Category: Blog

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! 

 

Buy Now, Pay Later (BNPL) consumer financing is a powerful tool that can help increase sales, push up average order values, and encourage more repeat customers when utilized correctly. In a world where debt and credit have become taboo, BNPL solutions bridges the gap and gives consumers more flexibility and choices when purchasing at any store.

There is no doubt that the demand for this type of consumer financing is increasing, but in order for your business to leverage the full potential of Point Of Sale finance, your customers need to know that your store offers this service. How are your customers able to utilize the service if they have no idea that your store accepts this payment method? Knowledge is power and by offering your consumers as much information as possible, they are able to make wise and financially sound decisions when visiting your retail store. 

If you are new to Buy Now Pay Later, here are a few ways to get started:

Choose The Right POS Financing Partner

The first step is finding a trusted consumer financing partner that can be seamlessly integrated with your existing Point Of Sale system to ensure the checkout process runs smoothly and does not require any additional development, manual work, or costs. 

ChargeAfter is a multichannel, multi-country consumer financing platform that enables you to offer Point Of Sale consumer financing wherever your customers are and can be seamlessly integrated into your existing POS system, website, or call center operations. 

Scope Out The Costs

Everything boils down to cost in business. With most Buy Now, Pay Later solutions, there are some processing fees involved, which is usually a percentage taken from the sale transaction. Always ensure that you have done your research into the fees before settling on a Point Of Sale Financing Partner, you don’t want to end up being out of pocket at the end of the day.

Go For Waterfall Financing 

Ideally, you want high approval rates. What this means is that you want to ensure that your customers actually get approved for the financing to use in your store. Consumer financing partners like ChargeAfter have a large network of various prime, near-prime, and sub-prime lenders, which means that your consumers have a higher chance of getting approved even if they don’t qualify with prime lenders. If their application is rejected by prime lenders, they are then vetted against near-prime lenders. If they don’t qualify in the near-prime bracket, their application is then sent to sub-prime lenders for the final decision.

The entire process takes place on the merchant’s website without any redirects and takes only seconds. Because multiple lenders are checked in the waterfall, various rates and terms are available to shoppers once approved allowing the consumer to pick the best-personalized offer for them. 

Advertise Your Buy Now Pay Later (BNPL) Payment Solutions

Once you have partnered with ChargeAfter, it is time to announce it to your customers. One of the most effective ways to announce this is by sending out a mailer to all of your subscribers telling them about Buy Now Pay Later, you can also include a few of your top-selling products to entice your consumers to make the sale using your new Point Of Sale financing options. 

Put It On Display

Visuals are always effective when it comes to marketing your products and services. If you own an eCommerce store, use catchy banners, icons, or logos to advertise Buy Now, Pay Later services. If you have a brick-and-mortar store, you can use signage across the store to make your customers aware of your consumer financing. For example, make decals for shop fronts, mirror stickers in dressing rooms, and tent cards at the checkout counter.

Announce It On Social Platforms

Social commerce is thriving so what better way to encourage customers to use your Point Of Sale financing than posting it on your pages. You can create amazing eye-catching graphics on helpful tools like Canva to make your post more engaging and enticing.

Now that you have these tips in hand, it is time to partner up with reputable companies like ChargeAfter and announce it to the world!

 

Return customers and sustainable growth is something all businesses dream about. In order to reach these goals, one of the critical factors that lie on your shoulders is to ensure that your customers shop responsibly. After all, a broke customer is not returning to your store anytime soon, which is why you need to take certain measures to ensure your store does not leave them penniless when visiting your store for the first time. 

If your company is experiencing steady growth, here are a few ways to turn your buyers into repeat customers instead of completely broke ones.

Breaking The Turbulent Credit Cycle

Credit – it’s something that can really help out when you are stuck in a financial pickle, but it is also something that can cause utter financial devastation. Finding a middle ground between the two is a very rare skill only a few people master. And unfortunately, the cold hard truth is that the credit system is flawed and simply does not work for everyone’s pocket. 

Offering this as your only payment option at checkout is not only fueling the problem but also limiting your products to only a select few. There are thousands of shoppers who do not have access to credit cards or who simply don’t want them at all, and by limiting your payment options or encouraging customers to add further debt to their already fragile credit limit closes so many doors of opportunities for your business. If a customer blows their entire credit limit on one item from your store, they are less likely to return ever again thanks to the already painful experience of forking out hundreds of dollars they don’t have.  

