M.Video-Eldorado has launched its own buy-now-pay-later service for purchases in the retailer's websites and mobile applications. The product, operated by subsidiary Direct Credit Centre, initially allows customers to split purchases worth up to RUB 20,000 into four equal payments over six weeks. Vedomosti reported the launch on August 29, 2025.

The instalment is not structured as a conventional bank loan, and the launch description said customers would not undergo a creditworthiness check. Users typically pay no interest in this model, while the merchant compensates the financing provider. The company planned to test different commission options before fixing the final commercial terms.

A bright electronics checkout table shows four equal coloured payment stages leading toward a smartphone confirmation screen
The service embeds four equal payments into the retailer's digital checkout rather than sending the customer to a separate lender.

Finance moves inside the checkout

An embedded instalment product can reduce the moment of friction between product selection and payment. Instead of completing a separate loan application, the buyer sees a short schedule inside the shopping journey. For a retailer of electronics, where ticket sizes often exceed a customer's immediate budget, that convenience can improve conversion and make accessory bundles more affordable.

The six-week term and RUB 20,000 ceiling keep the first version focused on relatively small purchases. This limits exposure while the operator measures repayment behaviour and customer demand. It also distinguishes the product from longer consumer loans used for expensive appliances. The company can later decide whether to raise limits, extend terms or offer the service to outside merchants.

The initial customer proposition

  • Four equal payments spread over six weeks.
  • A purchase limit of RUB 20,000 at launch.
  • Availability through the retailer's websites and applications.
  • No conventional credit application or stated interest charge for the buyer.

The apparent simplicity hides a complex operating process. The service must identify the user, prevent fraud, schedule collections, handle refunds and communicate missed payments. It must also coordinate with the retailer's order system so that cancellations and partial returns correctly change the remaining instalments.

The merchant pays for conversion

When the customer pays no interest, the seller usually funds the service through a fee. The business case therefore compares incremental sales and margin with financing cost, fraud, defaults and administration. A high approval rate can raise turnover but also expose the provider to weak accounts; excessive rejection protects risk metrics but provides little value at checkout.

M.Video-Eldorado said the final commission would be determined after pilots. Testing is appropriate because product categories have different margins and return rates. A fee that works for accessories may be uneconomic for heavily discounted hardware. The operator needs rules that reflect both customer risk and the economics of the underlying basket.

Metrics that will determine expansion

  1. Checkout conversion compared with customers offered ordinary payment methods.
  2. Average basket, product mix and gross profit after the merchant fee.
  3. On-time collection, fraud and loss rates across customer groups.
  4. Refund accuracy and the volume of support requests.
  5. Repeat use without signs that customers are accumulating unsustainable obligations.

A retailer becomes a financial distributor

Owning the service gives the group more control over customer experience and transaction data than relying entirely on an outside bank. It can tailor offers to products and marketing campaigns, but it also assumes new responsibilities in data protection, collections, complaint handling and responsible product design.

The company said it eventually wanted to offer the service beyond its own stores. That would turn an internal conversion tool into a financial-technology business serving other merchants in Russia. External expansion would require competitive pricing, reliable interfaces and risk decisions that work without the advantage of the parent's own customer history.

The August launch is therefore a controlled market test. Four payments and a modest limit create an understandable starting point. Success will depend not on the number of instalments issued, but on profitable additional sales, accurate servicing and evidence that the convenience remains manageable for customers.