Visit us at eTails Retail Conference held at JW Marriott Desert Springs in Palm Springs, California. The event is running from 27 February 2023 to 2 March 2023.
You will find our booth at ‘Startup Valley’
ChargeAfter is a b2b FinTech omnichannel innovator of Consumer Finance. We offer flexible white-label financing solutions for retailers and online merchants.
Our consumer financing solutions enable you to offer finance wherever your shoppers are. Online, In-store, and over the phone.
eTail has been bringing together global brands and retailers since 2003 and is excited to continue gathering key industry players in a safe, collaborative, and personalized way. The event is for senior-level, omnichannel & e-commerce executives and buyers who look to remain innovative and ahead of the curve by delivering value.
The event offers access to over 1800 retail professionals, of which over 53% are Director/VP level and up, making it a valuable investment of time. eTail is a must-attend for leading e-commerce and omnichannel minds and brings together a high proportion of decision-making teams with buying power
The event consolidates leading experts in retail to share knowledge and insights on the latest industry disruptions and future trends. With a 65% retailer attendance rate, it is the only event in the industry that has more buyers in attendance than sellers.
Furniture industry research specialist Dana French conducted the Consumer Insights Now research, which was released in September and was co-sponsored by ChargeAfter. The consumer finance study highlights customer behaviors across age groups (18-74). The primary goal of the research was to identify customer preferences and trends which would provide furniture sellers with useful information.
The survey provides data on how buyers often use consumer financing in a variety of ways. The research’s results include the kinds of goods they want to purchase, how they intend to finance such purchases, and how the furniture fits into their overall shopping list.
The research gives furniture retailers all the information they need to know about customer trends right now. For both new and established retailers looking to offer the precise services that customers want, the data may be of tremendous assistance. Especially when the study displays a variety of consumer behavior statistics.
The study emphasizes once more how essential consumer financing has become to our daily lives and how it affects every significant purchase made by a customer. Numerous survey results show that younger customers are more inclined to utilize consumer financing in their everyday life which is evidence that retail finance has become popular in recent years.
The survey’s findings could help retailers understand the value of customer financing in the furniture industry. It may be a signal for them to introduce additional buy-now, pay-later (BNPL) loans or POS financing alternatives.
The results of the survey also revealed which age group is the most significant group of consumers and which of them must be the primary category of potential customers. As a result, the data may be used by retailers to create a precise marketing strategy for upcoming sales and ensure that customers will have access to the financing choices they require. When properly applied, research may boost sales and conversion rates for shops.
How Consumers Plan To Pay
According to the chart above, different age groups have different plans for how they will make their payments, or use consumer finance solutions. Although the numbers for customers who use credit cards and those who prefer to pay with cash are practically identical, we can see that younger groups are slightly biased towards cash payments. Due to their familiarity with traditional banking services and installment payments, older generations are more inclined to utilize credit cards for payment.
In contrast, younger Millennials and Gen Z tend to choose Buy Now Pay Later services from financing platforms when it comes down to consumer financing options available to them.. There are two potential causes for this. Namely, younger consumers may like BNPL since it offers superior services and the benefit, occasionally, of no interest charges, or are often unable to qualify for credit cards because they do not yet have a solid credit score. Similar considerations apply to cash payments, which are often made from savings accounts and are more frequently made by older generations.
Are Consumer Financing Options And Promotional Terms Important To Consumers?
Promotional terms are significant to 49% of customers overall for home goods, whereas financing options are important to 43% of customers when we compare how financing choices and promotions trigger the purchase for the consumers. The younger generations of Gen Z are the only age group, as shown in the table above, that is more likely to make a purchase when the shop offers financing choices at the point of sale. However, this is not true for other age groups. Only 27% of Baby Boomers believe that financing alternatives at the store are the reason to make a purchase, according to the lowest numbers for consumer finance.
Though the comparison is close across practically all age groups, younger generations are more influenced by both possibilities and are more likely to purchase as a result. As we can see, promotional conditions are an excellent instrument for boosting sales and luring customers. Conversely, the businesses that choose to use both of the proposed solutions will succeed the most and draw in the most number of customers.
As shown, the Consumer Insights Now consumer finance survey provides the exact data and facts furniture retailers require to develop effective new tactics and know which consumer financing solutions to use.
