How To Boost Easter Sales With Point Of Sale Financing

It felt like Christmas just the other day, but Easter is already lurking around the corner. Easter is a major holiday with a major track record of sales in the eCommerce space. Ecommerce sales are expected to increase by 19% during the Easter period by 2022! 

If you haven’t already thought of your Easter sale strategy, here are some ideas to get more eCommerce sales this year.

Buy Now Pay Later (BNPL)

Before we dive into fun marketing strategies, it is important to have as many payment options available to your consumers, which includes offering Buy Now Pay Later (BNPL) or also known as Point Of Sale consumer financing. This will enable your customers to spoil their friends and family this Easter without maxing out their credit cards or burying themselves under a mountain of debt. The more flexible financing options you offer, the more likely you are to increase sales and Average Order Values.

Engaging Initiatives

A great way to get your shoppers to engage with your brand is to create exciting initiatives like a digital egg hunt. You could hide eggs on different pages of your site and encourage shoppers to find them all for a prize. The prize could be an add-on to an order such as a free gift or free delivery. By doing this, you are encouraging shoppers to browse your store at the same time. They may be hunting for the eggs but may also stumble across a product if yours they really want at the same time. 

Create Urgency

Daily sales are a great way to encourage shoppers to purchase on your website. You could offer a chocolate bundle for 20% off for one day only, or you could also offer free delivery for a certain period of time. You can experiment with different sale items and discounts during the build-up to Easter to see which strategy works best for your audience. 

Create Specials For The Occasion 

Holidays are the perfect excuse to create deals and specials for specific items in your shop. It is also a great time to push back stock from previous seasons by reducing their prices or offering them as free gifts after customers have spent a certain amount with your store.

It is also important to think about what your audience will be doing over this holiday period. Will they be staying at home with their family? Do they have children who will participate in Easter egg hunts? Is your audience the type to spend this time away on vacation? Once you have figured out the demographic and behavior of your customers you are able to create personalized specials on the products they will be more likely to purchase over this period. 

Be Prepared

In order to be successful over the holiday period, it is important to be prepared for it. This means optimizing your website and ensuring all bugs and broken links have been addressed. Add banners and images relative to the holiday to get customers in the Easter spirit. Making sure you have enough inventory is absolutely crucial. You don’t want to create disappointment especially if customers are lining up to get their hands on your goods. Being prepared and stocking up on inventory will go a long way in ensuring your Easter is a successful one for your eCommerce business! 


The Different Types Of Shoppers And How To Encourage Them To Purchase From Your Store

Everyone is different and when it comes to shopping experiences, everyone is looking for a personalized shopping experience that caters to their wants and needs. In order to fuel business growth, it is important to know who these customers are and how to engage with them in a way that encourages them to support your brand. With the massive shift in consumer behavior, it may seem like it is more difficult than it’s worth, but once you have connected with these categories of shoppers, they will turn into loyal repeat customers. 

The Active Shoppers

These are the shoppers that have a steady enough income to buy the things they want. They have a live-in-the-moment attitude and don’t mind spending their earnings on products they have their heart set on. While these shoppers understand the current financial climate, they are still more focused on keeping up with trends, spending most of their time browsing social media for product inspiration. This group spends a lot of their online time using their mobile devices and is more likely to shop on purchase through mobile apps.

How To Attract This Type Of Shopper:

  • Since this group spends a lot of time browsing social media, your content should be engaging, interesting, and valuable meaning that your posts should offer your followers value. 
  • Invest in optimizing your website and mobile apps. These types of shoppers are all about the online user experience and giving them one that meets their expectations will go a long way in gaining you a loyal customer. Work on load speeds, use attractive graphics, and ensure all your payment gateways and point of sale financing or Buy Now Pay Later (BNPL) options are easy to use and safe. 

The Trendsetters

These customers don’t earn as much as the active shopper, which means they are always on the lookout for the best discounts and deals. Trendsetters are always up to date with the latest pop culture and fashion trends and find most of their product advice and inspiration from social media. 

