LexinFintech Holdings Ltd, the online micro lending firm, on Friday announced that Fenqile, its e-commerce-driven installment finance platform, is teaming up with Burger King in a joint marketing campaign as part of its efforts to expand the use of installment payments.
With the booming pay-in-installment behavior in China, the campaign allows Burger King customers to use stored value card worth RMB 390 (USD 60), which can be bought with a discount of 28%, and later choose to pay for it with credit from different installment plans.
Increasingly, installment payments are shifting from the one-off purchase of bigger ticket items, to smaller purchases.
This is the first time that Burger King, one of the largest fast food hamburger chains in the world, has teamed up with a Chinese consumer finance company, as it explores new ways to engage customers and seeks to tap the huge market in China.
The partnership also marks Fenqile’s latest initiative to expand the use of installment payments from online to brick-and-mortar stores, to better serve its young customers.
Fenqile began as a platform selling computers, smartphones and other consumer electronics, and has been increasing offerings by adding additional product categories to meet the growing needs of its customers.
Customers can now buy a wide range of products on Fenqile, from cosmetics and personal care to plane and train tickets.
According to analysts, the use of installment payments is on the rise in China, and will continue to grow in the next few years. The trend is increasingly seen not just as a way to satisfy an urgent need, but also as a normal method of shopping, according to a report published by Lexin with support from its e-commerce partners including Apple, Dell, L’Oreal, and P&G.
Installment payments usage is shifting from a low-frequency form of consumption to a high-frequency form of routine consumption.
The annual average number of orders per user paid for by installments on Fenqile has increased in the past three years, to 11.2 in 2017, from 10.6 in 2016, and 7.2 in 2015, the company said.
The use of Installments are no longer limited to more costly consumer goods, such as computers and smartphones, but are increasingly involved in all aspects of life, such as travel and catering.
The joint campaign is supported by Lexin’s Hawkeye risk management engine, which will be in place to assess new customers’ creditworthiness.