The way retailers construct their marketing strategies and how customers shop have all been disrupted by digital technology, which is the main reason why the world of retail is very different today than it was just five years ago. Consumers now use their smartphones to see product reviews and compare prices. In other words, it is now a lot simpler for consumers to make informed decisions. The same is true for the financial component. The form of funding the buyer chooses has altered as a result of the changes in consumer financing over the past few years.
For example, the usage of BNPL lending has increased drastically after the pandemic hit, and the trend is still going as BNPL has become a kind of habit for consumers:
SOURCE: CORNERSTONE ADVISORS
As shopping patterns continue to change, let’s examine how brands may develop and apply next-generation marketing tactics to enhance the customer experience with different consumer financing options in the upcoming years.
Why Is Consumer Financing Necessary
Retailers struggle to select the best consumer financing option due to the wide range of options available. As the usage of consumer financing is increasing every year, it is impossible to have a successful business without it.
So why is consumer financing so important?
To increase sales – you can offer customers lower prices, promotions or discounts on your products, but it’s becoming more attractive to consumers to pay full price if they have the option to finance their purchase and split the payment. Using lending services has become a part of our merchant offering, and consumer lives.
In addition, clients can split payments over time without incurring any costs thanks to current financing solutions. Because of this, BNPL lending and POS financing are among the most popular types of consumer finance available today. Many times, even though a person has sufficient funds on hand, they still choose to employ a BNPL or installment loan, for instance. There is a simple reason behind it, wise use of financing options increases their purchasing power and allows consumers to have an extra amount in their accounts to feel secure and be ready for any emergencies.
Because of this, funding choices are now available for products and services like furniture. home improvement, vacation, autoparts, education, and many more, as an integral part of the shopping experience.
The Increased Popularity Of Omnichannel Consumer Lending
Consumer financing has become more popular overall during the past ten years. More consumers frequently use lending services to obtain the funds required for shopping or unexpected expenses. According to the statistics, consumers favor BNPL loans or point-of-sale financing solutions. Consumer financing choices give consumers freedom, and if they’re used appropriately, they make it much easier for them to manage their finances. However, online financing isn’t the only instrument that can help the buyer have a positive purchasing experience. Customers who prefer local shopping or need a product that was nearly hard to select or purchase online required retailers to adjust to their needs.
For instance, if a customer wants to purchase a new mattress or any other type of furniture, they may want to physically inspect it to ensure that they are making the appropriate decision. Therefore, when a customer went to a store after seeing the retailers’ pleasant financing options online, they had to have the same financing experience there. For situations like that, retailers offer in-store financing. To provide the buyer with the same comfortable shopping experience, several furniture stores, including Raymour & Flanigan, are now leveraging the POS financing and BNPL lending features via an omnichannel multi-lender platform.
Point-Of-Sale Financing
POS financing has evolved into one of the key tools for consumers, making it seamless to access flexible lending options, , and younger generations are also the main customers here.
Source: TransUnion US Consumer credit Database
The fact that customers receive the quickest and coziest method of financing is one of the reasons the service has become so well-liked. It usually only takes a few seconds to apply and receive the funds you require when reputable third parties are involved. It also allows customers to receive the best financing options: Installments, Revolving loan, BNPL or LTO (Lease-to-Own) are amongst the most popular examples of financing.
Potential Problems For Retailers
Since the economy has begun to expand again in recent months, retailers have faced difficulties on both the top and bottom lines as a result of some sales growth that has slowed and margins that have shrunk. In the future, the industry will probably have to contend with a more difficult growth environment in addition to higher expenses. In addition to the rising cost of goods, retailers must also deal with increased costs for everything: from production inputs to freight, fuel, and labor. Although inflation hasn’t yet had a significant effect on nominal consumer spending, we are starting to notice the first indications of a future slowdown. Despite unprecedented inflation in the first quarter of 2022, US consumers kept their wallets open. Considering that US consumers had almost $3.3 trillion more in funds than they did in 2019, the increase in consumer spending was maybe not unexpected. Many people didn’t hesitate to use their savings when credit constraints loosened. And it hasn’t only been the savers who have been spending; credit card debt is also starting to increase.
