Author: chargeafterdev

Technology has become such a pivotal part of our daily lives it’s hard to imagine what we did without our smartphones and laptops. While these innovative bits of technology are practically everywhere we turn and supply is certainly plentiful, they still come with quite a hefty price tag. Keeping up with the latest devices can take its toll on finances, but it’s just something a consumer ‘has got to have’. In this day and age, it is not uncommon to see consumers maxing out their credit cards to get their hands on the latest iPhones. The price and need for these types of devices have turned into a dangerous game that usually leaves the consumer on the losing end. Not only are they racking up debt thanks to interest and additional fees, but they usually wind up paying for these devices long after the next-generation model drops in-store. The goal should not be to bankrupt your customer base, but rather to give them a flexible financing solution that is affordable and doesn’t take years to pay off either. This is where Buy Now, Pay Later electronic financing has the upper hand. 

How Does Buy Now Pay Later Electronic Financing Compare To A Credit Card? 

You may just be wondering what the difference is between offering your consumers BNPL and credit cards. Yes, they both fall under the financing umbrella, but the difference is that with BNPL, affordability is key. 

For example, your customer is looking to purchase the new MacBook Pro. They opt for all the extras like a new mouse, earphones, and charging cable. Once they have added everything to the cart, they are met with a total of around $2,100. They decide to swipe their credit card, which has a limit of $8,000 and already has a balance of $2,400 on it. After checking out, your customer now has a credit card balance of $4,500 and their credit utilization is at 56%!

The problem with this method of payment from the customer’s perspective is that if for any reason an emergency comes up, they might not have the means to cover them. It’s also unlikely that the customer is going to pay off their entire credit card balance in one go, which means they will have high-interest payments in store for them.

Buy Now Pay Later, also known as Point Of Sale financing works a little differently. Instead of swiping a credit card for the same amount, a customer can select the BNPL payment option and apply for electronics financing. Once they check out there is no charge added to their credit card. Instead, the total amount is broken down into affordable payments over 12 months with a very low-interest rate. Some merchants may even offer a 0% APR if the outstanding balance is paid back in full within 6-12 months.

This means their credit utilization isn’t affected, leaving them with more available money in the event of an emergency and they also avoid the 25% APR or more that is usually charged when using a credit card!

The Other Benefits Of Offering BNPL Financing For Electronics 

One of the many reasons more and more merchants are offering POS consumer financing is that it helps customers shop and spend responsibly without leaving them with spiraling debt. After all, a customer who can’t afford your products due to their existing debts isn’t going to help your sales either. Plus, when a customer leaves your store penniless after a shop, it can affect the entire shopping experience negatively and they will more than likely not want to return. 

Giving your customers more affordable options and flexibility helps to create a positive feeling when they think of your brand. They’ll know where to shop the next time they are looking for a new camera or phone. 

Another benefit is that you do not have to handle any of the payment terms either. BNPL platforms like ChargeAfter do the heavy lifting for you. And you as the merchant get the total amount as and when the sale is completed! 

ChargeAfter’s technology can also be seamlessly integrated into your existing systems without having to redevelop your entire platform. Chargefter offers Buy Now Pay Later solutions for Magento, Magento 2, Shopify, Woocommerce, Hybris, Big Commerce and more!

The Bottom Line

It’s clear to see why BNPL is making waves in the industry. While both customers using either payment option will get their laptop at the end of the day, the customer who opts for BNPL electronics financing also avoids the many pitfalls of increased credit card debt, inflated interest rates, and will still have enough credit saved on their cards for unforeseen emergency expenses. 

The Covid-19 pandemic has impacted most industries that exist today, with the wedding space being hit the hardest, an industry that was valued at $74 billion in the US alone. According to surveys, 4% of the 450,000 weddings planned for March 2020 were canceled. While that seems like a small number, it has had a severe impact on wedding vendors. With large gatherings banned and strict protocols in place, many wedding vendors have to adapt to the changing times to avoid shutting their doors for good.

The good news is that there is a light at the end of the tunnel for the wedding industry. Many brides and grooms are still planning their weddings albeit further into the future or cut down to micro ceremonies. The demand is clearly still present for the industry of love, but it may just look a little different. 

