Category: Blog

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.

Point-of-sale (POS) consumer credit financing has revolutionized how businesses tap into new markets by combining technology with the rising demand for instant gratification. By offering shoppers more flexibility in payment options, businesses open doors to increased revenue, larger basket sizes, and a seamless customer experience. This applies to high-ticket items like cars or home appliances and everyday products like shoes or accessories.

So, what makes these instant loans so effective at driving sales? It’s all about credit distribution and approval rates. With the right POS financing partner offering smooth credit distribution and higher approval rates, merchants can experience significant profit growth and see more return customers.

Explore the different credit distribution models through in-store and online POS financing.

How does consumer POS financing work?

Consumer POS financing, also known as buy now pay later (BNPL), offers shoppers the flexibility to purchase items without immediately using credit cards or cash. Customers select the BNPL option at checkout and quickly fill out an application. The approval process happens instantly, without leaving the page, as the customer’s data is verified against lender criteria. Once approved, they can repay the loan over a set period.

Single-Lender Credit: Challenges for Merchants

In many cases, POS financing providers use a single lender for credit distribution. This means customer data is matched against one prime lender’s criteria at checkout. Prime lenders typically approve loans based on low-risk borrowers with high credit scores and stable incomes. Customers’ loan application is denied if they don’t meet these requirements.

Although the lender avoids high-risk borrowers, merchants often lose sales. Unfortunately, roughly 70% of applications are rejected with a single lender platform, resulting in missed opportunities for businesses.

Multi-lender credit distribution model

Unlike single-lender models, a multi-lender credit distribution platform gives consumers access to a network of lenders, increasing the chances of loan approval. If a customer fails to meet the criteria for prime lenders, their data is reviewed by near-prime and sub-prime lenders. This layered approach ensures that customers who may not qualify for traditional credit still have a chance to make purchases.

For the merchant, this means fewer missed sales and higher approval rates. A multi-lender network increases approval rates from the typical 30% in single-lender models to as high as 85%, allowing more customers to complete their purchases through POS financing.

Credit flexibility and omnichannel lending

The integration of POS financing across in-store and online channels, known as omnichannel lending, ensures that customers have flexible payment options wherever they shop. Whether through an in-store checkout process or an online platform, the customer experience remains seamless. This drives sales and encourages repeat purchases, as customers appreciate the convenience of choosing their preferred financing option.

With omnichannel lending, retailers can offer a consistent experience, meeting the growing demand for flexible credit solutions that cater to individual financial situations.

Benefits of a Multi-Lender Credit Network for Merchants

A multi-lender credit platform benefits consumers and boosts merchant revenue. Businesses can attract a broader range of customers by providing more flexible credit options. Additionally, higher approval rates lead to fewer abandoned carts, improved customer satisfaction, and more excellent overall sales.

The role of embedded lending in consumer financing

Embedded lending enhances the customer experience by integrating credit options directly into the shopping journey. Whether customers purchase in-store or online, embedded lending solutions allow them to select a financing plan without leaving the checkout page. This seamless integration reduces friction, ensuring customers can make decisions quickly and confidently.

For businesses, embedded lending platforms streamline the purchasing process and offer a more personalized approach to credit distribution. By leveraging customer data, these platforms can tailor financing offers that suit the buyer’s unique needs, resulting in higher conversion rates and customer loyalty.

Boost Your Business with a White-Label Credit System

A white-label POS system allows merchants to offer branded financing options while maintaining complete control over the customer experience. By partnering with white-label providers, businesses can integrate custom POS financing solutions that align with their branding and meet their specific goals. This level of customization is critical to building a solid relationship with customers, as they can trust the business to offer reliable and accessible credit solutions.

Additionally, white-label POS systems offer flexibility across multiple payment options, including BNPL, allowing consumers to choose the best credit terms for their financial situation.

Critical advantages of omnichannel financing for retailers

Implementing omnichannel financing allows retailers to bridge the gap between online and offline shopping, ensuring a smooth and unified customer experience. Whether shopping online from home or visiting a physical store, omnichannel lending enables consistent access to credit options.

Retailers benefit from offering a more integrated shopping experience, resulting in improved sales, increased customer retention, and the ability to capture a larger market share.

The role of embedded lending in consumer financing

Embedded lending enhances the customer experience by integrating credit options directly into the shopping journey. Whether customers purchase in-store or online, embedded lending solutions allow them to select a financing plan without leaving the checkout page. This seamless integration reduces friction, ensuring customers can make decisions quickly and confidently.

For businesses, embedded lending platforms streamline the purchasing process and offer a more personalized approach to credit distribution. By leveraging customer data, these platforms can tailor financing offers that suit the buyer’s unique needs, resulting in higher conversion rates and customer loyalty.

Boost your business with a white-label pos system.

A white-label POS system allows merchants to offer branded financing options while maintaining full control over the customer experience. By partnering with white-label providers, businesses can integrate custom POS financing solutions that align with their branding and meet their specific goals. This level of customization is key to building a strong relationship with customers, as they can trust the business to offer reliable and accessible credit solutions.

Additionally, white-label pos systems offer flexibility across multiple payment options, including bnpl, allowing consumers to choose the best credit terms for their financial situation.