The Solution – Buy Now Pay Later (BNPL)

Point of sale financing, BNPL, or Buy Now, Pay Later is helping shoppers to spend responsibly across the globe in various stores. This form of consumer financing enables shoppers to apply for smaller loans instantly without the fluctuating interest rates or unexpected fees associated with credit cards. 

There are serious consequences to missing a credit card payment and while Buy Now, Pay Later comes with its own consequences if not used responsibly, the main difference between the two is that Buy Now, Pay Later financing options come without interest and all costs are transparently presented to the customer before they finalize their check out. Whether a customer is applying for finance for electronics from your store, they will know exactly how much they will need to pay back to the lender over the predetermined time frame. The terms are clearly laid out, unlike credit cards where fees fluctuate and other surprise bills come in the mail. 

For example, offering online point of sale financing from ChargeAfter means that your customers now have direct access to a microloan that is risk and interest-free. The customer is presented with the payment plan details and the payback period. It is a win-win! They get the goods they want and the freedom to make more informed decisions while you as the merchant experience fewer cart abandonment and higher AOVs without watching your customers dive straight into debt like they would in the case of credit cards. 

Providing Transparent Information 

Information is one of the most powerful resources you can give to any consumer. Not only does this help build a lasting relationship with you shoppers built on trust, but it also enables them to make responsible and informed decisions. Being transparent about shipping costs, additional taxes, and payment terms and conditions upfront will go a long way for your business and gaining repeat customers!

Window shoppers, a term both eCommerce and retail stores are familiar with. Customers are browsing your website or looking in-store, but all too often, these customers leave with no goods in hand or in cart. As a business owner, this can be frustrating as you have managed to grab the shopper’s attention, but something has gone awry in the sales funnel. Brick and mortar and eCommerce stores should be taking essential steps to ensure these window shoppers turn into buyers. If you haven’t already implemented these solutions, here are helpful tips to get customers to buy.

Improve User Experience

User Experience is not just a buzzword, it is a crucial part of ensuring your success as a store owner. The more users have to search or click to find the product, price, or other important information, the more likely they are to leave your website. The same goes for physical retail stores. The shopping process should be seamless and your customers should be able to find what they are looking for with ease. Price tags are also essential. Make sure every item is clearly marked in your store. For eCommerce stores,  spend a little time going through the product pages and check out yourself to see what issues may be causing customers to drop off.

Create A Visual Experience

By nature, humans are visual creatures. A well laid out store or website with high-quality images, neat racks, and consistent branding is more likely to grab your consumer’s attention – and hold it. For online stores, products should be well presented, high quality, and a true representation of what you are offering. 

Offer Buy Now Pay Later (BNPL)

Many times, customers are forced to leave your store empty-handed simply because of cost. This does not necessarily mean you need to lower your prices to make the sale. Instead, a good solution is to give your customers flexible finance options like Buy Now, Pay Later (BNPL), or also known as Point Of Sale Financing. Both eCommerce and physical retail stores are able to widen their net and attract a larger market with these types of payment options. A shopper can purchase your goods without having to pay the full amount upfront or put the total amount on their credit card – which can lead to a never-ending cycle of debt. Instead, they are able to make more affordable monthly payments until the total price has been paid back to the lender. ChargeAfter provides merchants with waterfall lending options that can be integrated into existing websites or can also be utilized in physical retail stores at the checkout counter. And there is no limit to what you are able to offer financing for either. Buy Now Pay Later from ChargeAfter enables you to offer finance for electronics, financing for furniture, financing for mattresses and more. 

Advertise Your Buy Now Pay Later Options

If the customer doesn’t know what you offer, how are they supposed to take advantage of it? Use your payment and financing options to draw customers in. You can display these using banners or badges on your website and in physical retail stores, you can advertise your BNPL options with window stickers, pull up banners or even on flyers to give to potential customers passing by.

Beef Up Security

This point is particularly important for eCommerce. Your shoppers are giving you sensitive details when purchasing your products and want to know that all their data will be secure. Payment security should be top of mind, especially for unknown sites – or those who are just starting out. Reassure your customers that their data is safe with you by displaying badges from reputable payment providers.

The Bottom Line

The eCommerce and retail space is highly competitive, and in order to capture the market, you need to take extra measures to stand out from the crowd. By improving visual and user experience, offering flexible financing and making sure your website is secure, you will ensure that more window shoppers actually start converting into paying customers.