The key is to meet the demands of the consumer and here is how offering Buy Now Pay Later (BNPL) financing from ChargeAfter can help:

A Future Without Crippling Debt

Planning a wedding does not come cheap and with the ‘new expectations’ created by popular social platforms like Instagram and Pinterest, some brides and grooms go to extreme lengths to plan their perfect day to ensure it is just as picture-perfect as portrayed in the many lavish and filtered images circulating these social platforms. Feeling this pressure, engaged couples often turn to interest heavy lines of credits and loans to afford these price tags, which can take years to pay back. A new marriage formed on debt can be extremely stressful for both parties. The hefty interest rates bump up the total cost of the loan meaning that some couples land up paying far more for their wedding than the actual cost!

While the pandemic has forced couples to reevaluate their priorities for the big day, there are still many that need to turn to credit to afford even just the necessities. 

Making the sale is also proving harder for most bridal vendors, with many brides opting to purchase simpler, non-traditional dresses for their big day to cut costs. This is where offering Buy Now Pay Later consumer financing becomes an indispensable tool for your business and customers. Instead of shoppers having to choose between the dress and their budget you are able to give them another payment option that is flexible and suited to their unique financial needs. 

How Does BNPL Work? 

Unlike traditional credit, Buy Now, Pay Later consumer financing is exactly how it sounds, it is a transparent and affordable payment plan that does not require much effort or an in-depth analysis of credit history, and the total amount can be paid back over 6 to 12 months. It is presented on checkout and only takes a few minutes to complete. There are also various terms and payback plans available for the customer to choose from without having to increase their credit limit usage or affect their credit score! To add to the customer’s benefit, some merchants may even offer a 0% APR if paid back in full within 6 to12 months, which will directly contribute to more savings. 

How Does Offering BNPL Benefit Your Bridal Store?

The model of Point Of Sale financing is not just beneficial to your customers but also beneficial to your store. Here are a few benefits you can enjoy from Buy Now Pay Later as a merchant:

It’s Omnichannel 

Due to Covid-19, many businesses have had to create a digital presence in order to adapt and meet the demand. With ChargeAfter’s technology, you are able to offer POS financing online, in your store, or even through your call centers. The ChargeAfter platform can be integrated into your existing systems, making it easy to offer this convenient solution to every customer across the globe. ChargeAfter’s digital solutions include:

• Integrated Buy Now Pay Later  services for Magento and Magento 2 platforms
• Integrated Buy Now Pay Later  services for Shopify platforms
• Integrated Buy Now Pay Later  services for Woocommerce platforms
• Integrated Buy Now Pay Later  services for Shopify platforms
• Integrated Buy Now Pay Later  services for Big Commerce platforms
• Integrated Buy Now Pay Later  services for Hybris platforms

And many more.

Higher Approvals

One of the many things that make this form of consumer financing outshine other methods of credit is that the approvals for this type of financing are much higher. This means that a customer has more chance of getting financing from a lender than if they had to apply for a credit card. But not all BNPL solutions are created equal either. ChargeAfter’s technology uses a network of different lenders who offer various payback rates and terms. Thanks to this waterfall financing method, customer approval rates for BNPL services are 85% and over! Other POS financing providers who work with single lenders have approval rates of between 60 to 65%. This means that by using ChargeAfter’s technology, you are able to get up to 20% more BNPL sales. The higher the approval rates, the more sales you close. 

You Get The Money Upfront

Ultimately, when you close any sale, you want to ensure you get the money upfront without having to manage the admin that comes with other financing options like in-store accounts and layaways. Having to take on the admin of recouping costs and collecting monthly payments is also a very tedious and labor-intensive exercise. With BNPL financing, you are paid upfront while the lender deals with the rest. This not only alleviates the stress but also gives you more time to focus on adapting and building your business during the pandemic.

Higher AOVs

As we mentioned before, the pandemic has changed the way consumers purchase. They are prioritizing the necessities and forgoing the things they consider to be luxuries. This means brides are swapping out their dream gowns for something more affordable instead. But with BNPL financing, you are giving them an affordable payment solution that allows shoppers to get their dream dress or suit without breaking the bank. It also opens the door for higher-value sales. For a couple of extra dollars a month, consumers are more willing to take the more expensive option. They have more buying power and more flexibility to get exactly what they want. 

It is a win-win for both parties. Your AOVs increase while your customers are able to afford the gowns and suits they have been dreaming about to really make their special day a truly memorable one! 