Critical advantages of omnichannel financing for retailers

Implementing omnichannel financing allows retailers to bridge the gap between online and offline shopping, ensuring a smooth and unified customer experience. Whether shopping online from home or visiting a physical store, omnichannel lending enables consistent access to credit options.

In-store financing: A key driver for consumer loyalty

In-store financing is an essential element of modern retail, allowing customers to purchase without paying upfront. By offering credit options at the point of sale, businesses can make high-value items more accessible to a broader audience. This leads to increased customer satisfaction, higher conversion rates, and stronger long-term loyalty.

Consumers appreciate the convenience of readily available in-store financing options, as they simplify the purchasing process and provide flexible repayment terms. For retailers, in-store financing encourages repeat visits and enhances customer relationships, ultimately driving growth.

Enhance your revenue with an embedded finance platform.

An embedded finance platform allows businesses to integrate credit solutions directly into their sales process, whether online or in-store. By partnering with a robust embedded finance platform, companies can offer a seamless financing experience that aligns with the customer journey. This improves conversion rates and increases customer satisfaction by providing tailored credit options that meet individual needs.

By leveraging embedded finance solutions, businesses can reduce cart abandonment and boost overall sales while creating a more efficient, customer-focused experience.

White-label BNPL solution: Customizing your financing offer

A white-label BNPL solution empowers businesses to offer personalized buy-now-pay-later services that reflect their brand. By tailoring BNPL to match specific customer segments, merchants can provide flexible payment options that cater to different financial situations. This customization enhances customer trust and drives repeat purchases.

Furthermore, offering a white-label BNPL solution allows businesses to control the branding and user experience, ensuring that customers associate positive interactions with their company while benefiting from the infrastructure provided by BNPL providers.

The future of e-commerce financing

E-commerce financing is becoming increasingly important. With more consumers shopping online, businesses need to offer flexible credit solutions that cater to this growing demand. By integrating e-commerce financing options such as buy now, pay later, and other POS lending solutions, businesses can tap into a larger market, reduce cart abandonment, and increase sales.

Offering e-commerce financing ensures customers can access the products they want without worrying about immediate payment, making the online shopping experience more convenient and accessible.

Omnichannel lending: Unifying online and in-store experiences

The concept of omnichannel lending unites the flexibility of online financing with the convenience of in-store financing, creating a cohesive customer experience. Whether a customer is shopping online or visiting a physical store, omnichannel lending provides consistent access to credit options, allowing them to choose the payment terms that best suit their needs.

This unification benefits retailers and consumers, simplifying the financing process across multiple channels, increasing customer satisfaction, and driving higher sales. By offering omnichannel lending, businesses can build a loyal customer base and remain competitive in an increasingly digital marketplace.

Embedded lending networks: Expanding customer reach

By utilizing an embedded lending network, businesses can expand their customer base by offering more accessible credit options. These networks connect merchants with multiple lenders, increasing the chances of loan approval for customers with varying credit histories. With a broader selection of financing partners, businesses can provide tailored credit solutions that suit diverse customer needs.

An embedded lending network improves the customer experience and boosts sales by reducing barriers to purchase. For businesses, this means fewer missed opportunities and a more decisive competitive edge in the marketplace.

Choosing the Right POS Credit Financing Platform

Selecting the right pos financing platform is crucial for driving sales and enhancing customer satisfaction. The best platforms offer a seamless, integrated experience that allows customers to quickly apply for and receive credit at the point of sale. This ease of use can significantly impact a customer’s purchase decision.

When choosing a pos financing platform, businesses should consider factors such as approval rates, integration capabilities, and customization options to ensure they provide their customers with the best possible experience. A well-chosen platform will drive both customer loyalty and increased revenue.

Point of sale financing, also known as buy now, pay later (BNPL), is becoming an essential part of the purchasing journey for many consumers. For sellers, this presents a unique opportunity to enhance the shopping experience, drive more sales, and increase customer loyalty. Many consumers are shifting away from credit cards due to fluctuating payments, high APRs, and the risk of falling into debt. Offering checkout financing options can help sellers attract more customers and boost their revenue. Here are several ways point of sale financing can benefit your business and customers:

Point of sale financing attracts younger buyers

Younger buyers, such as Millennials, are driving the popularity of buy now, pay later financing options. This demographic is responsible for a total spend of $600 billion in the USA alone, which is expected to grow to $1.4 trillion this year, making up 30% of total retail sales.

Both Millennials and Gen Zs are avoiding traditional lines of credit like credit cards due to the risks and debt involved. However, they still want to purchase larger items without paying the full amount upfront. Online financing bridges this gap seamlessly by allowing shoppers to apply for an instant loan on big-ticket items without leaving the cart or checkout counter.

By offering younger shoppers the convenience of affordable payment plans, sellers can reduce cart abandonment and encourage larger purchases. POS financing is becoming an expected part of the shopping journey, especially among younger shoppers. Capturing this market by giving them more flexibility means they can more easily purchase your goods or services.

Affordable options for shoppers and sellers

Offering customers affordable shopping cart financing options like ChargeAfter benefits sellers by driving sales and increasing the average order value. The soaring debt and hefty interest fees associated with credit cards put stress on buyers. According to research, 73% of shoppers find it more stressful to buy larger items on credit cards due to expensive interest fees.