Consumer financing is undergoing the same changes, so retailers are currently juggling two issues at once. Although the increase in prices and inflation has forced customers to use additional financing choices, it has also made them more anxious and made it more difficult to decide whether to apply for extra loans. Consumers are increasingly attempting to use financing services with caution and only select the ones they trust the most.
To ensure that customers are receiving the services they desire when they visit a retail website or physical location, retailers must now pay close attention to consumer behavior and implement innovative consumer financing features.
If retailers take risky, thought-out actions, they can turn these difficulties into opportunities. Businesses that do very well during recessions often outperform their competitors over the ensuing ten years
3 Ways Retailers Can Combat The Demand For Consumer Financing
1. Be On Every Channel
According to TIDIO statistics, various customers utilize POS financing and BNPL in-store and online in different ways. Online services are not preferred by all customers. Some customers prefer to purchase goods and services from brick and mortar establishments.
This once more demonstrates the need for consumer financing solutions like POS financing or BNPL lending across all channels. Whether it will be for customers who choose to shop in-person at the neighborhood store or for online users on websites or mobile applications.
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2. Offer Simple And Clear Financing
According to the findings of Citizens Point of Sale Survey, 76% of American consumers are more inclined to make a retail sale if a payment plan is supported by an easy and smooth point of sale experience. The survey found that 62% of respondents would like fixed monthly contracts with unambiguous payment terms, and a good understanding of how the sum will be paid off as the most crucial elements. Additionally, 66% of customers believe they already have sufficient credit cards and would rather avoid adding an additional credit card merely to make a large purchase. This suggests that customers seek a different option than applying for a new credit card to make a sizable purchase at a store. Retail brands can modernize their payment solutions by moving away from the store credit approach and adding simple financing options to their customers.
3. Offer White-Labeled Consumer Financing
Consumers are flocking to private-brand products in the current market to combat inflation. Retailers should periodically reevaluate their category strategies in order to take advantage of this. Successful stores will strike a balance between fast-changing consumer tastes and pressures from individual inflation rates. This would need to reconsider their balance of national and private brands.
Consumers planning a major purchase viewed trust in the organization providing the financing and this is one of the main reasons they like branded lending platforms over independent FinTech firms. It demonstrates how retailer brands can profit from branded white-label financing solutions to attract more customers. As consumer financing has gained popularity, a wider range of independent businesses now provide these services.
Additionally, financing platforms like ChargeAfter, provide customizable white-label financing options. This allows the merchant to change the financing software however they see fit while still giving customers the financing options they need and demand.
Choosing The Right Consumer Financing Company For Your Store
Ready to provide your clients with immediate financing? Great! But which should you pick? It’s difficult to single out the top consumer financing providers because so many fintech firms provide BNPL products. Having said that, there are some qualities to consider while selecting a BNPL and consumer financing providers:
Positive customer experience: Businesses need to be able to deliver satisfying user experiences. For instance, ensure a smooth checkout experience would help prevent cart abandonment. Since over 80% of shoppers leave their carts empty before making a purchase, financing and BNPL ought to have superb integration to your customer journey. User-friendly features and no interruptions during checkout help decrease cart abandonment.
Perfect payment plans: By offering a variety of payment options, retailers open up their products to more people, which can increase sales and brand loyalty. Customers and business owners alike can benefit from high flexibility. Any retailer can act as a lender thanks to financing platforms. A financing platform gives shoppers the freedom to choose their financing conditions based on sophisticated risk assessment models. Customers will be able to select from a variety of payment plans, without having to worry about not being approved.
Reduced risks: Flexibility and scalability are features that reputable consumer finance businesses can provide. You may increase sales, draw in new clients, and maintain existing ones by making it simple for people to finance the goods and services, but risk management should always be taken into account. Make sure to work with providers with low MDR (Merchant Discount Rate) and can provide the best interest rate for your customers. In addition, make sure the PoS financing solution of your choice has cutting-edge management including managing reconciliation, chargebacks and dispute resolution.
Helps you control Data: Lastly, reputable BNPL and PoS financing solutions ought to assist retailers in regaining control over consumer data in addition to streamlining payments. This would enable retailers to better understand what customers want, need, and like. Advanced financing solutions don’t just permit retailers to give clients financing options, but give the retailers the ability to safeguard user information, and build long-lasting relationships with customers.