Anyone who owns a car knows that purchasing a new set of tires can be quite an expensive ordeal. And it is not just the cost of tires that is overwhelming but the additional services you may need to ensure your vehicle is safe and roadworthy such as alignment, balancing, and extended warranties. These expenses can add up quickly, which can leave a dent in your wallet that may take some time to recover. But it isn’t just the cost that weighs on the consumer’s shoulders, it is also the entire buying experience. With the COVID-19 pandemic, many are still reluctant to visit physical retail stores, which to be frank is becoming more of a hassle than purchasing online with or without the threat of COVID-19. Consumers are looking for affordability and convenience. A way to purchase tires for their cars from the comfort of their homes without breaking the bank either.

ChargeAfter is paving the way to success by providing customers a seamless online shopping experience where they can purchase big brand PCR/LT, lawn, garden, commercial, tractor, and specialty tires and apply for instant, personalized Buy Now, Pay Later tire financing at checkout!

How Does Buy Now Pay Later Tire Financing From ChargeAfter Work?

The ChargeAfter platform makes it exceptionally easy for customers to apply for instant financing in a few simple steps – and without ever having to leave your website! Once customers have chosen their new wheels and added them to the cart, the Buy Now Pay Later financing option can be selected as the payment method. From there, customers are able to apply for tire financing. ChargeAfter’s decisioning engine technology presents your customers with multiple personalized point of sale financing options that are suited to their needs. Once the offer has been accepted and the terms agreed to, customers can complete their purchase and only worry about paying for the outstanding balance over the next few months.

Why Choose ChargeAfter’s Point Of Sale Technology?

For customers and everything else in the world, everything comes down to affordability. And just because it is affordable for one person, it doesn’t mean that it is affordable for the next. The key to ChargeAfter’s Buy Now, Pay Later financing is flexibility. Giving customers a wide range of financing that works for their pocket and not someone else’s. So how is this achieved? With the multi-lender financing network also known as the waterfall financing method. And this is how it works: Once the financing application is submitted by the customer, it is then checked against prime lenders for approval. If the applicant is denied at the first stage, the application moves down to near-prime or “second look” options for approval. If the applicant is still denied, the application is then shared with sub-prime lenders (“lease to own”) for approval. Multiple lenders are checked in the waterfall so various rates and terms are available to shoppers once approved. 

Having access to the diverse network of lenders and various rates and terms means that approval rates are higher. Higher approval rates mean more sales. ChargeAfter’s technology enables tire retailers to boost their customer rating by up to 85% whereas other BNPL service providers who offer single lender services only have an approval rate of around 60 to 65%. This means that just by using ChargeAfter’s POS financing technology merchants can get up to 20% more Buy Now Pay Later tire sales than with any other BNPL service provider. 

The Bottom Line

Partnering with ChargeAfter will give you the upper hand when it comes to affordable tire financing. Providing customers with a convenient and enjoyable online shopping experience and ChargeAfter’s POS financing technology means that customers are able to get the quality tires they are looking for without maxing out their credit cards or dipping into their hard-earned savings!

Consumer financing and credit have evolved drastically over the past couple of years, with more and more options available to choose from. Merchants are always looking for new ways to make their products more accessible and affordable for their consumers from offering loyalty points, branded store cards to on-accounts and layaways. Recently, Buy Now, Pay Later (BNPL), or Point Of Sale Financing has become a popular choice in the retail space especially among the younger demographics who are avoiding credit cards at all costs. 

For these tech-savvy, younger consumers, BNPL is an appealing payment option that is not only affordable but more suited for their needs. For merchants, POS financing enables you to attract more of these customers while also increasing average order values and reducing the number of abandoned carts. While it is certainly an attractive solution to offer, it does not necessarily mean that BNPL is suitable for your business. But how do you know offering Point Of Sale financing is the right fit for your company and consumers? 

These few signs below may help you answer that question. If you find yourself agreeing with the points below, then it may be time to look into offering Buy Now, Pay Later financing solutions in your store.

eCommerce Is Your Money Maker

If your business is predominantly online, BNPL is one of the best instant financing options for your consumers. It is eCommerce friendly and takes only a few minutes to apply for, which is not the case for store credit, on account, or layaway payments. Giving consumers access to instant financing generates a positive and seamless user experience that will resonate with them well into the future. With up to 85% approval rates from ChargeAfter, there is also a higher chance of your customers completing the checkout process and converting it into a sale.