When the stress of costly monthly payments and high APRs is eliminated, shoppers feel more comfortable closing the sale and are more likely to buy higher-priced items. POS financing platforms provide a more affordable alternative, allowing shoppers to pay in installments with lower or no interest fees, making the purchase process more accessible and stress-free.

Enhancing the experience for sellers and customers

The success of your business as a seller depends largely on customer satisfaction. When customers are satisfied, they are more likely to return to your store and recommend your brand to others. Buy now, pay later financing offers a seamless and instant process that leaves a lasting impression on buyers.

With solutions like ChargeAfter, shoppers can apply for financing as they are ready to check out without leaving the shopping cart. After submitting a quick application, the data is checked against various prime, near-prime, and sub-prime lenders for approval within seconds.

Thanks to the multi-lender platform offered by ChargeAfter, consumers have the flexibility to choose from various terms and rates suited to their personal budgeting needs. The ChargeAfter network of multiple lenders means a much higher rate of approval for each customer. In fact, approval rates with ChargeAfter are a staggering 85%.

By providing a checkout experience that is instant, affordable, and seamless, sellers are guaranteed to gain customer loyalty and trust, which ultimately leads to more sales for the business.

How sellers can boost sales with point of sale financing

Integrating point of sale financing into your sales strategy can significantly increase conversion rates and average order value. Embedded lending platforms like ChargeAfter offer instant financing solutions that encourage customers to spend more, knowing they have the flexibility to pay over time. This is especially beneficial for big-ticket items, where customers may hesitate to make a purchase if they have to pay the full amount upfront.

By offering in-store financing or ecommerce financing options, sellers can remove the barrier of cost for their customers. This not only helps close the sale but also encourages customers to add more items to their cart, thereby increasing the overall transaction value.

Sellers can stand out with point of sale financing

In a competitive retail market, offering embedded financing can set sellers apart from competitors. Customers are increasingly looking for flexible payment options, and by providing white label BNPL or POS lending solutions, you can attract more customers and enhance your brand’s appeal.

Embedded finance platforms allow you to offer customized financing options that align with your brand. White label POS systems enable you to offer financing under your brand name, providing a cohesive and branded checkout experience. This not only enhances brand loyalty but also positions your business as a customer-centric retailer that understands and caters to consumer needs.

Conclusion

Implementing point of sale financing is a strategic move for sellers looking to increase sales, capture a younger market, and improve the overall customer experience. By offering flexible, affordable, and seamless financing options like ChargeAfter, you can boost your sales, enhance customer satisfaction, and stand out in a competitive market.

Whether through in-store financing, ecommerce financing, or an embedded lending network, providing customers with the ability to buy now and pay later is a win-win for both sellers and shoppers.

As a small business owner, offering your customers easy access to point-of-sale (POS) financing can transform your business into a powerful revenue generator. Larger corporations and retail chains are familiar with financing portals, often offering their own in-house lines of credit. However, for many small businesses, this can prove to be a capital-intensive exercise that not only burdens you with risk but could also put your customers out of pocket due to high APRs. In addition to these challenges, more consumers are moving away from traditional lines of credit and unsecured loans, seeking more convenient, personalized financing options.

How embedded financing boosts small businesses sales

Partnering with an embedded finance platform like ChargeAfter is an affordable solution that offers seamless integration and flexibility for your business and consumers. How can point-of-sale financing from ChargeAfter benefit your business? Here’s everything you need to know:

Increase sales and order value

The most attractive benefit of offering consumer financing is the limitless possibilities to increase sales. By enabling consumers to apply for loans on the spot at no extra cost with budget-friendly payment plans, your business can close the sale quickly and easily. Some customers don’t have the cash to pay for larger ticket items like furniture or appliances upfront. However, when a business allows the customer to purchase the product using flexible buy now, pay later solutions, they are more likely to complete the purchase. According to a study, companies offering POS financing saw a 32% increase in sales.

Furthermore, with embedded financing, you can see an increase in average order value. With a track record of up to 85% approval rates and 0% APR, ChargeAfter’s financing solutions become an effective tool to upsell to your customers. By allowing customers to break down their purchases into smaller monthly payments, it persuades them to choose higher-value products. For example, when a customer browses for a handbag with a $100 budget but sees affordable shopping cart financing options, they will be more inclined to purchase the handbag they truly desire at a higher value.

Drive customer loyalty and repeat purchases

What drives a customer to complete a purchase? Affordability, transparency, and efficiency. Giving consumers the power to make purchasing decisions fosters customer loyalty and encourages repeat business. POS lending creates a positive customer experience both online and in-store. Customers can apply for the loan on the spot without the hassle of lengthy processes or long waits at the bank. The approval is immediate. Additionally, customers receive complete transparency regarding their payment responsibilities each month, with no hidden costs. Using a renowned POS financing platform like ChargeAfter addresses your customers’ needs, making it easier for your brand to build lasting relationships.

Simplifying credit checks for small businesses

There are several downsides to offering traditional in-house credit, such as store cards. For smaller businesses, setting up these options can be costly and involves a lot of unnecessary administration. It requires managing applications and performing credit checks. You would need to find a reliable credit check bureau, assess the risk of offering credit, and determine how much credit to extend to each customer. Embedded lending eliminates these challenges altogether. Your customer is redirected to ChargeAfter upon checkout, and the rest is handled by the embedded lending platform.

