The Scalapay payment system enters the travel world

Simone Mancini

The trend is buying online and not just basic necessities. This macro-trend has been the driving force behind the creation of e-commerce platforms but also of start-ups such as the Italian Scalapay, born in 2019, leader in Italy with the “buy now, pay later” payment system, the innovative formula that allows you to purchase goods and services by deferring the payment in 3 installments without interest for the customer. The start-up, which currently operates mainly for “pleasant purchases”, from fashion to cosmetics, from home products, for children and sports, is growing very quickly in Italy and in Europe and intends to reach by the end of the year the 250/300 collaborators from the current 120.

Speaking of 2020, analyzing its performance, Scalapay also saw the creation of its own community, where on the one hand companies have increased turnover and average receipt, on the other consumers have appreciated the multi-channel approach, the ease of the process and the customer service by rewarding the service with 4.9 on Trustpilot, one of the most influential review platforms.

The Italians who have so far benefited from the Scalapay financing system have been for l’80% aged between 18 and 45, 60% women, and 64% repeated the purchase within three months. It should be noted that credit card issues have decreased and that about 30% of the cards issued in Italy are prepaid, a system supported by Scalapa

The opportunity for customers to defer payment in 3 interest-free installments it is a lever applicable in various fields. Strong in a team young and dynamic, coming from international experiences in finance, technology and travel, Scalapay has decided to introduce this innovative method also in the travel sector.

The BNPL (Buy Now, Pay Later) formula has economic but also psychological implications: it is not based only on managing your monthly budget but also on the perception of what you can actually grant yourself without feeling frustration or guilt. Always on the emotional level, during the pandemic various surveys found that one of the experiences people missed most was traveling. The propensity to travel is not subject to fashions, it is innate to man. And if you can unhinge some obstacles, even better. For example, a braking component is normally the disbursement at the time of booking, well before the actual use of the experience; being able to defer the cost, without interest, encourages the purchase.

Comment Simone Mancini, ceo Scalapay, with many years of experience in e-commerce business and, most recently, in an Australian fintech: “Together with Johnny Mitrevski, CTO Scalapay, we launched our service with the intention of investing in a project that would support independent merchants and retailers. Scalapay was born as a payment method that allows them to increase their average receipt, their conversions and, also, to acquire new customers or, alternatively, to allow current ones to buy more. The service was born from the intention of wanting to find a way to allow the end customer to make pleasant purchases, avoiding too high an impact on their monthly budget. The reason that led us to want to invest in the travel sector is very simple: the products and services offered by this sector are, in fact, among the most requested by our community, those considered, so to speak, among the most pleasant in absolute”.

Furthermore, recently Scalapay conducted a survey from its community of users made up of hundreds of thousands of people, asking specific questions about travel and holidays. It first emerged that respondents said they were willing to buy transport, accommodation, packages, but also experiences such as spas, amusement parks, entrances to museums and sports activities.

96.1% would travel more often if they could defer payment, 99.5% would like to pay in three interest-free installments, and 87.6% would allow themselves premium options, such as superior room accommodation.

66.8% of respondents make two trips a year, 61.2% prefer seaside destinations and 21% prefer cities. For 56.7% the average duration varies from 4 to 7 days per trip and for 57.7% the average budget reaches 1,500 euros per trip. 45.9% move with their family, 35.6% move as a couple.

According to an analysis carried out by Kaleido Intelligence, digital purchases ‘Buy Now, Pay Later’ will represent 15-30% of the total by 2025, and 27% of the interviewees by Euromonitor International would like to pay in installments. For Mc Kinsey “in 2020 the brands experienced digital growth equal to that of the last 10 years in 3 months”.

In this panorama it fits with excellent prospects for the start-up Scalapay, which considers travel a strategic sector.

Declare Matteo Ciccalè, sales director Scalapay and a well-known name in the travel world thanks to his experiences in Booking, Amadeus and Starwood: We operate in the travel sector with three clear objectives, the first of which is to increase the knowledge of the ‘Buy Now, Pay Later’ consumer trend in the travel industry. At the same time, start collaborating with qualified partners in the sector with an initial focus on online sales and progressively also off-line in the various segments: hotel / non-hotel, tour operators and aggregators, transport, travel agencies with online sales, museums, parks, spas and activities. We also want to position ourselves as a marketing engine for our future travel partners in the Millennials & Generation basin Z but not only, as an innovative payment system and as commerce experts. “.