How To Attract This Type Of Shopper:

  • Forget about generic deals and discounts. These shoppers are looking for personalized deals that cater to their wants and needs. Follow your analytics closely to see what kinds of items these shoppers are into and create a deal they can’t resist without affecting your bottom line. This could include buy-one-get-one-free deals for beauty products for specific brand names. 
  • Offer Buy Now Pay Later (BNPL) instant financing options. This will enable this group of shoppers to get the goods they want without having to pay the total amount upfront. Point Of Sale from ChargeAfter also allows your shoppers to get the best financing deals based on their unique financial situations thanks to our waterfall financing solutions

The Sustainable Shopper

These shoppers are more focused on values instead of the latest fashion or product trends. They resonate with brands with social responsibilities and an eco-conscious outlook when it comes to materials, packaging, and formulas. These shoppers prefer longevity over most things trending on social media. 

How To Attract This Type Of Shopper:

  • Use your website to educate and give back. This can be done by setting up initiatives that give back to a cause when shoppers purchase your goods. 
  • Invest in sustainable materials and packaging. Ensure your product and packaging can be recycled. 
  • Be clear about your values and what your company stands for. Create content that is engaging and also aids in educating for a better cause. 

The Family-Centric Shopper

This shopper puts family first when it comes to budget and time. Their attention is solely on their family and household. While they are up to date with current affairs, they do not spend as much time online. This type of shopper may also abandon carts more frequently either because their online time has been interrupted or that the basket may have totaled more than what they budgeted for. 

How To Attract This Type Of Shopper:

  • Time is valuable to this shopper and is not always a luxury they have. Ensure that you offer a quick and enjoyable omnichannel experience in order for these shoppers to get the goods they want in what little time they have. 
  • This shopper is more open to exploring new ideas that are easy to recreate, which is an opportunity you need to jump on. Create inspirational mailers with personalized discounts that help this shopper find the best fit for their needs. This content can include anything from outfit inspirations to family health and wellness pantry ideas. 

Why ChargeAfter Is The Best Consumer Financing Solution For Your Online Store

Choosing the right financing solution and payment gateway for your online store is one of the most important factors to consider. Choosing the right one means that AOV’s, revenue, and repeat customers will start increasing. Choose wrong, and this may lead to more abandoned carts! 

ChargeAfter’s Point of Sale consumer financing solutions allows online businesses to increase AOVs by up to 45% and increase sales by up to 30% without compromising the shopping journey or sending your customers into a downward spiral of debt!

Putting You And Your Customers First

Your online payment and consumer financing options should be a symbiotic relationship, meaning that it works for you and your customer. And most importantly, it should be as user-friendly as possible and come with as little risk as possible for both parties. Here are some ways in which ChargeAfter can help elevate your online business and assist in building long-term relationships with your customers.

Consumers Can Shop At Anytime 

Gone are the days of waiting for payday to roll around! There used to be a time where the only options available for payment online were credit cards and debit cards. And if you didn’t have a positive balance in your account, then the goods you wanted to purchase had to wait until the following payday. This was not only frustrating for the consumer, but online retailers had to brave the dry spell – that awfully slow period between bill payments and the middle of the month! With ChargeAfter’s Buy Now Pay Later (BNPL) solutions consumers are given the freedom to purchase from your store and pay for the products in interest-free, affordable monthly installments instead of laying out the total amount right then and there. 

Higher Buy Now Pay Later (BNPL) Guaranteed Approval Rates 

Applying for credit has to be the most tedious process known to man! The forms, the long wait, and the uncertainty are common pain points surrounding credit applications. It is a lot of effort to go through especially when there is no guarantee that the application will be approved. From a consumer perspective, this does not bode well for a great shopping journey. From the merchant’s perspective, every rejected credit application means one less sale for your business.

The ChargeAfter application process takes a fraction of the time – a few minutes to be exact. And your customers don’t even have to leave the checkout page to apply. It is a simple process that requires minimal information and zero paperwork. Approval rates are also higher thanks to our unique waterfall financing structure!

More Choice

For consumers, signing up for a credit card means they have to agree to the lender’s terms, which, let’s be honest, rarely suits everyone’s unique financial needs. The interest rate offered is high, the payback and installments fluctuate, and there is no room for negotiation on these terms. 