In addition to higher approval rates, ChargeAfter’s technology can also be seamlessly integrated into your existing platform. ChargeAfter’s Buy Now Pay Later is compatible with Shopify, Woocommerce, and many other eCommerce platforms!

You Sell High Ticket, Long-Lasting Products

If you are an eCommerce store that sells high ticket items like electronics, mattresses, or furniture, offering BNPL financing can make all the difference when acquiring customers. Customers usually take time to decide whether or not to purchase higher-priced items, and they are more than likely going to shop for the best deal if they really need or want the item. Offering BNPL mattress financing, or financing for furniture and electronics helps to put the buying power back in their hands with more choices and less pressure financially. Instead of having to pay the total amount upfront or max out their credit cards, your customers can apply for the instant loan and pay back a pre-agreed amount over a few months.

Your Customers Are Bouncing

If you have noticed an upward trend in abandoned carts, it may be time to look into offering Point Of Sale financing. There are many reasons why customers drop off before completing the checkout process, however, one of the main factors is price. High prices can cause your customers to leave without ever coming back especially when there are no flexible payment options available in your store. There are many shoppers who don’t own credit cards and many others who simply don’t have the cash upfront. Instead of being forced to drop prices and affecting your bottom line, POS financing can help get you the sale and get the customer their goods all without having to undercut prices.

You Want To Create An Enjoyable Shopping Journey

Customer experience is everything in the retail world and in order to get more customers through your doors or portal, you need to meet their expectations. This means bumping up your website, promoting sustainability, and creating an easy checkout process. Nothing says customer service quite like instant BNPL financing. It takes minutes, does not require pages and pages of details and the response to the application is immediate. No lines at the bank, no heaps of paperwork, and fewer rejections! Plus your products become affordable for the average consumer. Point Of Sale financing from ChargeAfter caters to any shopper’s needs with flexible terms thanks to a diverse network of multi-lenders. When customers enjoy your shopping experience, they are more likely to keep coming back for more.

The Bottom Line

BNPL financing is a great option for your business if you sell high ticket items online, put customer experience top of mind, and want to have fewer abandoned carts. With Buy Now Pay Later you are able to put the buying power back into your consumer’s hands and gain more customers from the younger generations. The wider the net, the more potential to make sales!

Most of us don’t give it a second thought but your mattress plays a pivotal role in your sleep health. Sleeping on a bad mattress can leave you with chronic back pain or interrupted nights of rest, which can have a significant impact on your overall health. According to experts, a good quality mattress should last about 10 years but should be replaced every 7 to 10 years. This of course varies depending on how you take care of it, but still, it’s a hefty cost to budget for regardless. A good quality mattress can retail for anywhere between $700 to $5000 depending on the type you are looking for. Unfortunately most of us just simply don’t have the additional $700 lying around. However, this is where Buy Now, Pay Later Mattress financing comes in handy!

How BNPL Financing For Mattresses Work? 

It’s no secret that there are many payment and financing options on the market today. Each with its own set of pros and cons. There is the traditional method of making the purchase on a credit card, or the purchase can be made with online layaway programs.

Purchasing on a credit card is nothing new, but if you know a thing or two about how they work, it is not the most financially savvy option to choose when making larger purchases. Why? Well, simply put, the interest and fees you are charged every month will total to much more than what the mattress is worth. Depending on the interest rate and your bank’s current fees, you could land up spending $50 or more over and above the original price of the mattress. This also means that your credit card utilization increases, meaning that you have fewer funds available for when you actually need it like in the case of an emergency. 

Using online layaways doesn’t leave you in a better position either. In this case, you would be given a predetermined amount of time to pay the full amount of the mattress. However, you don’t get to take the mattress home with you. You would only be able to get the goods once the total amount is paid in full. This could take you months to pay off, especially if you are on a very tight monthly budget!

BNPL mattress financing options are instant financing options that can be requested online or in-store. Once you have found the mattress you want, add it to your cart and select the BNPL payment option. You will then be prompted to fill in a few details. Once submitted you will receive a notice whether you have qualified for the microloan or not. This all happens without ever leaving the website and in just a few minutes. You will also be given the payback terms immediately so there is no guesswork on how much you’d have to pay back monthly. The amount due is broken down into affordable payments over a few months, meaning that you don’t have to blow your entire budget for the month all at once. Purchasing high ticket items has never been simpler or more affordable!

