In a move aimed at making higher‑value retail purchases more accessible, UnionBank of the Philippines (UnionBank) has recently teamed up with IKEA Philippines to introduce a zero‑interest installment plan via its PayEasy payment platform.
Customers shopping at IKEA branches can now convert qualifying purchases into manageable monthly payments — aligning with evolving consumer expectations around flexible payments and financing options.
Flexible financing for furniture purchases at IKEA
The partnership offers two tiers of 0 % interest instalment plans: a three‑month term for purchases of PHP 10,000 or more, and a six‑month term for purchases of PHP 20,000 or more.
By turning what may otherwise be a single large expense into smaller, interest‑free monthly payments, UnionBank and IKEA help lower the barrier to buying furniture, home‑office sets or larger household items.
This type of offer taps into the growing trend of embedded financing at retail – where payment providers and banks work with merchants to deliver smoother checkout options that go beyond traditional one‑time payments. Shoppers benefit from more flexibility, while retailers like IKEA potentially boost conversion and average spend.
Strategic gains for bank and retailer
For UnionBank, the installment plan strengthens its credit‑card and PayEasy proposition, positioning it against fintech and BNPL (buy‑now‑pay‑later) competitors. By offering 0 % instalments, the bank enhances cardholder value and encourages usage for higher‑ticket purchases.
From IKEA’s perspective, providing flexible payment terms may entice shoppers who might otherwise delay or scale down a purchase. Furniture and home‑improvement contexts are ripe for instalment financing, given their relatively high price points and the fact that customers often plan upgrades or new‑home furnishing.
What consumers should keep in mind
While 0 % interest sounds appealing, consumers should ensure they understand the terms: check if their specific UnionBank card qualifies, ensure the PayEasy installment is appropriately activated, and be aware of monthly obligations and any late‑payment penalties. Even though there’s no interest, failure to pay on time may lead to fees or affect credit standing.
It would also be wise to consider whether stretching the purchase into installments aligns with one’s budget — just because the upfront payment is smaller doesn’t mean the total cost is negligible.
Make sure you factor in all costs (including potential returns or cancellations) and the impact on your monthly cash‑flow.
Moving forward
As flexible‑payment options continue to gain traction in the Philippines, offers like UnionBank’s 0 % installment plan at IKEA may become more commonplace. For now, shoppers at IKEA have a timely way to make large‑ticket purchases more manageable — provided they stay informed and pay responsibly.