With ChargeAfter’s unique waterfall financing, consumers have more choices and flexibility. With this multi-lender approach, retailers are able to offer a diverse range of financing options ranging from prime to subprime lenders. This enables consumers to pick the best terms and payback structure, giving them more confidence to purchase your products and also make purchases of a higher value! This equates to more sales and higher average orders for your business!

The Bottom Line

ChargeAfter is a secure and innovative payment solution that has your business and consumer needs top of mind. With our seamless integration, diverse consumer financing terms, and higher approval rates your business can reap the rewards of more repeat customers, higher AOV’s, and more sales! 

Idle Sleep & ChargeAfter – Making Quality Sleep More Accessible With Buy Now Pay Later

It is estimated that around 70 million Americans suffer from sleep disorders. Being chronically deprived of sleep is caused by numerous factors including poor nutrition, demanding lifestyles, increased stress, and back pain to name a few. While there are many things to address when it comes to sleep disorders, one thing that has helped numerous people, especially those who have chronic back and muscle pain, is investing in a high-quality mattress. Unfortunately, purchasing a brand new mattress is not a luxury most can afford. It is a large expense that can certainly set anyone back in terms of their monthly budget and putting the cost on a credit card is not always feasible either. Depleting your entire limit may prove to not be the wisest choice as situations out of our control do arise and having the financial back up from a credit card can help consumers get out of those difficult situations. 

However, Idle Sleep is now able to address these issues by making high-quality mattresses more accessible thanks to ChargeAfter’s tailor-made Point Of Sale Consumer Finance solutions

Who is Idle Sleep? 

Idle Sleep is a Top 10 direct-to-consumer mattress retailer. An Idle Group, and Idle Group Asia brand, was founded by mattress and bedding industry veteran Craig Schmeizer whose vision is to deliver affordable and high-quality mattresses, sleep, and furnishing solutions globally.

What Was The Challenge?

As a pioneer and innovator in mattress and sleep solutions, Idle Sleep’s goal is to provide every consumer with an equal opportunity to enjoy quality sleep. As an eCommerce brand, Idle Sleep had to place its digital and payment experiences at its core in order to provide an unparalleled online shopping experience. With a reported 63% of Millennials and GenZ-er’s not owning credit cards, delivering a full payment and the sub-par experience related to traditional credit was becoming increasingly challenging as more consumers were being declined for financing by alternative POS partners and driving up both website and cart abandonment rates.

The main challenge faced by the Idle Sleep team was to replace the increasing number of credit declines by offering more approvals while also maintaining the brand’s unique user experience and checkout flow on their WooCommerce based site.

ChargeAfter’s Solution

Following extensive research into various Point Of Sale finance partners, Idle Sleep chose to partner with ChargeAfter, allowing them to offer complete tailor-made consumer financing solutions from multiple lenders during the shopping session and at checkout. All of which was done by using a single application. After effortlessly integrating ChargeAfter’s waterfall-based consumer financing platform into Idle Sleep’s WooCommerce site, ChargeAfter replaced the previous financing partner with a diverse network of leading prime, near-prime, and subprime lenders that are able to deliver equal and attainable financing offers for every consumer across the FICO band, which ultimately leads to more approved applications.

The Results

Using ChargeAfter’s network of lenders as well as the seamless user checkout experience, the results showed a 700% increase in financed transactions as well as a 668% increase in financed volumes over a period of 60 days! To break it down across our unique waterfall of lenders, there was an increase of 51.7% from prime lenders, a 35.8% increase from near-prime lenders, and a 12.5% increase from sub-prime lenders. 

Based on the figures above, it is easy to see why ChargeAfter is the preferred partner for your Point Of Sale Financing solutions on your website and in your store!

Bridging The Gap Between Fashion And Price With Buy Now Pay Later

There is no doubt that there has been a boom in the popularity of eCommerce in recent months due to the current pandemic. While some companies have profited during the global Lockdown, many have seen a drop in sales, particularly in the luxury fashion and skincare space. The reality of the situation is that most luxury fashion brands have not addressed the elephant in the room when it comes to the gap between price and flexible payment options. 

