Author: Mark Denman

Leading retailers recognize the strategic importance of point-of-sale (POS) financing to attract interest-weary shoppers, especially during this period of uncertain economic conditions. When implemented correctly, POS financing becomes an essential tool to boost conversion and customer satisfaction. 

In May, the Federal Reserve reported that consumers are preparing for continued inflation, yet they remain undeterred from shopping. The April Survey of Consumer Expectations shows that spending is projected to grow by 5.2% over the next year. This underscores the importance of providing flexible and appealing financing options at the point of sale.

The Strategic Importance of POS Financing

A well-executed POS financing offer meets the customer at their moment of need, offering a fast and seamless experience. ChargeAfter data shows that merchants who adopt a multi-lender waterfall financing model with solutions for prime, near-prime, and subprime shoppers, can achieve up to 85% approval rates. This model ensures that a wide range of customers can access financing options that suit their credit profiles, expanding the potential customer base and increasing conversion rates.

Moreover, recent data gathered by ChargeAfter reveals that only 2% of retailers achieve at least 80% approval rates, highlighting the competitive advantage of implementing a robust POS financing strategy.

Multi-Lender Waterfall Model: A Path to Higher Approval Rates

To effectively meet the needs of their entire customer base, retailers must integrate multiple lenders covering the full credit spectrum into the points of sale. This multi-lender approach provides personalization and choice through various financing products such as private label credit cards (PLCC), revolving credit, installments, lease-to-own, buy now, pay later (BNPL), and B2B financing.

However, merely offering access to multiple lenders is insufficient. A well-executed POS financing offer must meet customers at their moment of need, whether they are shopping in-store, online, through call centers, or even in-home. It should provide a fast and seamless experience in real-time and deliver choice and personalization.

Integrate Multiple Lenders with an Embedded Lending Platform

To seamlessly integrate multiple lenders into omnichannel points of sale with a single application, an embedded lending platform is essential.  As well as delivering customers with instant access to the best-fit financing options, it provides numerous benefits for retailers. These benefits include fast and easy integration, comprehensive post-sale management, lender redundancy, visibility and control, and financing data in a single integrated solution. ChargeAfter is the platform of choice for America’s top retailers. In a single technical integration, ChargeAfter not only makes it easy to unlock a network of lenders but also removes the burden of managing multiple lenders, including taking care of sensitive PII, terms and conditions, disclosures, etc. 

Effective Marketing Strategies to Promote Financing Options

Of course, retailers need to communicate to buyers that financing is available within the shopping journey. One way to do this is through marketing campaigns. Another effective way is to communicate with shoppers throughout their purchasing journey. For example, retailers can add promotional widgets on their eCommerce websites, embed financing into the checkout process, and invite customers to apply for pre-qualification, which can also be used in-store. In-store signage with QR codes enables customers to apply for financing on their mobile devices, facilitating purchasing decisions.

Signage regarding POS financing availability at self-checkout and traditional checkout ensures shoppers can confidently continue their journey, knowing that POS financing can help them buy the desired goods. In the context of persistent inflation and evolving consumer spending habits, retailers must adopt diverse financing options to attract and retain customers.

The Competitive Advantage of Embracing Innovative POS Financing Solutions

Retailers who embrace innovative POS financing solutions will be well-positioned to drive sales, boost customer satisfaction, and maintain a competitive edge in the market. By adopting a multi-lender waterfall model through a platform, retailers can offer a seamless and personalized financing experience that meets the diverse needs of their customers. Effective marketing strategies further enhance the visibility and appeal of these financing options, ensuring that customers are well-informed and confident in their purchasing decisions. ChargeAfter is the platform of choice for America’s top retailers.

Mark Denman

EVP Merchant Sales & Success

About Mark Denman

Mark has worked in the near-prime and tertiary lending space for 30 years. As EVP of Merchants Sales & Success at ChargeAfter, he is responsible for ensuring merchants and lenders get the best care possible.

In today’s fast-paced retail environment, ensuring customers have seamless access to  financing choices is critical to boosting sales and building customer loyalty.  The ability to pay for goods over time through financing can be the deciding factor when completing a purchase. This is especially true during this period of inflation when people are more protective of their resources. Even without inflation, consumer demand for financing is likely to continue as credit cards drop in popularity with younger generations. 

One of the consequences of the rise of demand for consumer financing is that it has become impossible for merchants to create and manage an exceptional financing offer in-house. To manage a robust financing offer, retailers require a technology partner to integrate point-of-sale financing into modern customer journeys. This solution is best provided by a platform that can meet the needs of diverse customer profiles while being fast and easy to use for customers and merchants alike. Implementing the right consumer financing platform has become a strategic must for merchants. 

