, the company will expand the WL Non-Card Mobile Payments functionality and provide appropriate test, quality assurance, and production environments, as well as ensure smooth operation through web-based support functions and a hotline.
Worldline mag: All of which guarantees fast processing for the customer?
Hannes Rogall: Yes. There are just three steps for the customer to pay with ratenkauf by easyCredit. First they select the items they wish to purchase and enter their details in our web application. Checks are immediately carried out online and the customer receives the acceptance and an installment purchase code on their smartphone by email or SMS. They then take this and the goods to the cashier. At the POS terminal, the code is entered and the customer's Girocard is read. The authenticity check at the POS terminal works by reconciling the bank details from the application and the Girocard. If this is successful, the customer receives a partial payment contract on the printed cash register slip, which they simply need to sign.
Worldline mag: Sounds easy for the customer.
Hannes Rogall: Yes, it is. We do without the usual PostIdent procedure and do not need any paperwork from the customer – either in e-commerce or at the POS. The customer can take the goods immediately or have them delivered the next day.
Worldline mag: How does the process benefit the retailer?
Hannes Rogall: The customer can continue with the installment purchase in the same media, so the risk of them abandoning the purchase is minimized. Because customers expect installment purchase to be included in the available payment methods. The retailer can thus better retain its customers and achieve more and higher sales. What's more, it does not need to hire sales people for financial consultations, which saves on personnel and financial resources. Another factor that is important to the retailer is that TeamBank bears the risk for payment defaults, because the new product is not a conventional loan, but rather the purchase of a receivable. Since the retailer does not need to keep any reserves for possible payment defaults, it also benefits from greater liquidity. As you can see, everyone benefits from the simplest part payment solution in Germany.
Worldline mag: Thank you for this interview.