Access to a multi-lender network

ChargeAfter’s omnichannel lending platform gives merchants direct access to a personalized network of multiple lenders through a single user checkout system. This means your customers have a higher chance of being approved for financing. Instead of using one prime lender, the multi-lender waterfall process gives customers personalized financing options in seconds. If the customer’s application is denied by a prime lender, they are automatically redirected to a near-prime lender for a second look. If that application is denied, they are then redirected to sub-prime lenders (“lease to own”) for approval. With this range of options, your financing approval rates can increase by up to 85%.

Seamless integration and customization with white-label solutions

ChargeAfter’s innovative shopping cart financing can be seamlessly integrated into platforms like Magento, WooCommerce, Shopify, and even custom platforms. For retail stores, in-store finance options can be easily integrated with simple JavaScript or easy-to-connect extensions. In addition, ChargeAfter’s platform can be customized to match your brand identity, ensuring customers recognize and trust the experience.

The full reporting features of ChargeAfter’s embedded finance solutions give merchants access to an easy-to-use dashboard where you can view, manage, refund, and upsell products in real time with a simple click of a button. Plus, as a merchant, you get 24/7 support and assistance with all technical aspects of the platform.

Transforming small businesses with POS financing

With 85% approval rates, 0% APR, 45% increases in average order values, and a 30% increase in sales, ChargeAfter is the embedded lending network that can take your small businesses to new heights. Offering POS financing not only boosts your sales but also enhances customer satisfaction and loyalty. By implementing omnichannel financing and white-label BNPL solutions, you can meet your customers’ evolving expectations and secure a competitive edge in the market.

Buy now, pay later: Point of sale consumer financing explained.

Consumer financing has evolved significantly. Consumers increasingly gravitate towards flexible payment options like “buy now, pay later” (BNPL) point-of-sale financing. This innovative solution has shifted consumer behavior, providing more immediate purchasing power and, when implemented correctly, boosting sales for merchants.

A major cause of shopping cart abandonment is more diverse financing options catering to consumer needs. As eCommerce continues to grow, with an estimated 2.1 billion shoppers expected by 2021, there is a growing demand for personalized consumer financing solutions that facilitate instant purchasing. This is where buying now and paying later becomes crucial.

Let’s delve into how point-of-sale financing functions and its potential benefits to your business.

What is point-of-sale financing?

Point of sale (POS) financing, also known as buy now, pay later, allows consumers to purchase goods without paying the total amount upfront. Instead, they make a small initial payment at checkout, followed by a series of installments until the total cost is covered.

Although this may seem similar to traditional credit options like credit cards, it differs in simplicity and immediacy. Consumers can apply for this type of embedded financing instantly without leaving the checkout page, and they can spread the cost over several months without worrying about high annual percentage rates (APR).

In essence, buy now, pay later provides a short-term, potentially 0% APR credit line offered by single or multi-lender platforms. It is suitable for various purchases, including furniture, electronics, jewelry, travel, clothing, etc.

How do buying now and paying later financing options influence your business?

Every consumer decision impacts your business. If they complete a purchase, you’ve gained a customer; something must be addressed if they abandon their cart. Shopping cart financing can help reverse these situations for several reasons:

It appeals to a larger market.

Millennials and Gen Z have become critical demographics in the lending market but often hesitate to take on debt, particularly with credit cards. Statistics show that over 50% of Millennials and Gen Z prefer financing options other than traditional credit for large purchases. Buy now, pay later caters to this preference by offering the speed and convenience these consumers desire, increasing sales.

It offers more transparency.

Unlike traditional credit cards, online financing options such as buy now pay later offer clear payment obligations and terms. Customers know the total cost and loan duration upfront, eliminating hidden fees or surprises. This transparency builds trust and creates a seamless checkout experience, encouraging repeat business.

It is instant

Point-of-sale financing removes the inconvenience of lengthy credit application processes that take days or weeks. Advances in technology now allow for instantaneous credit checks and approvals, enabling shoppers to complete their purchases without delay.

 

Choosing the right consumer financing partner for you

Selecting the right consumer financing partner is crucial for maximizing the benefits of point-of-sale financing. A reliable partner should offer a seamless integration that suits all your customers’ credit needs, enhancing the shopping experience while boosting sales.

ChargeAfter’s multi-lender platform provides merchants personalized and instant consumer financing tailored to diverse credit needs. Shoppers receive the best and most customized financing options by employing a unique ‘waterfall’ method involving prime, near-prime, and sub-prime lenders. This method ensures a comprehensive approach, accommodating various credit requirements without affecting the customer’s credit score.

Benefits of ChargeAfter’s multi-lender platform

ChargeAfter connects merchants to a global network of lenders, simplifying the process of sourcing embedded financing solutions. This broadens the options for shoppers, catering to different types of credit profiles. Here are some key advantages:

Instant loans with high approval rates

Customers receive instant loans with up to 0% APR and up to 85% approval rates. This quick approval process increases the chances of converting potential sales and enhancing customer satisfaction.

Higher average order values

By offering buy now, pay later options, merchants can encourage customers to make larger purchases, increasing the average order value and overall sales revenue. POS financing options allow customers to buy what they need without immediate financial strain.

Seamless integration with your platform

The white-label POS system ChargeAfter offers seamlessly integrates into your existing platform, providing a cohesive omnichannel financing experience. This simplifies the checkout process and strengthens brand loyalty by keeping customers within your ecosystem.

