Magento 2 Layaway Extension: 4 Methods To Manage Installments

• What Is Magento 2 Layaway Plan?

• Difference Between Layaway And Partial Payments Extension For Magento 2

• 4 Methods To Configure Magento 2 Partial Payment and Layaway

• Maximize Conversions With Smart Partial Payment Strategies

• Examples Of Successful Installment Plan Implementations

• Benefits Of Layaway Payments For Magento 2 Extension

• Troubleshooting Solutions For Partial Payment And Layaway Extension

• FAQs

• Summary

What Is Magento 2 Layaway Plan?

Magento 2 Layaway Extension allows customers to pay in installments.

Magento's preferred payment extension lets you attract more buyers and boost sales. It enables you to split payments or pay in installments over a specified period.

For Example, customers can pay for products in manageable parts over time instead of one full payment upfront.

Difference Between Layaway And Partial Payments Extension For Magento 2

Feature	Layaway Payment	Partial Payment
Product Delivery	After full payment is completed	After the initial down payment is completed
Merchant Holds Product	Yes, until full payment is made	No, the product is delivered after the down payment
Customer Receives Product	After the final installment is paid	After the down payment while paying the remaining installments for the products
Refunds	Usually, store credit or partial refund if the plan is canceled	Follows normal refund policy for products
Fees	May have layaway fees for holding products	Generally no additional fees beyond installment payments
Default Handling	Merchant keeps down payment and restocks products	Merchant follows normal policy for non-payment (e.g., collections)
Suitability	Higher-priced items, non-essential goods	Wide range of products, essential and non-essential goods

4 Methods To Configure Magento 2 Partial Payment and Layaway

Method 1: Display Layaway Details on Add To Cart

1. Navigate to your store's frontend.
2. Click on the Cart icon on the top right of your screen.
3. Select 'View and Edit Cart'.

4. Under 'Estimate Shipping and Tax', check the order summary's 'Subtotal' to find 'Layaway Fee' and 'Layaway Remaining'.

Note: You can display the same order details by navigating to 'My Account'.

Method 2: Manage Layaway Orders

1. Go to 'Layaway Orders' on your frontend.

2. Select any order and click on 'View Order'.

Method 3: Add Global Layaway Plans

1. Navigate to your Magento Admin panel.
2. Under Stores, select 'Configuration'.

3. Expand the 'Global Configurations' section.

4. Fill up all the necessary details. Some fields will have their fixed default values.

Method 4: Add Product Specific Layaway Plans

1. Under Catalog on the left panel, navigate to Fusion Backpack.

2. Under All Store Views, fill up every field of the general configuration.
3. Fill up every field of the 'Layaway' section, including:

• Individual Configuration
• Layaway Fee Configuration

Maximize Conversions With Smart Partial Payment Strategies

Strategy	Description	Benefits
Optimize Down Payment	Set an affordable down payment amount for customers to opt for installment plans.	Lowers the initial financial barrier and makes high-ticket items more accessible.
Offer Flexible Plans	Provide multiple installment options with varying durations and payment frequencies.	Caters to different customer preferences and budgets, increasing the likelihood of Magento conversions.
Highlight Savings	Display the cost savings or monthly installment amounts to emphasize affordability.	Helps customers understand the financial benefits and makes the purchase decision easier.
Simplify Checkout	Ensure a smooth and intuitive checkout process for customers choosing payment facilities.	Reduces friction and cart abandonment, leading to higher conversion rates.
Retarget Abandoners	Send targeted emails or notifications to customers with partial payment facilities.	Reminds potential buyers of the flexible payment option and reduces cart abandonment rates.

Examples Of Successful Installment Plan Implementations

Merchant	Product Category	Results
Furniture Store	High-end furniture and home décor	30% increase in average order value. 20% boost in overall sales after implementing layaway plans.
Electronics Retailer	Laptops, smartphones, and tablets	25% higher conversion rates for products offering installment options compared to those without.
Jewelry Store	Fine jewelry and luxury watches	40% of total sales generated through partial payment plans. 15% increase in customer loyalty.
Outdoor Equipment Store	Camping gear, hiking equipment, and bicycles	35% growth in sales of high-ticket items over $500 after introducing installment options.
Appliance Retailer	Refrigerators, washing machines, and dishwashers	28% reduction in cart abandonment rates. 18% improvement in customer satisfaction scores.

Benefits Of Layaway Payments For Magento 2 Extension

1. Clear Communication of Terms and Conditions

Transparency builds trust and reduces confusion or disputes related to installment payments. Display layaway terms prominently on product pages, checkout, and customer account sections. Use plain language and provide examples for clarity. Implement clear terms and conditions from the start and update them as needed.

2. Flexible and Customizable Installment Plans

Flexibility caters to diverse customer needs and preferences. It increases the likelihood of using the layaway option. Analyze your shared product catalog and customer segments to determine the installment plans. Configure the extension to offer multiple installment options based on the following:

• Product price ranges
• Categories
• Customer groups

3. Reasonable Layaway Fees

Reasonable fees encourage customers to use the layaway option. It helps the merchant to cover processing costs. Set layaway fees as a small percentage of the order total or a fixed amount. Review and adjust layaway fees on market trends, competitor analysis, and customer feedback.

