In the race for diversification, e-merchants are hitting the bull’s-eye to build customer loyalty and find new sources of profit. Indeed, faced with a juggernaut like Amazon which is firing all odds with its VOD service Amazon Prime Video, its Dash Button or its Pantry service which shakes up local trade see large distribution, competition must find new tracks to resist.
“Thumbs Up!” is coming slowly but surely.
It is perhaps for this reason that the Cdiscount brand is launching “Thumbs Up!” the microcredit service. For the moment, the start takes place in the greatest discretion, the communication being made only by email to customers who have paid for their purchases in 4X and who have not had a payment incident.
This method of financing, little known in France, initially allowed people often excluded from conventional credit, to borrow a small sum to carry out an important project with a repayment adapted to their situation.
Any resemblance to a credit would be fortuitous …
As Mr Steven of the Company said: “it is not because you have no money that we will not take it anyway”. Cdiscount and its financial partner Cream Lending Bank seem to want to take up the concept of microcredit, but without the “social” side. For this, they offer its selected customers (with an appetite for split payment), a credit of $ 200 to $ 1,500 repayable in 4X. Why only in 4X you will say to me, and well for a regulatory reason because with 3 monthly payments maximum, the regulation on the consumer credit, known under the name of law Scrivener 1, does not apply.
So for the e-merchant, this greatly simplifies the processing of the file: a RIB, an identity document and that’s it. No questionnaire on the resources and expenses of the borrower candidate, no calculation of the debt ratio or the remainder of the living, just a query of the Personal Credit Repayment Incident File (FICP) just in case.
Credit is as easy as a click of the mouse.
What about the consumer? As the “Thumbs Up!” website claims, simplicity prevails and brings microcredit into the era of impulse buying. This also surfs on these workarounds in the banking sector, perceived as restrictive and fussy, as the Nickel account subscribed at the tobacconist. Simplicity is the alpha and omega of modern consumption: “one click and it’s automatic”. However, simplicity comes at a cost with an interest rate close to 18%.
Microcredit not really discount.
An interest rate which can be problematic, even if the financing is on a very short term, for a fragile public, and perhaps at the gates of over-indebtedness. One thing is certain, for the merchant site the operation is very profitable because in addition to a loan with a rate close to the rate of wear (set by the Best Bank at 20.27% for Q2 2017), c is also the opportunity to finance purchases made on another commercial site.
This fervent clientele adept at promotions, easy purchases and split payments is likely to succumb to this siren song. Let us hope that this diversification and loyalty-building operation will be accompanied by great vigilance on the part of the distributor and its financial partner to avoid any deviations with disastrous consequences.