Embedded lending and omnichannel strategies

Incorporating embedded lending into your omnichannel strategy ensures that customers receive a consistent and convenient financing experience, whether in-store or online. Embedded finance solutions like in-store financing enhance the customer journey, offering flexible payment options at every touchpoint.

Implementing a white-label BNPL solution

Choosing a white-label BNPL solution allows you to offer buy now, pay later services under your brand, enhancing customer trust and loyalty. This approach maintains brand consistency and provides a competitive edge by offering a personalized and secure embedded finance platform.

 

How to integrate point-of-sale consumer financing explained.

Integrating point-of-sale consumer financing into your business can be straightforward with the right partner. Here’s a step-by-step guide to implementing a POS financing platform:

Step 1: Choose the right embedded lending platform

Selecting a reputable embedded lending platform is crucial. Look for a provider that offers a multi-lender network, ensuring a wide range of financing options to meet diverse customer credit profiles. The platform should seamlessly integrate with your existing systems and provide white-label capabilities for brand consistency.

Step 2: Seamless integration and setup

Once you’ve chosen a platform, the integration process should be smooth and quick. A reliable embedded finance platform will provide easy-to-use tools and support for integrating the financing solution into your checkout process, both online and in-store. This enhances the omnichannel lending experience, providing customers with consistent payment options.

Step 3: Train your staff

Proper training for your staff on how to offer and explain in-store finance options is essential. They should be able to guide customers through the process, highlighting the benefits of buy now, pay later, and ensuring a positive shopping experience. This is especially important for in-store financing, where face-to-face interaction can significantly impact customer decisions.

Step 4: Promote your new financing options

Once your POS financing solution is in place, it’s essential to promote it. Inform your customers through various channels such as your website, social media, email newsletters, and in-store signage. Communicate the benefits of your new consumer financing options to encourage customers to take advantage of them.

The impact of embedded finance on sales and customer loyalty

Implementing embedded finance solutions like POS lending and BNPL white-label options can significantly impact your sales and customer loyalty. Here’s how:

Increased conversion rates

Offering e-commerce financing and in-store financing options can reduce cart abandonment rates by providing customers with flexible payment methods. When customers can buy now and pay later, they are more likely to complete their purchases, increasing conversion rates.

Improved customer retention

Providing convenient and transparent consumer financing options fosters trust and satisfaction. Customers with a favorable financing experience are more likely to return for future purchases, improving customer retention and loyalty.

Higher average spend

By offering omnichannel financing, customers feel more confident in making larger purchases. This increases the average transaction value and enhances the overall shopping experience, making it more likely that customers will choose your brand over competitors.

Conclusion: Enhancing customer experience with embedded financing

Integrating embedded lending and POS financing into your business strategy is a powerful way to enhance the customer experience, increase sales, and build brand loyalty. By choosing a comprehensive embedded lending network and implementing a white-label BNPL solution, you can provide customers the flexibility they need while driving growth for your business.

Embedded financing, explained through options like buy now pay later, reshapes how consumers shop, making it essential for businesses to adapt to this evolving landscape. By leveraging the right POS financing platform, you can create a seamless, transparent, and customer-centric shopping experience that sets your business apart.

 

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Consumer financing has been integral to retail for years, evolving with advancements in technology and shifts in consumer behavior. The rise of point of sale (POS) financing has significantly impacted how consumers make purchases, especially as online sales continue to trend upward. With more shoppers turning to e-commerce, many consumers now buy items online that they previously would have purchased in-store. According to a trends report by Attentive, this shift resulted in a 27% increase in sales in March and a 32% increase in April across various e-commerce sectors.

ChargeAfter: enhancing sales through personalized financing

ChargeAfter is transforming the consumer financing landscape by making it easier and quicker for shoppers to complete purchases. By connecting merchants with multiple lenders, ChargeAfter offers personalized point of sale (POS) financing at checkout. This platform accommodates consumers across all credit ratings—prime, near-prime, and subprime—enabling them to instantly apply for and secure Buy Now Pay Later (BNPL) financing.

Traditionally, managing lending partnerships with individual lenders has been a cumbersome task for merchants, often resulting in limited options and high decline rates during the application process. ChargeAfter simplifies this process, allowing merchants to approve up to 85% of consumers applying for financing at checkout, significantly surpassing the industry average of 30-50%.

How the ChargeAfter multi-lender platform works

The ChargeAfter platform streamlines the financing process for both merchants and consumers. When a customer selects “checkout financing” as their payment option, they fill out a simple four-field application. This application is then processed through ChargeAfter’s “waterfall.” Initially, it is checked against prime lenders. If the application is declined at this stage, it moves to near-prime or “second look” lenders. If still declined, the application is reviewed by subprime or lease-to-own lenders for additional financing offers. This multi-lender approach ensures that borrowers receive various rates and terms once approved.

Increasing sales with omnichannel financing

Competition between retailers is fierce, and ChargeAfter’s vision is to help every consumer access financing options that best fit their needs, available when and where they are ready to make a purchase—be it online, in-store, or over the phone. Omnichannel financing plays a crucial role in this, providing a seamless experience across various purchasing channels.