For leading merchants, ChargeAfter is the platform of choice. Here are seven reasons why.

7 Reasons Why Leading Merchants Choose ChargeAfter 

1. A seamless omnichannel financing experience
2. Expansive Network of Lenders
3. Easy integration and management
4. Unwavering Compliance and Security
5. Higher Approval Rates Equate to Increased Sales
6. Actionable Analytics and Data
7. Customize with White Label Consumer Financing

A Seamless Omnichannel Financing Experience

Your customers expect a seamless, omnichannel purchasing experience, especially for big-ticket items. Some customers start their purchasing journey online before heading to a brick-and-mortar store or interacting with a call center. Your financing offer must be embedded into these omnichannel journeys. Your offer must also be flexible enough to meet your and your customer’s needs and not be tied to rigid experiences, such as in-store stands serving a long line of customers.

ChargeAfter enables this with a state-of-the-art customer-facing application. It makes it easy for you to offer different ways to access financing choices at every point of sale. This can include a QR code in-store or online, sending customers a link to apply, promotional links on your eCommerce site, online pre-approval, and in-store devices – whatever works best for you and your customers.

Expansive Network of Lenders

With over 40 lenders embedded into ChargeAfter’s platform, you can easily offer your customers access to diverse financing products that to cater to every consumer, regardless of their financial standing. As a result, your approval rates are likely to increase to up to 85%. 

Especially during economic fluctuations, having a diverse range of lenders, including B2B financing options, ensures every customer is included. The platform also offers merchants the flexibility to introduce their preferred lenders. Such an expansive network ensures that you remain resilient against individual lender decisions and allows you to capitalize on every sales opportunity.

Easy Integration with Waterfall Finance Methods

The platform stands out with its simplicity. Merchants can enjoy easy integration of this embedded finance platform into their systems. ChargeAfter uses a waterfall finance method that instantly matches customers with the best lending offers suited for their credit profiles. Additionally, its post-sales management features—dispute resolution, refunds, and reconciliations—provide real-time insights. Such embedded financing ensures that merchants and consumers can transact with ease and speed.

Customize with White Label Consumer Financing

ChargeAfter’s white-label POS system allows customization for businesses prioritizing brand identity, reinforcing brand loyalty. Whether you’re seeking a white-label BNPL solution or comprehensive white-label consumer financing, ChargeAfter has you covered.

Unwavering Compliance and Security

Data security, especially in e-commerce financing, is paramount. ChargeAfter’s commitment to both transactional and personal data security is exemplary. Their platform ensures that every piece of data, from credit details to personal identifiers, is guarded against potential breaches. Furthermore, they adhere to all financial regulations, both federal and local. This commitment to embedded finance solutions, combined with unwavering security protocols, ensures merchants can focus on selling, free from the hassle of intricate financial regulations.

Higher Approval Rates Equate to Increased Sales

Through its multi-lender setup, ChargeAfter revolutionizes POS financing. With a broader spectrum of lenders, consumers enjoy a higher likelihood of loan approval, motivating them to finalize their purchases. This embedded lending approach ensures sales and makes your offerings more accessible to a broader audience.

Actionable Analytics and Data

Data-driven insights are crucial for improving customer experiences and optimizing sales strategies. ChargeAfter offers comprehensive analytics, allowing merchants to understand their customers’ buying journeys. Whether it’s identifying drop-off points or successful conversion moments, these insights enable the optimization of the POS lending process.

Case Study: Jerome’s

The success story of Jerome’s Furniture, a legacy brand with over six decades of experience, has been profoundly enriched by its partnership with ChargeAfter. Jerome’s astute integration of ChargeAfter’s consumer financing platform showcased how forward-thinking strategies can lead to exponential growth, even during economic uncertainties. With a commendable 67% increase in customer financing adoption, Jerome’s has ensured its clientele can afford quality furniture without financial strain. This case study underscores the pivotal role consumer financing plays in modern retail, exemplifying how strategic collaborations and a focus on customer-centric solutions can yield impressive outcomes.

Want to delve deeper into Jerome’s Furniture’s remarkable growth journey with ChargeAfter? Download the complete case study and discover the transformative power of consumer financing in the retail sector. Grab your copy now!

In conclusion, as merchants search for an efficient point-of-sale financing platform, ChargeAfter emerges as a frontrunner. Its focus on omnichannel lending and features like white-label BNPL solutions and waterfall financing ensures that merchants and consumers enjoy unparalleled experiences. In the evolving world of consumer finance and in-store financing, having a partner like ChargeAfter can be the game-changer that sets a business apart.

About Mark Denman
Mark has worked in the near-prime and tertiary lending space for 30 years. As EVP of Merchants Sales & Success at ChargeAfter, he is responsible for ensuring merchants and lenders get the best care possible.