Summary
In the end, we can say with certainty that consumer financing is still an evolving industry, and that brands must stay on top of emerging trends to ensure they offer the services that customers want. If not, retailers won’t be able to take full use of financing options. Therefore, we can conclude that both the retailers and the financing platform are involved in the process and that it is not a one-party job.
About ChargeAfter
ChargeAfter is a leading multi-lender platform for Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides consumers with the best shopping experience. MUFG, VISA, Bradesco, BBVA, Synchrony, CITI Banks are among the investors of ChargeAfter.
Multi-lender network and data-driven platform streamlines checkout and helps top furniture retailer meet consumer demand for flexible, personalized financing
NEW YORK, Oct. 20, 2022 /PRNewswire/ — ChargeAfter, the market-leading point of sale (POS) consumer financing platform and network, has been selected by Raymour & Flanigan, the Northeast’s largest furniture and mattress retailer, to power point-of-sale financing online and in over 140 brick & mortar locations. Raymour & Flanigan’s focus on providing exceptional customer experiences led it to partner with ChargeAfter’s data-driven decisioning engine and network of lenders. ChargeAfter will streamline the customer experience and enable enhanced customer engagement with Raymour & Flanigan’s flexible, personalized financing options.
With a single integration, ChargeAfter will connect Raymour & Flanigan’s current prime, near-prime, and sub-prime lenders, allowing the integrated process to approve up to 85 percent of customer applications. During checkout, customers will complete a single, quick application and instantly receive the best approved financing offer based on their unique credit profile and needs. ChargeAfter will integrate seamlessly with Raymour & Flanigan’s point of sale system and devices in-store, allowing customers to apply on Raymour & Flanigan’s customer-facing technology or a personal mobile device. This improved flexibility, simplicity, and ability to get customers approved is anticipated to help Raymour & Flanigan grow its financed sales by 25% in the coming years.
“The customer experience is tremendously important to our business, and increasingly we’re seeing that consumers want access to more personalized and flexible financing options without the stress of being declined or having their credit checked by multiple lenders,” said Chris Lloyd, Head of Payment Solutions at Raymour & Flanigan. “ChargeAfter gives us the power of a fully branded financing experience, and expands our reach by allowing us to offer customers personalized financing regardless of where they want to shop. With ChargeAfter, we have the peace of mind that our point-of-sale financing is powered by a proven platform and deep industry expertise, so we can focus on giving our customers a superb furniture buying experience.”
With ChargeAfter, Raymour & Flanigan will be able to provide a range of financing products outside of their existing private label credit card and lease to own options, including potentially card-based installments, BNPL, and B2B financing, all with a single integration. ChargeAfter will also supply Raymour & Flanigan with access to real-time performance and transaction reporting as well as the ability to settle, upsell, refund and partially credit transactions with the click of a button. This access will be 100% managed and controlled by Raymour & Flanigan and they can make decisions or changes in real time to immediately influence performance or reporting.
“We’re honored to partner with one of the most well respected and established furniture retailers in the United States,” said Mark Denman, EVP of Merchant Sales & Success at ChargeAfter. “As consumer preference for point-of-sale financing continues to grow, Raymour & Flanigan sees that having the ability to meet those needs for the full credit spectrum will be critical to their success. As the macro environment continues to evolve, we expect to see more retailers consider enhanced options to transact and expand their reach, desire an increase in sales, and meet the financing needs for more customers. ChargeAfter is the provider to seamlessly execute this opportunity, without the headache of multiple technical integrations with lenders.”
Powered by a data-driven decisioning engine and network of global lenders, ChargeAfter delivers the most relevant financing offers to consumers from multiple lenders based on credit type – resulting in approvals for up to 85% of applications. ChargeAfter streamlines the distribution of credit into a single platform that retailers can implement rapidly both online and in-store. The company’s growing lender network offers seamless integration to lenders seeking to grow their customer base while expanding into new retail markets.
ChargeAfter investors include The Phoenix, Citi Ventures, Banco Bradesco, Visa, MUFG, BBVA, Synchrony Financial, PICO Venture Partners, Propel Venture Partners, and Plug and Play VC. ChargeAfter is headquartered in New York and has a research and development center in Tel Aviv visit https://chargeafter.com/about-us.