With embedded lending platforms like ChargeAfter, shoppers receive instant, personalized loans with favorable terms, such as 0% APR. This flexibility encourages consumers to complete their purchases, ultimately helping merchants increase sales by up to 30%. Additionally, the simplified transaction process benefits merchants, and lenders can reach new consumers while reducing integration costs.

The benefits of embedded lending networks for retailers

As consumers continue to explore new online stores, the demand for flexible ecommerce financing solutions grows. Embedded finance platforms like ChargeAfter offer merchants a competitive edge by providing choice and flexibility in payment options. By integrating white label BNPL solutions and in-store financing, merchants can cater to a broader audience, enhancing customer satisfaction and boosting sales.

ChargeAfter’s embedded lending network allows retailers to tap into a pool of multiple lenders, increasing approval rates and providing tailored financing offers. This network is crucial for meeting the diverse credit profiles of customers, ensuring more consumers find a financing option that works for them.

Enhancing customer experience with a white label POS system

Implementing a white label POS system allows retailers to offer a seamless financing experience under their own brand. This not only reinforces brand loyalty but also streamlines the checkout process for customers. By utilizing a white label BNPL solution, retailers can provide personalized financing options directly at the point of sale, both online and in-store.

Customers value simplicity and ease when it comes to financing. By offering a white label POS system, merchants can maintain control over the customer experience, ensuring that it aligns with their brand identity while providing the flexibility and convenience that shoppers demand. This integration helps in reducing cart abandonment and increasing overall sales.

The future of POS financing platforms

Embedded finance solutions is shaping the future of retail. POS financing platforms are becoming essential tools for retailers looking to stay competitive in an increasingly digital marketplace. The integration of embedded lending and omnichannel lending into the retail experience is driving a new era of customer-centric financing.

As more consumers expect instant and personalized financing options, retailers that leverage embedded lending platforms will be better positioned to capture more sales and foster long-term customer relationships. These platforms offer not just convenience but also a way to bridge the gap between consumer expectations and the purchasing process, creating a win-win scenario for both retailers and shoppers.

Building customer loyalty through in-store finance

In-store financing remains a vital component of the retail experience, even as e-commerce gains ground. By integrating embedded financing options within physical locations, retailers can enhance the shopping journey and build stronger customer loyalty. Offering financing directly in-store, whether through a white label POS system or other POS lending solutions, provides consumers with immediate purchasing power and the flexibility they desire.

The key to successful in-store finance is offering a seamless, quick, and personalized process. When consumers have access to financing options that suit their credit profiles and purchasing needs, they are more likely to make larger purchases and return for future shopping. This approach not only drives sales but also establishes the retailer as a trusted partner in the consumer’s shopping experience.

The importance of omnichannel lending for modern retail

Retailers today must adapt to the changing landscape of consumer preferences, which increasingly demand a cohesive experience across multiple channels. Omnichannel lending addresses this need by integrating financing options across online, in-store, and mobile platforms. This ensures that consumers can access flexible payment solutions wherever and however they choose to shop.

By adopting omnichannel financing strategies, retailers can provide a consistent and streamlined financing experience. This approach reduces friction in the purchasing process and helps convert more browsers into buyers. Additionally, embedded finance platforms like ChargeAfter support retailers in implementing these strategies, enabling them to meet the diverse needs of their customers and ultimately drive more sales.

The impact of embedded finance solutions on conversion rates

The introduction of embedded finance solutions has a significant impact on conversion rates in both online and offline retail environments. By integrating embedded lending directly into the checkout process, retailers can reduce the friction that often causes cart abandonment. Providing consumers with easy access to financing options encourages them to complete their purchases, even for higher-priced items they might otherwise hesitate to buy.

By offering multiple financing options through an embedded lending platform, merchants can cater to various credit profiles and preferences, ensuring a higher likelihood of approval. This flexibility not only boosts conversion rates but also enhances the overall shopping experience, contributing to increased sales and customer satisfaction.

Leveraging ecommerce financing to drive growth

Ecommerce financing has become a crucial tool for retailers aiming to drive growth in an increasingly competitive market. By implementing pos financing options such as Buy Now Pay Later and other flexible payment solutions, online retailers can make their products more accessible to a wider audience. This approach helps remove price as a barrier, allowing customers to make purchases that align with their budgets.

Integrating white label BNPL and other embedded finance options into the online shopping experience can lead to higher average order values and repeat purchases. For retailers, this means not only an increase in sales but also a stronger, more loyal customer base that values the flexibility and convenience offered through these financing solutions.

Conclusion: The future of embedded lending in retail & sales

The evolution of embedded lending and POS financing platforms is shaping the future of retail by providing more inclusive and accessible payment options. As consumer expectations continue to shift towards convenience and personalization, retailers that adopt these embedded finance platforms will be better equipped to meet the demands of the modern shopper.

By offering a range of financing options through omnichannel lending strategies, retailers can increase sales, enhance the customer experience, and build long-term loyalty. The integration of in-store financing, ecommerce financing, and white label POS systems into a seamless network creates a holistic approach that benefits both consumers and merchants. This innovative approach to embedded financing is set to become a key driver in the retail industry, enabling merchants to thrive in an ever-changing marketplace.

In light of the ongoing pandemic, retailers are working hard and taking proactive measures to ensure business progression during this time. An easy action all merchants can adopt to fuel business stability and continuity now and during the post-pandemic world is to offer consumers Buy Now Pay Later solutions.

