Maximize every sale opportunity with point of sale financing

Furniture plays a crucial role in our lives, enhancing our spaces and reflecting our personal styles. In the past, purchasing big-ticket items like beds, couches, and desks required a visit to a physical store. However, with the growth of eCommerce, this opportunity is changing. Did you know that 81% of consumers now start their shopping journey online? The internet makes it easier for consumers to research, compare, and purchase products from anywhere. Alongside this shift, point of sale financing has also transitioned from traditional in-store options to online platforms.

Point of sale financing (POS financing), also known as checkout financing, consumer financing, micro-financing, or “buy now, pay later” (BNPL), offers significant benefits to both consumers and merchants. It serves as an alternative payment method, enabling consumers to avoid hefty credit card bills by providing financial solutions at the point of purchase. This method divides purchases into manageable payments, making it an ideal option for mid to high-value checkouts.

Opportunity for merchants with POS financing

Merchants who incorporate POS financing into their checkout process can offer several advantages to their customers:

• Positive customer experience
• Higher conversion rates
• Increase in average order values (AOVs)
• Wider customer base
• User-friendly experience

Consumers today prefer using their debit cards over credit cards due to high-interest rates, which can range from 18% to 29.9%. Excessive use of credit cards can negatively impact a consumer’s credit score. Point of sale financing provides a solution, eliminating friction for shoppers who may not qualify for personalized loans or prefer not to use credit cards. Since point of sale financing is a form of personal loan not linked to a credit card, it can help improve credit scores through consistent on-time payments.

Opportunity: rise in short-term installment loans

There has been a notable increase in short-term installment loans over the past 3-5 years. According to Visa’s chief economist, there is a “massive increase in alternative lending.” About 70% of purchase installment loans are short-term, typically lasting between 3 to 12 months. It’s no surprise that 74% of U.S. cardholders find installment plans helpful for budgeting, and 70% believe they reduce the stress of making a large purchase upfront. By offering point of sale financing, merchants can strengthen their relationships with customers.

Enhancing customer loyalty with POS financing

Offering point of sale financing isn’t just about increasing average order values; it’s also about building customer loyalty. When consumers are presented with flexible financing options at checkout, they feel valued and understood. This tailored shopping experience can significantly boost customer satisfaction, leading to repeat purchases and long-term loyalty. Moreover, merchants using an embedded lending platform can provide customers with a seamless and integrated financing experience, whether shopping online or in-store.

Seizing the opportunity with omnichannel retail financing

In today’s retail environment, customers expect a smooth shopping experience across all channels. By integrating embedded financing solutions, merchants can offer consistent and convenient payment options both online and in physical stores. This omnichannel lending approach ensures that customers can access financing whenever and wherever they shop, enhancing their overall experience. A well-implemented embedded finance platform enables customers to start their shopping journey online and complete it in-store, or vice versa, with ease.

Opportunity for growth with B2B financing

The opportunity for growth in B2B financing is immense, especially as more businesses seek white label POS systems and BNPL solutions to better serve their customers. These embedded lending networks provide merchants the ability to customize financing options to suit their brand and customer base. By offering white label BNPL solutions, businesses can provide a personalized checkout experience that encourages higher spending and builds brand loyalty. The demand for in-store finance options alongside ecommerce financing is rising, making omnichannel financing a crucial strategy for retailers aiming to stay competitive.

Selecting the right embedded finance platform

Choosing the right embedded finance platform is crucial for merchants who want to maximize the benefits of point of sale financing. A robust POS financing platform should offer:

• Multiple lender options to cater to diverse customer credit profiles
• Easy integration with existing systems for a seamless checkout process
• Flexible financing terms that align with customer needs and business goals
• Data security and compliance to protect customer information

By implementing a comprehensive embedded lending platform, merchants can offer a superior checkout experience that drives customer satisfaction and increases sales.

Benefits of implementing a white label BNPL solution

For businesses looking to enhance their brand identity and customer experience, implementing a white label BNPL solution can be transformative. By offering buy now, pay later options under their branding, merchants can:

• Build stronger brand recognition with a cohesive shopping experience
• Increase customer trust through familiar and branded payment solutions
• Customize financing options to better meet their target market’s needs

A white label BNPL system allows retailers to maintain control over customer interactions while providing the flexible financing options that shoppers are increasingly seeking. This can lead to higher customer retention rates and increased sales opportunities.

The growing importance of in-store financing

While eCommerce continues to grow, in-store shopping remains a significant part of the retail landscape. Offering in-store financing options is crucial for merchants who want to provide a complete omnichannel experience. In-store financing enables customers to make immediate purchases without the upfront financial burden. It also helps merchants capture sales that might otherwise be lost due to high ticket prices. By incorporating embedded financing solutions into physical stores, retailers can offer the same convenient payment options found online, ensuring a seamless shopping experience across all touchpoints.

Conclusion: maximizing every sale opportunity with POS financing

The rise of point of sale financing presents a significant opportunity for both consumers and merchants. By offering flexible and personalized financing options, merchants can enhance the shopping experience, increase average order values, and foster customer loyalty. Whether through embedded financing networks, white label BNPL solutions, or omnichannel lending strategies, businesses have the tools to meet the evolving needs of their customers. Implementing a robust POS financing platform allows retailers to not only maximize every sale opportunity but also position themselves for sustained growth in a competitive market.