For Example, you can cover administrative costs without being excessive.

4. Strategic Enablement for Key Product Categories

Focus on key categories to maximize the impact of the layaway extension on sales and revenue. Identify high-value, high-ticket, or frequently purchased product categories. Partial payments extension provides strategic product categories during the initial Magento setup.

For Example, a jewelry store might offer layaway on engagement rings. They can do this 6-12 months before peak proposal seasons (such as holidays and Valentine's Day). This results in a 50% increase in high-value ring sales.

Identify key product categories, such as:

• Sales Data Analysis: Identify high-margin products with low conversion rates for layaway options.

Example: Premium sofas with high margins but low sales volumes.

• Seasonal Trends: Offer layaway on seasonal items well in advance.

Example: Winter coats promoted in summer months.

• Competitor Analysis: Look at categories competitors promote with installment plans.

Example: Smartphones offered on installment plans by competitors.

5. User-Friendly Layaway Management Interface

A user-friendly interface empowers customers to manage their installment payments easily. It reduces support inquiries and increases customer satisfaction. Implement the layaway management interface to gather customer feedback for improvements. Customize the customer account dashboard scope to provide a clear overview of:

• Layaway orders
• Remaining balances
• Upcoming installments

For Example, you can display due dates and amounts on a calendar for easy reference. Send SMS or email reminders of upcoming installment payments a few days in advance. Use a progress bar to indicate the total amount paid versus the total amount due.

Troubleshooting Solutions For Partial Payment And Layaway Extension

Issue	Possible Cause	Solution
Layaway option not appearing on product or checkout pages	Extension not enabled or misconfigured in admin settings	Verify that the extension is enabled. Also, ensure settings are properly configured under Stores > Configuration > Sales > Layaway.
Down payment or installment amounts incorrect	Incorrect configuration of the down payment type (percentage or fixed) or interest rate	Double-check the extension settings for down payment calculation and interest rates. Ensure values are entered correctly.
Partial payments not updating order totals or remaining balance	Conflicts with third-party themes or extensions, or issues with payment gateway integration	Disable any conflicting extensions and recheck totals. Verify compatibility of layaway module with payment gateways and Magento versions.
Installment profiles not generating or sending to customers	Magento cron jobs not set up correctly for automated installment processing	Configure and test cron jobs according to extension documentation. Enable automated profile generation and customer notifications.
Shipping or tax amounts not split correctly between down payment and installments	Misconfiguration of shipping/tax distribution settings	Review extension settings for distributing shipping table rates. Check taxes between the initial down payment and the remaining installments.
Partial payment options not available for specific customer groups	Customer group restrictions enabled in extension settings	Modify customer group settings in admin. Allow or restrict layaway options for desired customer segments.
Guest checkout not working with partial payments	Offline payment methods not supported for guest checkout	Enable offline payment methods like Magento Cash On Delivery. Ensure bank transfer for guest checkout functionality with the layaway extension.

FAQs

1. Can customers combine layaway with other discount offers?

Yes, the Magento 2 Layaway Extension typically allows customers to use [Magento coupon codes]https://www.mgt-commerce.com/tutorial/how-to-create-magento-2-coupon-codes/). They can also participate in sales while making partial payments. However, the specific rules can be configured by the store admin.

2. How does the extension handle refunds for partial payments?

Partial Payment Pro Extension usually processes refunds based on the store's refund policy. Admins can issue full or partial refunds for layaway orders through the admin panel.

3. Can I set different installment plans for various product categories?

Yes, Magento 2 Partial Payment Extension allows the admin to set the payment category. Pay for goods in installments for individual products. Configure different payment plans based on product categories or even price ranges.

4. What happens if a customer misses an installment payment?

Set up Magento Partial Payment Extension to set the down payment type as per the store's policy. For Example, send reminder emails, cancel the order, or allow a grace period for payment.

5. Can customers pay off their layaway balance early?

Most partial payment orders allow customers to pay their remaining balance any time. They can complete the purchase sooner than expected.

6. Does the layaway extension for Magento support various payment methods?

Magento 2 Partial Payment Module supports credit card payments and EMI payment options. It lets customers pay down payments and installments using their Magento payment method. Store owners can configure custom payment plans to suit different products and services.

7. Can I use Linux operating systems with development environments?

Yes. Using Magento 2 Partial Payment, you can sell products using the Linux operating system for development. Customers can pay down payment using Magento 2 Partial Payment.

Summary

Magento 2 Layaway Extension allows customers to make partial payments for their purchases. It helps you to:

• ‘Buy now pay later’ for products in installments.

• Get access to credit card payments and EMI options.

• Leverage one payment system to pay for the price of the product.

• Use standard extension features to pay a part payment for the number of installments.

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