About Raymour & Flanigan:
Raymour & Flanigan is the premier furniture and mattress retailer in the Northeast. Now in its 75th year of operation, the company serves over 1 million customers annually through its website and 140 stores across 7 states. Through decades of growth, Raymour & Flanigan believes as strongly as ever in its mission to enhance the customer shopping experience.
Raymour & Flanigan believes strongly in its associates and in the communities it calls home. The company has been certified as a Great Place to Work for three consecutive years, and has built a culture of respect and support for its over 6,000 associates. In addition, over 600 in-store events are held in an average year to raise funds and awareness for causes ranging from disabled Veterans to children’s hospitals, school programs and food pantries. Furthermore, in-house recycling centers allow the recycling of 99% of packaging materials, diverting over 200 million pounds from landfills since 2002.
Based in Syracuse, New York, Raymour & Flanigan is a family owned and operated company. For more information, please visit https://www.raymourflanigan.com/about-us.
The coronavirus epidemic in 2020 and 2021 forced firms to reevaluate and speed up their digitization initiatives more than ever. Years-long planned digitization efforts were finished in a matter of months. These modifications will remain as we move deeper into 2023.
The fintech industry, in particular how established companies involved finance on a different level by integrating financial processes into their whole company plan, is one of the most famous examples of digitalization. With an expected market price of above $138 billion in 2026, it’s obvious that the embedded finance age is here to stay and not simply a passing trend in finance.
What is Embedded Finance?
It can be difficult to grasp what this term actually means for individuals who are just getting familiar with the idea, as it is with any new ideas. The use of financial instruments or services by a non-financial provider, such as loan or payment processing, is known as embedded finance. An electrical retailer, for instance, might provide point-of-service insurance for items purchased in-store.
Consumer financial processes will be streamlined through embedded financing, making it simpler for customers to access the services they require when they do. In the past, customers might have needed to physically visit a bank branch to request credit in order to make a significant purchase. Thanks to embedded finance, they can now do both at the same time at the point of service. ChargeAfter, Amazon’s EMI financing choices, Klarna, and Applepay are some of the best-known examples of embedded finance.
The simplicity of embedded finance for consumers is one of its main advantages. Customers could be more likely to finish a purchase and enjoy customer pleasure, which is crucial for fostering brand loyalty, if pain points experienced by consumers are eliminated, such as the requirement to seek credit elsewhere. Because customers are more inclined to buy something and return to do so often, firms may have the possibility to boost profits.
But ease isn’t the only benefit of embedded finance. It also serves as a tool for a greater understanding of consumers, their requirements, and their purchasing patterns. Later, this information can be used to motivate more corporate growth.
Five types of Embedded Finance
1.Buy Now Pay Later (BNPL)
Modern consumers are opening a new line of credit thanks to buy-now, pay-later services. Consumers are empowered to shop differently when they have access to a greater variety of items that can be paid for overtime, whether they decide to spend more on a newborn’s travel system or a higher-end piece of home equipment. The consumer is given the option to divide the payment in order to avoid large transactions
2.Point-of-Sale Financing
Integrated lending, goes a step further with loans. Businesses looking to fund larger or more substantial purchases can integrate these financial instruments. To be able to lend responsibly, they frequently need more information, such as information on creditworthiness.
In contrast to BNPL lending, POS financing offers a suite of financingproducts such as B2B financing, Installments, revolving line of credit and even lease to own. Additionally, the application process is more pleasant and the application form is simpler. POS financing has grown in popularity with omnichannel and brick and mortar-retailers. For instance, Raymour and Flanigan, one of the major furniture merchants, recently began collaborating with ChargeAfter to equip its retail locations and online business with point-of-sale financing.
3. Embedded Insurance
Customers may wish to make certain that, should the worst occur, their money won’t be wasted while investing in a new good or service. Integrated insurance comes into play in this situation. Businesses are in a better position to provide insurance fast by integrating insurance finance technologies.
4.Trading and Investment
Users can connect with their physical bank to make investments in a way that suits their current financial condition and spending patterns thanks to embedded finance capabilities in investment applications. This is an illustration of how a different sort of financial services provider has used embedded finance.
A fintech API called fintech-as-a-service enables businesses, including non-financial ones, to integrate financial functionality into their current goods, services, and programs.
The use of financial technology-as-a-service products in a whole is growing, from billing to customer acquisition and all in between.