The fashion space is one of the fastest moving industries that revolves around serving customers and searching for the next best thing. For most, keeping up with the latest trends in fashion and beauty is simply too expensive, especially when it comes to the younger generations. While they are the clients that are more likely to update their wardrobes and skin regimes more frequently, they are also the clients that have the least money to fork out upfront. Not to mention that the younger generation is warier about accumulating debt on credit and in-store cards. 

With the current situation, increasing job losses, and student debt many of the younger population are facing, offering financial flexibility can help bridge the gap between the desire for instant gratification and price points in the fashion space. Buy now pay later, also known as Point Of Sale financing is quickly becoming a solution to the problem mentioned above, and most fashion houses and beauty gurus are jumping on the wagon.

Buy Now, Pay Later – A Powerful Customer Acquisition Tool 

Previously, loans were reserved for mortgages and car purchases, however, the new Buy now, pay later loan model has started to cater to other goods and services including furniture, electronics, travel, and now fashion and beauty. Larger brands like Urban Outfitters, Nike, La Mer, and Drunk Elephant have embraced the power of Point of Sale financing by offering instant loans on products that can be paid back over a few months. But it’s not just about the financial flexibility for consumers, it also about maximizing your brand’s potential and reaching new heights within the space. 

Consumer financing is a powerful customer acquisition tool. With affordable payback plans offered by the multi-lender network sourced by ChargeAfter, your luxury brand becomes more accessible to a wider net of people. Online financing has become one of the easiest ways to acquire new customers without dropping prices, which leaves brands out of pocket. 

Cart abandonment is also a serious concern within the space and with the online fashion industry expected to generate a whopping $7 billion in online sales by 2022, it is important to stay ahead of the competition by reducing the rate of abandoned carts on your website. This is yet another solution Buy now, pay later provides. In the case where your products are more expensive than others, you are still able to outshine competitors while also keeping your customer’s financial situations top of mind. Previously, getting a customer to spend $200 on a pair of pants or face cream may have been a challenge, but now that Point of Sale financing is available to merchants, it is a lot easier to close the sale. 

Buy Now Pay Later – The Future Of Luxury Fashion Brands

Easing the financial strain for customers goes a long way in building your brand. Providing them with instant loans and affordable payback plans will have a significant impact on all aspects of your business. From increased average order values to sales and lower customer acquisition costs, there is no shortage of benefits when it comes to partnering with an innovative online financing platform like ChargeAfter!


Maximize every sale opportunity with point of sale financing

Maximize every sale opportunity with point of sale financing

Furniture is the backdrop to our lives, it enhances the space we live in while communicating our attitudes and personality. Until recently, shoppers felt the need to go to a physical store when purchasing big-ticket items such as beds, couches, desks and more. That, however, is changing due to the ease and growth of eCommerce. Are you aware 81% of consumers start their shopping journey online? The internet allows consumers to research, compare, and purchase products anywhere they are in the world. With the rise of eCommerce, traditional in-store point of financing has also moved online. 

Point of sale financing, also known as POS Financing, checkout financing, consumer financing, micro-financing, and point of sale lending or “buy now pay later” is beneficial to all parties involved. It is an alternative payment method for consumers. Instead of racking up a huge credit card bill, consumers are able to receive financial solutions at the point of purchase in order to assist them in buying the products or services they need. Point of sale financing is a quick solution for mid to high dollar value checkouts and dividing a purchase into easy and affordable payments.

Benefits for merchants who offer point of sale financing to their consumers include:
-Positive customer experience
-Higher conversion rates
-Increase in AOVs (average order value)
-Widen customer base
-User-friendly experience

Consumers are favoring their debit cards, they are well aware of the burden credit cards can demand especially when considering interest rates vary from 18-29.9%. Are you aware that once a consumer surpasses the 30-40% utilization mark of their credit cards, the credit score starts to decline because credit bureaus notice the consumer is reliant on credit instead of hard cash or debit? Point of sale financing helps remove friction for shoppers who struggle to qualify for personalized loans or who do not have the desire to apply for or use credit cards. Point of sale financing is a form of personal loan that is not associated with a consumer’s credit card, so credit scores will actually rise with set on-time payments.