More Options With BNPL Mattress Financing

One of the many benefits of Buy Now, Pay Later consumer financing is that there is more flexibility in terms of choosing the right payment terms for you. ChargeAfter’s Multi Lender network gives consumers more options to choose from depending on their current financial needs. Unlike credit cards, applying for BNPL mattress financing also enables you a higher chance of getting an approved loan because the qualifying criteria are more suited to the average earning consumer. This financing is not a one size fits all, instead, it caters to different financial situations, giving you, the consumer, more buying power and freedom to make decisions that work for your lifestyle and budget!

Buying a product now and only paying for it later has always had the upper hand in gaining a customer’s attention. And today, the concept is gaining more and more momentum around the globe due to the recent economic decline brought on by the COVID19 pandemic. Customers are looking for more ways to get the most out of their dollars and Buy Now Pay Later (BNPL) or also known as Point Of Sale financing is giving them the financial flexibility they want and need. 

Previously, consumers only really had access to credit cards in order to help alleviate some of the financial stress of paying for the product up front. While the credit card system has worked for many, it has also caused financial destruction and amounted to crippling debt for many others. Now, with the new generation of shoppers, consumers are becoming warier of credit cards and are looking for alternative payment methods to get more bang for their buck, this is where BNPL bridges the gap. In fact, 87% of shoppers between the ages of 21 to 44 seek out retailers who specifically offer Buy Now Pay Later options. 

This has not only taken care of the needs of shoppers, but merchants are also seeing a rise in sales and average order values! However, like most things in life, not all Buy Now Pay Later providers are created equal. Looking for one that enables you, as the merchant, to attract and retain the customer’s attention is a key factor in boosting overall sales. 

So What Is The Best Buy Now Pay Later Business Model To Look For? 

The answer is simple. Multi-lender BNPL consumer financing! 

So what does that mean? A multi-lender BNPL platform is quite different from others in the way that it enables your shoppers to get the best and most affordable payment options through various lenders. Usually, microloans are provided by merchants to the consumer using what’s known as Prime Lenders. Prime lenders hold most of the cards in their hands, and rightfully so seeing that they are offering up a whole lot of cash. However, gaining access to this cash means that your consumers have to meet strict criteria when applying for the loan. Prime lenders do stringent background checks and base their final decisions on factors such as previous debt history, credit record, and current income. 

Unfortunately, many consumers are unable to meet these criteria. Everyone has unique financial needs and putting them in a single box means that they more than likely won’t qualify for the microloan. With very few options to choose from, your consumers are unable to purchase your product, meaning that you miss out on the sale and the opportunity to gain a loyal repeat customer. 

With a Multi-lender BNPL platform, it is a very different scenario and outcome…

How Does Multi Lender BNPL Financing Work? 

A multi-lender, or waterfall financing network broadens the lending potential. BNPL service providers like ChargeAfter cast a wider net for consumers when seeking out the right lender and terms. Instead of applying for the microloan with a prime lender, shoppers are also able to apply for the same loan amount from near-prime and subprime lenders. Near-prime and subprime lenders do not have the same stringent protocols and criteria in place compared to prime lenders, instead, they offer various terms based on the financial wellbeing of the customer. With this type of waterfall financing, should a consumer fail to meet the criteria of a prime lender, they are automatically vetted against a near-prime lender. If the consumer is unable to meet the criteria of a near-prime lender, they are then given the opportunity to source the loan from a subprime lender.

While this may seem like a lengthy process for your shoppers, it only takes a few seconds and without ever having to leave your website page either! 

How Does Multi-Lender Buy Now Pay Later Financing Help To Increase Approval Rates? 

It all boils down to the power of choice and financial flexibility. By giving your customers more freedom to choose their lending terms without worrying about in-depth credit checks and income requirements that most prime lenders have in place, there is more opportunity for them to actually get an approved loan through various other types of lenders. More approved loans means more sales for your business! 

The benefits of multi-lender financing include:

• Customers can choose the best payback terms based on their current financial state. 
• Less admin work for your staff.
• Fewer shoppers are turned away when applying for the loan.
• Up to 85% more approval rates.
• Higher AOVs.
• More sales.
• Fewer abandoned carts.
• More repeat customers.

It is very rare that your customers all have the same requirements in terms of their finances and by giving them a payment method that caters to the vastly different needs of your customers, they will not only appreciate your brand but also be more inclined to support your company in the future!