Using Embedded Finance
Creating an embedded financial strategy that meets their customer demands can be the first step for businesses. This entails assessing your digital requirements and choosing the tools you want to integrate. Identifying your company’s objectives for its integrated finance initiative is the first stage in that process.
These could include initiatives like enhancing customer service, expanding an existing clientele, or starting a new business to cater to a particular target market or demand. For instance, if you want to enhance client loyalty, one strategy to consider is embedded payment.
For some customers, a BNPL model might increase access to products or services. You could find it simpler to establish yourself as a one-stop-shop concept with embedded finance. But before choosing the best option, you must first be aware of your needs.
Connect Lenders and Consumers
If your business is a retailer, connecting consumers with a variety of lenders can also help you. For this reason, ChargeAfter developed a platform wherein a network of global lenders are assigned to any point of sales, connecting them to customers who want to finance.
ChargeAfter is a leading multi-lender platform for Point of Sales Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees personalized lending to every shopper, by matching the most relevant lender to every client. Using the unique network and technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.
Arvind Ronta, the Global Head of Installments at VISA, discussed in an interview at Money 20/20, how the company is revolutionizing the way cards operate and positioning itself as the industry leader in installments.
VISA seeks to provide a platform that will enable banks to offer installments at the point of sale more effectively as consumer financing and BNPL services change. By connecting lenders with a vast number of merchants, they can global acceptance, allowing the Buy Now Pay Later loan to be used anywhere. FinTechs, such as ChargeAfter, play a significant role in expanding BNPL and consumer financing options and giving merchants the opportunity to provide it in all types of point of sales – ecommerce, in store and call centers.
As banks began to work with BNPL white label platforms of FinTech companies, they gave merchants shops the option to offer various branded financial services, which all encourages the development of embedded finance. Visa strives to offer a platform and a product that both consumers and business owners will enjoy and use.
“Disclaimer: This article’s information is provided for educational purposes only and shouldn’t be taken as legal advice on any subject. The author disclaims all responsibility for any damage of any kind caused by the use of such information.”
Consumers are increasingly turning to Buy Now Pay Later (BNPL) or POS financing to purchase items or services and spread out their payments over time with a preset payment plan.
A recent poll found that during the COVID-19 outbreak, 60% of participants used a buy now, pay later service. 66 percent of respondents stated that they believe adopting buy now, pay later services to be “financially dangerous” at the same time. This is probably because services that let customers purchase items now and pay for them later might lead to overspending. Services that let you buy now and pay later may give the impression that an item is less expensive than it is. If shoppers indulge themselves, they could accumulate more credit than they can manage.
Important Data for BNPL
In 2022, there are expected to be 59.3 million BNPL users. The amount of BNPL customers has been sharply rising over time, driven in part by the financial difficulties associated with COVID and in part by the proliferation of BNPL businesses.
This line of credit is adaptable and simple to qualify for. For example, 45% of customers said they picked BNPL because paying with it was simpler than using a credit card, while 44% claim they did so because it offers more flexibility.
BNPL Use by Age
Age
BNPL User Percentage
18-24
61%
25-34
60%
35-44
61%
45-54
53%
54+
41%
BNPL Use by Average Household Income
Average Household Income
BNPL User Percentage
>$35,000
39%
$35,000-$49,999
47%
$50,000=$74,999
50%
$75,000-$99.999
43%
>$100,000
41%
People between the ages of 18 and 24 and 35 to 44 are the most likely to finance BNPLs. In general, younger age groups utilize BNPL more frequently. The income range of $50,000–74,999 is the one most probably to use BNPL. Customers in this range and those above it utilize BNP at around the same rates.
According to the most recent statistics, BNPL loan usage decreases as income and age rise. However, the trend suggests that this pattern is changing, and more and more individuals are beginning to use BNPL lending, which is hurting traditional banking products.
Top Reasons for BNPL Usage
Reasons to Use BNPL
Percentage of Users
Out of Budget Purchase
44.98%
Avoiding CC Interest
36.92%
Borrow Money
24.73%
Avoiding to Share Personal Data
20.79%
Credit Card Alternative
19.18%
Reached Credit Card Limit
17.2%
Can’t get CC
14.16%
No Bank Account
7.71%
Other
5.73%
Generally, purchasing clothing and electronics is the most frequent usage of a BNPL plan. The most frequent reason for selecting a BNPL plan is to make an expensive purchase.