Did you know there has been an increase in short-term installment loans within the last 3-5 years? Visa’s chief economist states he is, “seeing a massive increase in alternative lending,” about 70% of purchase installment loans are short-term. Only lasting on average anywhere between 3 – 12 months. It’s understandable why 74% of US cardholders think installment plans are helpful for budgeting and 70% think it helps alleviate the stress of making a large purchase upfront. Point of sale financing enables a stronger relationship between merchants and consumers. 

Take a look at this example: 
John just moved into a new home and is ready to invest in some furniture. He is not in financial distress but he likes to strategically shop to select items that fit his needs and budget. The first thing John wants to splurge on is his home office, he adds a Moon Rock Gray Sutherland Chair to his cart with a price of $243. The next two items John adds to his cart is a Boutwell Velvet Square Arm Sofa costing $733, and a U-Shape Executive Desk costing $790. His total is currently at $1,766. At checkout, John was planning to put the total amount on his credit card, however, he’s already feeling hesitant as the items he chose are more expensive than planned. John’s credit card utilization is already at 25%, not to mention his interest rate is 23% considering this is the very first credit card he’s had. John thinks about taking an item off his shopping cart but he notices the merchant offers financing as a way to complete the purchase, immediately John is intrigued. He selects the alternative payment option instead. John fills out the short financing application, and finally once approved personalized financing options appear. All of this took about one minute of his time! John has the option to finance his purchase between a period of 6 – 48 months, he selects the 12-month financing option, meaning, the monthly fee comes out to be $147 with 0% APR! John decides the total is not bad at all, so he continues his shopping journey due to the accommodating terms the merchant is offering. John ends up selecting three Pine Lake reading floor lamps for $65 each and a Filipek coffee table for $140. The customer’s total now reaches $2,101.  John continues with point of sale financing as his payment method, he keeps the financing terms at 12 months so the monthly fee will now only be $175. 

In the example provided, John is ecstatic because he was able to purchase more items than he originally planned for due to the financing option available at checkout. John didn’t have to use his credit card so he has funds remaining for a rainy day and he will not have to worry about high-interest fees. Point of sale financing allowed John to have a personalized payment plan. The customer is able to receive his products without any hold-ups and the merchant is happy because of the increase in order value. 

Did you know that merchants who offer point of sales financing to their consumers see a 32% increase in average order value? In fact, merchants who offer point of sale financing from a multi-lender platform like ChargeAfter enjoyed a 45% increase in AOVs and a 35% increase in site-wide sales. 

Stand out from your competitors

Stand out from your competitors

As a furniture retailer, there can be a wide range of challenges that come your way. Some of those challenges can include, dealing with fierce competition, trying to get more foot traffic in your store or finding a way to get people to spend more on high-ticket items. Either way, the end goal is geared towards increasing conversion rates. Here are 4 innovative ways that can help furniture merchants generate more sales. 

1. Build a brand that people search for

Content marketing comes in all different forms, there are blogs, webinars, social media posts, and more! When consumers come across your content they are meeting you for the very first time. It’s important to be light, educational and helpful to anything you think they may need that is related to your brand. Content marketing generates demand and there is a low-cost per acquisition. Take a look at this example, the brand Purple, a successful mattress and bedding company has reached great fortune through content marketing. OverthinkGroup reported that every month there are about 250,000 Google searches for the word “purple” and there are a bit more searches for the word “mattress” however, “purple mattress” is researched on Google 400,000 times a month! There are more searches for the direct brand name compared to generic product names or categories; 71% of Purple’s organic traffic comes from branded research!

Digital strategies have become an essential part of every retailer’s playbook but it can drive up costs, fast! According to Retail Dive, Google’s CPC has risen 14% in the last year. Keywords such as “best couch” or “best dresser” are no longer effective.

