Interest-free Installment Payment Strategy for Retailers under Third Party Payment Platform

With the development of e-commerce, more and more people have opted for online shopping. At the same time, consumers' payment forms have also undergone tremendous changes. More and more people have opted for third-party payment platforms with installments and interest-free installments. The payment is advanced. Retailers partnering with third-party payment platforms to provide interest-free installment services are equivalent to providing an alternative price discount that can attract more consumers to purchase products to gain more profits. This article first analyzes the mode of operation of full payment, installment payment, and interest-free installment payment, and then constructs a retailer profit function to compare the retailer's profit before and after the interest-free installment payment. The results show that when consumers choose to use interest-free installment payments within a certain range, providing interest-free installment payment services can bring greater profits to retailers.