The amount of consumers ordering online has been on the rise and that number continues to grow as many retailers are forced to temporarily close their brick and mortar locations. Providing consumers Buy Now Pay Later options make shopping more accessible due to the accommodating payment terms being offered. In turn, offering consumers Buy Now Pay Later encourages larger average order values, directly increasing revenue for the business. This payment method is becoming increasingly popular with big-named brands which means it’s also becoming an expected part of the shopping journey for many consumers. Offering Buy Now Pay Later options will provide your business with the boost it needs, here are 5 reasons why you should offer your consumers this alternative payment method. 

1. Millennials are driving BNPL

Short-term installment loans have been on the rise throughout the past 3-5 years and it’s in large part due to Millennials (individuals ages 23 – 38). The financial crisis of 2008 instilled a lack of trust in traditional financial institutions and their parents Gen X (individuals ages 40-54) and in some cases, Baby Boomers (individuals ages 66 – 75) have often warned them of the dangers of credit card debt and high-interest rates. Younger generations including Generation Z, those who are 18 years or older, are moving towards digital banking and as a result, they’re walking into their banks’ traditional brick-and-mortar branches less often than ever before. 

The concept isn’t foreign, financing has always existed for big-ticket items like appliances, furniture, jewelry, and more. Buy Now Pay Later options can be thought of as a modern version of layaway. What is new, is the instant point of sale financing available online at checkout. It’s a line of credit that is not associated with a consumer’s credit card. Shoppers may have the option to finance their purchase between a period of 6 – 48 months all while enjoying 0% APR vs. traditional credit cards that can carry 17% APR on average. As more retailers are driven to take their businesses online, Buy Now Pay Later is the easiest way to bring financing choices to shoppers. 

2. Consumers prefer BNPL over Credit Cards

Credit cards are still commonly used however consumers are no longer relying on them as a primary payment method instead, shoppers are favoring their debit cards. As a business owner, it’s naive to think most shoppers have access and/or use credit cards as a payment method. In reality, many of your shoppers may not have one. Business Insider reports 68% of Millennials do not own a single credit card! This generation accounts for the greatest share of the U.S population at 26% and the employed population at 34%, so it’s easy to understand why their behaviors and preferences will have a profound impact on commerce. 

Although Millennials are primary targets of Buy Now Pay Later, older generations are just as attracted to the idea of short-term installment loans. In a survey conducted by American Banker, 87% of respondents expressed more interest in paying for purchases via monthly installments vs typical credit cards. Consumers are increasingly demanding control of their purchasing experience. Buy Now Pay Later is great for those who do not have access to a line of credit or who don’t want to rely on it exclusively. Buy Now Pay Later is a smart option to offer today’s cautious and responsible shoppers.

3. Buy Now Pay Later Increases Sales 

The checkout process can be strenuous for consumers, any friction with the payment process or lack of payment options at the checkout will likely result in lost sales. Cart abandonment rates are one of the biggest problems online merchants face. Studies have found that 81% of shoppers abandon their carts online before they complete their purchase. A valuable way to combat cart abandonment rates and become more appealing to your consumers is by offering Buy Now Pay Later solutions that offer instant and flexible credit options from multiple lenders to ensure flawless user experience.

Imagine having a conversation with your shoppers at the point of sale and asking them what monthly price they feel comfortable paying and how long they would like the monthly payments to last. Think about the surprise and satisfaction that would bring your buyers. Point of Sale Financing or Buy Now Pay Later is essentially just that, it’s offering your shoppers choice and flexibility in payment options. 

Forrester reported that merchants who offer point of sale financing from a single lender have seen a 32% increase in sales, however, merchants who offer Buy Now Pay Later options from ChargeAfter, a multi-lender platform, have enjoyed a 45% increase in sales! Offering Buy Now Pay Later will help you maintain business stability and fuel business growth due to the accommodating payment terms offered to your consumers.

4. Buy Now Pay Later is User-Friendly 

Technological advancements are enabling consumers to be in the “driver’s seat” for their shopping experience. A transparent user-friendly experience is necessary when it comes to integrating new processes into your business. ChargeAfter’s Buy Now Pay Later platform is clear and easy to maneuver. When your consumers are ready to checkout they simply select the financing option which is offered alongside traditional payment methods. The consumer would then fill out a short financing application, after approval personalized financing options would appear. Once the shopper selects the financing terms that best fit their needs, it would be applied directly to their checkout. This whole process takes less than a minute!

When you have an online retail presence but also a traditional brick and mortar store you should ensure that you are able to offer an omnichannel financing experience. ChargeAfter specializes in customized and “in-house” platform integrations using our JavaScript and API solutions to provide a fully customized point of sale financing experience for your consumer. Shoppers can apply for financing at the end of their shopping experience whether they are in-store (at the checkout counter or through kiosks), online, or over the phone.

5. Buy Now Pay Later makes shopping more accessible 

Consumers are loyal to businesses that help them manage their relationship with credit and avoid its pitfalls. Consumers don’t mind the “buy now, pay later” model, they appreciate it. Not only will you gain a competitive advantage among other retailers but you will enable a stronger relationship with your consumers due to the accommodation being offered. In a study conducted by PYMNTS, it was reported that 74% of  US cardholders think installment plans are helpful for budgeting while 70% of consumers think installments help alleviate the stress of making large purchases upfront. In a survey conducted by Citizens Financial Group it was found that 62% of consumers would prefer fixed monthly plans with clear payment terms. The statistics demonstrate that consumers want a simple and easy experience when they make purchases. Research shows that retail brands should modernize their payment model by moving away from co-brand/store credit approaches and instead offer instant financing options at the point of sale. 