You may be asking yourself, so what?
Purple’s marketing content is consistent, in fact, they have over 150 blogs posted on their website. This number doesn’t include PR or social media posts either. Each article provides insightful information that’s both, directly and indirectly, related to their products. Creating consistent marketing content brings awareness to your brand and expresses the goodwill your company has to offer. All consumers use the almighty search engine, Google. To maximize your organic traffic become a brand consumers search for through your unique content marketing efforts.

2. Add coupons or a promo code page

Costs for furniture can range anywhere from a couple of hundred dollars to a few thousand dollars. At checkout, whether in-store or online, consumers are always looking or asking for some type of discount code. You’ll typically find customers quickly conducting a Google search before checking out to see if they find any promotional codes available online or they’ll use extensions like WikiBuy which is a platform that hunts the web instantly for discount codes. Instead of having this happen, capitalize on it!

Think about creating a page on your website where consumers are able to receive exclusive promotions or discount codes just by signing up for your newsletters. According to OverthinkGroup, Purple’s discounts and promotions page was one of their top three valued SEO pages. A promotions page will be beneficial because you have the opportunity of providing interested shoppers with discount codes, but even better, you have the opportunity to inform them about your products through newsletters and creative email marketing.

3. Send out catalogs

You may be thinking, “Catalogs, they’re outdated!” Nonetheless, it is an addressable channel that helps with one to one targeting which can be very effective for furniture retail. Catalogs play an important role in fueling brand growth beyond Google, Facebook and Instagram as these channels are pretty saturated already.

In recent studies from the Data & Marketing Association, response rates for catalogs have increased over the years. Partly because less mail is being sent out, especially for Millennials who currently happen to like catalogs more than any other age group. It’s a unique approach because this generation has received less mail than any other. In fact, American Catalog Mailers Association, Hamilton Davidson said half of all Americans order from catalogs even if they do not immediately flip through the mailers.

Did you know sending out catalogs are inexpensive when ranked against other forms of marketing? Davidson discusses how web shoppers are price-driven while catalog consumers are generally brand enthusiasts. It’s important that catalogs be sent out to those most interested in your brand. In fact, Data & Marketing Association’s O’Keefe stated, Costco prints catalogs regularly and the content inside differs from consumer to consumer making it unique to a person’s shopping trends. Catalogs are another avenue of opportunity to catch consumers who are interested. Now imagine combining this with your digital marketing strategy!

4. Offer Point of Sale Financing at checkout

Point of sale financing is for merchants who want to offer their customers financial solutions at the point of purchase to assist them in buying the products or services they need whether they are everyday needs or big-ticket items. POS Financing is an immediate and convenient credit granting process for consumers that is seamlessly embedded in the checkout process. At the point of checkout, whether the consumer is in-store, online, or completing an over the phone purchase they would have the option to select the financing option. It is offered alongside traditional payment methods such as Visa, Mastercard, Discover etc. The consumer then continues to fill out a short financing application. The application is then checked among the lenders available and once approved, financing options appear. The consumer then selects the option that best fits their needs, the financing is applied directly to their checkout. The best part? Consumers are able to enjoy their products immediately!

Did you know one of the biggest hurdles eCommerce merchants face across all industries is cart abandonment rates? 81% of consumers abandon their carts online! Consumers may be overwhelmed with their order value, the checkout process may be too complex or there may be a lack of payment options available. Point of sale financing can help combat all of these issues, it is simply a different payment method that helps consumers reach the same purchasing goal.

Let’s paint a picture:
Heather wants to furnish her new apartment which has a fantastic view of the San Francisco skyline. The sofa she wants is a Dresden Sectional Sofa costing $3949.  Heather hesitates to charge the amount on her credit card as the interest rates vary from 18-29.9% additionally, there is no set pay backdate. It may take a year or it may take two years for Heather to pay her credit card off while being hit with high-interest fees. Heather notices a financing option available at checkout. Heather fills out the financing application directly on the merchant’s website which takes about one minute of her time, then once approved, a variety of financing options appear. Heather has the opportunity to finance the sofa over a period of 6, 12, 18 and 48 months with 0% APR if terms are met. Heather decides 18 months is the best option for her, the monthly fees will only be $219! Heather is satisfied with the amount and decides to additionally purchase a Truman Coffee Table costing  $849. Her total is now at $4798, Heather still sticks with financing both products over a period of 18 months, the monthly total will now be $266.55! Through consumer financing, Heather increased her order value without thinking twice! She has the instant gratification of using the products immediately all while having a personalized payback plan. With the flexibility point of sale financing has to offer, it is easy to understand why consumers are more drawn to the alternative payment method.

