Installments are a popular form of payment; they are common especially in Latin America.
When a shopper finalizes a transaction and they choose to pay in installments, the total payable amount is split up into a number of partial amounts, distributed over a period of time.
The shopper needs to honour each partial payment, i.e. each installment, within the given time frame, and until the total amount due has been reached.
On one hand, installments make it more appealing for shoppers to purchase goods and services: they can access the goods or services as soon as possible or even immediately after finalizing the purchase, whereas they can dilute and distribute the total cost over a set period of time.
On the other hand, they make it harder to reconcile and settle payments because they add complexity to the process.
This section covers installment payments from a business-oriented perspective; therefore, its main focus is the installment payment process.
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