Before signing up to offer a point of sale financing from both a single lender or a multi-lender provider, knowing the platforms’ average approval rates should be on the top of your due diligence. Single lenders only focus on approving the top 35% of consumers with pristine credit which means they’re declining 70% of consumers who apply for financing at checkout. This leads to increased site abandonments, cart abandonments, and your rejected potential consumers ending up completing their purchase by your competitor. ChargeAfter is the first global lender to provide a complete solution for Point of Sale financing from multiple lenders. Merchants have the ability to offer personalized and instant Buy Now Pay Later options to shoppers across all credit tiers (prime, near-prime, and subprime) from multiple lenders. Meaning, merchants can offer 85% approval rates to their consumers who apply for financing while checking out! Imagine the impact that could have on your conversion rates! 

Will you jump on the next wave of credit?

Furniture Today announced traffic conversion and average order values are down for many retailers even though online browsing has increased at an exponential rate. Yes, some industries are prospering, specifically grocery stores, athletic gear, and furniture however, there are many industries like automotive, apparel, cosmetics, hospitality, and more that are down. Having a plan to deal with the on-going pandemic and its after-effects will be key for your business to thrive. 

Focus on your business continuity now and plan for a post-pandemic world by offering consumers Point of Sale Financing. It’s a simple solution that will help your business prosper while providing your shoppers the flexibility to help them buy items they need whether they are mid or high ticket purchases.

Buy Now Pay Later – A valuable solution for today’s online merchants & shoppers

As the coronavirus outbreak continues and “shelter in place” guidelines are extended, US eCommerce is prospering and has become the new norm. Consumers are spending more on furniture, apparel, footwear, and accessories. Data suggests that shoppers are likely buying comfortable items to work from home, diving into home improvement projects, or purchasing workout gear that will get them through the next several weeks of being confined to their households. Consumers are also taking advantage of Buy Now Pay Later options as it gives them control and flexibility over their payments. 

Furniture Today reported that online browsing for furniture alone has increased 200% within the last month, this suggests consumers are spending an increased amount of time on the internet browsing. Consumers are paying more attention to marketing messages, social ads, and more. Further research demonstrates that consumers aren’t necessarily spending less money but they aren’t spending more money either. Rather consumers have turned to make their purchases entirely online. Consumers are now looking for more viable alternatives for items they’re used to purchasing in-store and are open to purchasing more comparable products, in fact, it’s been reported that over 40% of consumers have been trying new brands. 

Businesses across the globe are being challenged to think differently about how to approach customer acquisition and retention in light of COVID-19. The best action merchants can take is to connect with their consumers on a basic human level. Educate consumers through your marketing efforts on how you are tackling COVID-19 and/or include pictures of your staff taking all the necessary safety precautions during this time. Another immediate action you can take to maintain business continuity is by offering your consumers Buy Now Pay Later solutions.

ChargeAfter enables merchants to offer Buy Now Pay Later solutions to their consumers across all credit tiers (prime, near-prime and sub-prime), this way all consumers have access to acquire the products they need, today. Imagine having a conversation with your shoppers at the point of sale and asking them what monthly price they feel comfortable paying and how long they would like the monthly payments to last. Think about the surprise and satisfaction that would bring your buyers. Point of Sale Financing or Buy Now Pay Later is essentially just that, it’s offering your shoppers choice and flexibility in payment options.

Merchants using ChargeAfter as the Point of Sale financing platform can approve up to 85% of their consumers’ applications. Shoppers will have the option to finance their purchase between a period of 6 – 48 months while enjoying 0% APR. The diverse group of global lenders ChargeAfter works with allows us to offer the highest approval rates for consumers who apply for financing. More than ever consumers are demanding flexibility in payment options, it’s necessary to adapt to buyers’ demands to fuel business stability and continuity. 

The Buy Now Pay Later option ChargeAfter provides merchants would be seamlessly embedded in their checkout process. Meaning, Point of Sale Financing would be another payment option offered alongside traditional payment methods such as Visa, MasterCard, Paypal, and more. Once the consumer selects financing as an option, the entire process would take place on the merchants’ website without any redirects to a subdomain. Forrester reported that merchants who offer point of sale financing from a single lender have seen a 32% increase in sales, however, merchants who offer Buy Now Pay Later solutions from ChargeAfter, a multi-lender platform, have enjoyed a 45% increase in sales! Before signing up to offer a point of sale financing from both a single lender or a multi-lender provider, knowing the platforms’ average approval rates should be on the top of your due diligence. Single lenders only focus on approving the top 35% of consumers with pristine credit which means they’re declining 70% of consumers who apply for financing at checkout which leads to increased site abandonments, cart abandonments, and your rejected potential consumers ending up completing their purchase by your competitor. 

When merchants meet consumers halfway by offering Buy Now Pay Later financing options, it enables a stronger relationship, and consumers are more likely to become returning shoppers due to the choice and flexibility being offered. At ChargeAfter our goal is to help your business thrive even through challenging economic conditions.