Increase Your Revenue With Point Of Sale Financing

A common challenge that most online businesses face is the abandoned cart. While follow-up emails, abandoned cart discounts, or remarketing campaigns might recover some sales, many potential customers never return. Once that moment has passed, the possible sale—and the opportunity to build a lasting customer relationship—is often lost, impacting your revenue.

This trend has become more apparent during the COVID-19 pandemic, as many consumers cannot afford to pay the total upfront. As a result, sales drop, and so does your revenue.

Several factors contribute to abandoned carts, but a major one is the limited financing options available. Relying solely on credit card payments is insufficient in today’s financial climate, where interest rates and admin fees are increasingly unaffordable. Consumers are looking for more flexible, transparent, and affordable alternatives.

What is point-of-sale consumer financing?

Point-of-sale (POS) financing, or buy now, pay later, is an online financing option that allows consumers to purchase your products without paying the total amount upfront. Instead, they fill out a short application for an instant loan on the checkout page. Their details are vetted against a network of lenders, and once approved, they pay back the amount in affordable installments over a few months.

How does this increase your revenue as a merchant?

Visitors become customers

Imagine this scenario: You are browsing a store, adding items to your basket, only to find that the total price is higher than expected and that there are very limited financing options. In this case, the customer will likely leave without purchasing anything, and you will lose the sale.

But what if you allowed the customer to apply for a microloan within seconds and pay for the items in affordable and transparent monthly payments? The outcome would likely favor you. The customer would be more willing to complete the purchase and might even be enticed to buy higher-value products.

Merchants who partner with platforms like ChargeAfter see a 30% increase in overall sales and a 45% increase in average order value, helping to boost revenue.

Increased customer lifetime value

Customer lifetime value is one of the most critical metrics for any business. Providing your customers with a seamless and enjoyable experience through simple consumer financing options increases purchase frequency and average order value and builds brand loyalty. It’s a fact that retaining an existing customer is far more cost-effective than acquiring a new one.

Offering point-of-sale financing strengthens the relationship between you and your customers, leading to repeat purchases, higher order values, and increased revenue over time.

Higher approval rates

Many customers need help qualifying for traditional credit options, such as store or bank credit cards, due to their credit history, income, or existing debts. Traditional credit providers often approve only low-risk borrowers, meaning around 70% of applicants are turned away.

A multi-lender POS financing platform like ChargeAfter connects customers to a diverse network of prime, near-prime, and subprime lenders. If a prime lender rejects a customer, they’re automatically vetted by a network of near-prime or subprime lenders, increasing the chances of approval. This approach provides up to 85% approval rates, ensuring more customers can access financing.

How point-of-sale financing drives revenue growth

Point-of-sale financing helps increase sales and boosts your overall revenue by making purchases more accessible. The flexibility of buy now, pay later options encourages consumers to spend more, increasing their basket sizes. This financing model creates a more enjoyable shopping experience, leading to higher conversion rates.

Integrating POS financing into your checkout process enables customers to buy products they may have hesitated to purchase upfront. Offering in-store financing or online through an embedded lending platform can also capture more sales from a broader audience.

Omnichannel financing for consistent revenue

Today’s consumers expect a seamless experience, whether in-store or online. By offering omnichannel lending options through an embedded finance platform, you ensure that customers can access financing wherever they prefer to shop. This continuity improves customer satisfaction and increases the likelihood of repeat purchases, further boosting your revenue.

Whether it’s a white-label BNPL solution for your e-commerce store or a POS lending platform in-store, these solutions help you capture a larger share of the market, creating a consistent flow of sales across channels.

Expanding your revenue with embedded lending

An embedded lending network allows you to offer financing options directly within your online store or point-of-sale system. By incorporating a white-label POS system or BNPL white-label solution, you can provide customized, branded financing experiences that blend seamlessly with your customer journey. This type of embedded financing helps you maintain control over the customer experience while increasing your revenue by reducing cart abandonment and improving conversion rates.

Additionally, embedded finance solutions offer flexibility and scalability, making it easier to tailor financing options to meet customer needs across various shopping channels. Whether offering in-store financing or online options through an embedded lending platform, you can provide a smooth, integrated experience that encourages purchases and boosts overall revenue.

Conclusion: Maximize revenue through point-of-sale financing

Implementing POS financing is one of the most effective ways to increase revenue. By offering consumers flexible and accessible payment options, you reduce cart abandonment, increase conversion rates, and build stronger customer relationships. Whether through e-commerce financing, omnichannel financing, or embedded finance solutions, providing these alternatives helps create a frictionless shopping experience that drives sales and long-term customer loyalty.