How to combine card payment & direct debit
Created in 2009, Lokéo is France’s leading domestic appliance rental service. Inspired by subscription economy and the observation that consumers now prefer to pay for usage as oppose to ownership, the company rents high value electronic equipment and home appliances. SlimPay manages the complete payment process for all Lokéo’s customers and enables the company to combine payment methods.
As Lokeo’s average rental contract is 36 months, the company needed a suitable payment method to manage and process recurring payments and avoid churn. Credit card in stand-alone was not a suitable option, as the average lifetime of a credit card is 24 months.
SlimPay’s SEPA direct debit solution enables Lokeo to easily process recurring payments, without risking problems such as card expiration dates and limits. Furthermore, SlimPay allows the company to combine payment methods. Customer make a first payment by card and subsequent payments via SEPA.
“SlimPay’s payment solution enables us to combine SEPA Direct Debit and credit card payments. This is a perfect fit to secure goods delivery and recurring rental payments.”
Aymeric Salmon, Finance & System Director
How does Lokéo process and combine payment methods
SlimPay combines a first payment by card and direct debit payments. Lokeo’s customers authorise direct debit payments by electronically signing a legally binding mandate through communicating a 4-digit one time password received via text message on the company website. SlimPay’s payment page is customised to Lokeo’s graphic layout.
STEP 1 – Customer pays the first 2 months rental by card
STEP 2 – Client electronically signs a mandate to authorise direct debit
STEP 3 – Lokeo sends SlimPay the payment schedule via SlimPay’s API
STEP 4 – SlimPay prepares and executes the transactions, and manages R-transactions
STEP 5 – SlimPay’s reporting is automatically processed in Lokeo’s ERP
- 4 MN€ in revenue
- 20 000+ customers
- An average basket of €800
- 100% online