The furnishings industry allows consumers to make their desired space truly their own. Incorporating multiple ways to generate sales in your business will help your company reach its fullest potential. This generation of shoppers like brand transparency and accommodation. Don’t just fuel your business to grow, motivate your shoppers to make the best purchasing decisions to fulfill their needs.



Furniture & POS Financing, Plan for the Future While Gaining a Competitive Edge

The “Global Home” goods industry is the manufacturing, distribution, and retail of home furniture. This includes household decorative accessories, soft furnishings (draperies and curtains), appliances, cookware, and gardening equipment. During the economic recession of 2008, the global home industry was negatively impacted because consumers held back on non-essential spending, this put off many home improvement projects due to lower disposable incomes. 

All consumers were impacted by the recession throughout the mid to late 2000s. It changed consumers’ attitudes about spending money, in particular, it affected Millennials and the way they view credit till this very day. The crisis split the generation into two distinct groups. The first group is made up of older Millennials, they dealt with the financial crisis directly along with Gen X and Baby Boomers. They were faced with a tough job market and wage stagnation which made it difficult to save money. The second group is made up of younger Millennials, this group experienced the recovery period. They entered a better job market and have become risk-averse by watching the recession unfold. Both groups were plagued by financial problems which is something Gen X and Baby Boomers did not face at their age. From saving to spending, and financial behaviors in between, attitudes have changed drastically among consumers. Were you aware the net worth of Americans ages 18-35 has decreased by 34% since 1996? According to The Washington Post, Millenials are financially worse off than older generations. In fact, CNBC reported middle-class life is now 30% more expensive than it was 20 years ago, in particular rent and the cost of college. There are signs of economic recovery and consumers have begun to spend comfortably again, however, consumers are taking back control and are demanding more flexibility in their payment options. 

You may be asking yourself, why is this important?
Consumer shopping trends are changing. Many young adults have been reminded of the burden credit card debt entails by their parents (Gen X and Baby Boomer in some cases). It’s necessary for all merchants to acknowledge that Millennials and Generation Zers have favored debit cards, in fact 63% of Millennials and Generation Zers do not own a single credit card and they will be making up more than half of the consumer landscape starting in the mid-2020s.  Think about how the declining use in credit cards could affect your sales. Offering point of sale financing to your consumers can help remove friction for buyers who struggle to qualify for personalized loans or who do not have the desire to apply for credit cards. Short-term installment loans have been on the rise within the past 3-5 years. American Banker reported 87% of surveyed respondents expressed interest in paying for large purchases via monthly installments.

Consumer financing, also known as point of sale financing, is a different purchasing method to the same end result for all shoppers. Point of sale financing is a line of credit that is not associated with a consumer’s credit card. At checkout, customers would have an additional payment option alongside traditional payment methods, like Visa, Mastercard, Paypal etc. Once the customer selects to checkout with financing, the consumer would fill out a short four field financing application directly on the merchant’s website with no redirects to a sub-domain. Then, the financing application goes through a “waterfall” of lenders to provide customers with the best-personalized financing offers for them. Customers may have the option to finance their products over a period of 6, 12, 18 and even 48 months with equal payments all while receiving 0% APR when the terms are met. The point of sale financing platform ChargeAfter provides, offers merchants with 85% approval rates for their consumers due to a network of global lenders.

Point of sale financing is appealing for more reasons than avoiding a big charge upfront, it allows consumers time to budget and plan for future payments all while receiving their products immediately. POS financing allows consumers to purchase their everyday needs or high-value items. Merchants who utilize point of sale financing from ChargeAfter enjoyed seeing a 45% increase in their average order value. Think about the positive impact offering your customers point of sale financing at checkout could have on your business. All parties benefit when point of sale financing is brought into play.