Glossary: Consumer finance

What is consumer finance?

Consumer finance is a financial arrangement that allows customers to purchase goods and services at the point of sale through different types of loan options. It offers an alternative to credit cards and cash. This method enables shoppers to manage their cash flow and make purchases that might otherwise be out of reach. Consumer finance encompasses a diverse set of financial products and services, including installment plans, Buy Now, Pay Later (BNPL), revolving credit, lease-to-own, and B2B financing to meet the unique needs of shoppers.

The evolving role of consumer finance at the point of sale

Consumer finance at the point of sale is experiencing a significant surge in popularity, marking a shift in the way individuals make purchasing decisions. The trend is propelled by new consumer financing providers, mainly fintech companies, entering the market aligning with the evolving expectations of modern consumers and their financing needs during this period of high inflation.

Recognizing the need to enhance the shopping experience, merchants are increasingly integrating consumer finance solutions directly into the point-of-sale process. This approach not only provides customers with immediate access to tailored consumer finance options but also contributes to increased purchasing power. The appeal of spreading payments over time, often with attractive terms, has resonated with a broad spectrum of consumers, fostering loyalty and satisfaction. As this trend continues to gain momentum, consumer finance at the point of sale emerges not only as a convenience but as a strategic tool for businesses looking to stay competitive and meet the diverse financial needs of their clientele.

How ChargeAfter is transforming consumer finance

ChargeAfter’s embedded finance platform revolutionizes the way consumer finance is offered:

  1. Personalized consumer finance choices: ChargeAfter ensures that customers across the credit spectrum find a financing option that suits their needs and credit profile, enhancing their purchasing power and experience.
  2. Multi-lender embedded finance platform: ChargeAfter provides a wide range of consumer finance solutions by partnering with a network of lenders. This diversity in POS lending options increases the likelihood of consumer finance approval for consumers, making consumer finance more accessible.
  3. Waterfall financing technology: ChargeAfter utilizes the waterfall financing approach. If one lender declines a customer’s financing application, it automatically cascades to the next lender. This process continues until a suitable POS lending option is found, significantly increasing consumer finance approval rates.
  4. Seamless integration for merchants: ChargeAfter’s embedded finance platform is designed for easy integration into a merchant’s existing sales process, whether in-store, online, through a call center, or any other point of sale. This seamless integration means merchants can offer consumer finance options without disrupting their sales flow or customer experience.
  5. Boosting sales and customer loyalty: By offering flexible payment options, merchants attract more customers, increase average order values, and foster long-term customer loyalty.

ChargeAfters’ embedded finance platform provides a versatile and

Consumer finance: embedded finance platform with waterfall financing for personalized, multi-lender solutions with enhanced shopping experiences

user-friendly embedded finance solution that benefits consumers, merchants, and lenders. With a personalized approach to a multi-lender system through an embedded lending network and innovative waterfall financing technology, ChargeAfter is reshaping the landscape of consumer finance, making it more accessible, efficient, and beneficial for all parties involved.