Amounts People Owe to BNPL
Amount owed
User Percentage
Less than 100
28%
101-250
18%
251-500
25%
501-1000
17%
1001-2500
9%
2501-5000
2%
More than 5000
1%
BNPL Companies
Not just businesses and consumers benefit from BNPL loans; BNPL service providers also make significant profits. Even if the majority of the top financing platforms don’t charge consumers any additional fees, they nevertheless make money from the merchant companies that use their services to run their online storefronts. Simply defined, BNPL services are simple to use, but difficult to produce and secure. As a result, rather than developing a new system on their own, retailers employ the established and reliable financing systems of BNPL companies to increase their sales and conversion rates. Additionally, it draws a lot more customers overall.
Instead of just employing basic BNPL services, merchants and retailers are increasingly turning to the newly created and deployed BNPL white label services. Retailers can adopt BNPL services and do so under their name by using ChargeAfter’s white-label services. They get considerably better outcomes from branded BNPL solutions, which also improves the reputation and overall attractiveness of their business.
ChargeAfter’s BNPL Financing Platform
ChargeAfter’s Waterfall financing increases the chance of approval — up to 85%.
Additionally, ChargeAfter is constantly improving and working to provide its merchants and banking partners with the best and most up-to-date services. According to Meidad Sharon, CEO of ChargeAfter, in an interview with Fintech Blueprints, the system is updated at least montly, and by the end of this year, they intend to increase the number of lenders to further ensure that every customer can get the financing they need.
The global lending platform of ChargeAfter is up for the title of best BNPL solution. The fact that ChargeAfter is a finalist among other financing platforms demonstrates once more that the non-stop development work being done to build the best financing system and offer retailers the best BNPL (Buy Now Pay Later) services are succeeding, and the ChargeAfter financing platform continues to hold the top spot among the industry’s pioneers in both the consumer financing and BNPL sectors. There are several factors, which we will go through, that make ChargeAfter’s lending platform a finalist for the Finovate awards and a strong contender to win the competition as well. Firstly, let’s discuss what is Finovate and Finovate Awards.
About Finovate
Finovate is a technology firm for financial services that was founded in 2007 and has since grown and extended internationally. It is a business that organizes conferences only for the purpose of displaying the greatest and most cutting-edge new bank and financial technologies. To address topics and subjects pertinent to local and international financial markets, Finovate expanded its approach. Leading financial and traditional executives typically attend huge, highly effective audiences at Finovate conferences. Informing consumers and delivering news about new, powerful Fintech companies and banks is another one of the company’s primary responsibilities. It has emerged as the primary source for individuals to learn about breaking financial news.
About the Finovate Awards
In addition to other services and conferences, Finovate also hosts the Finovate Award Ceremony, where smart and innovative businesses are recognized. More than 25 categories, including Best Fintech Partnership, Best Mobile Payment, and Best BNPL Solution, in which ChargeAfter’s financing platform is also nominated, honor fintech businesses and banks.
ChargeAfter: The Nominee for the Award
No one was surprised to see ChargeAfter among the finalists for the best BNPL solution award because the financing platform has advanced quickly this year. ChargeAfter’s global lending platform was nominated for the Finovate Awards primarily due to its growing market acceptance, development of new connections, and expansion of its core advantages.
Many merchants have recently found ChargeAfter’s BNPL lending services to be appealing and have embraced them, which has improved their performance and revenue. The ChargeAfter BNPL platform improves conversion rates for merchants and increases sales as well.
Along with providing services to shops, ChargeAfter has also assisted banks in keeping up with the quick development of consumer finance and Buy Now Pay Later services. Fortiva Retail Credit expanded its collaboration with ChargeAfter this year after seeing a significant improvement in its business. It also encouraged other banks to try and use ChargeAfter’s BNPL white label services, which have been altered to meet the requirements of any retailer business or bank.
The Financing platform is constantly evolving, and as ChargeAfter CEO Meidad Sharon stated in an interview with The Fintech Blueprints, the company has plans to expand the number of lenders on the platform to make its standout feature, Waterfall financing, which is full of reliable lenders, even more, powerful and provide consumers with guaranteed financing opportunities.
