More payment options, more sales opportunities for you!

Competition among merchants has reached unprecedented levels. Many are exploring innovative strategies to build stronger and more personalized connections with their customers to stay ahead. These strategies include memberships, exclusive offers, coupons, or express shipping. The ultimate goal is always the same—boost sales. One of the simplest ways to achieve this is by offering consumers greater flexibility through point-of-sale (POS) financing options. Integrating consumer financing into your business opens the door to stronger customer relationships and more sales opportunities.

Changing attitudes toward credit cards

Consumer sentiment toward credit cards is shifting. A survey of over 1,000 consumers aged 22 to 44 revealed that nearly half felt dissatisfied with purchases tied to high credit card balances. The financial strain can be significant, with interest rates ranging from 18% to 29.9% and no set payoff date. In the same survey, 87% of respondents preferred paying for more significant purchases through monthly installments, appreciating the clear payment terms and defined payoff dates not tied to their credit cards.

The impact of credit card debt on sales

According to the Federal Reserve Bank of New York, credit card debt has soared to a record $800 billion. While credit cards remain popular, active accounts are lower than during the financial crisis, suggesting consumers increasingly avoid revolving debt. Millennials and Gen Z, in particular, are more cautious about spending, favoring debit cards and avoiding credit. These demographics, which will soon make up over 40% of the consumer landscape, are vital to consider as their preferences are likely to impact future sales. 63% of Millennials and Gen Z do not own credit cards, underscoring the need for alternative payment solutions.

The rise of alternative payment methods

As credit card use declines, consumers are actively seeking alternative payment methods. Research from Fifth Third Bancorp shows that Millennials and Gen Zers are increasingly comfortable taking out loans for everyday purchases or high-ticket items like laptops and vacations. Point-of-sale financing offers the perfect solution for merchants catering to these evolving consumer preferences.

Imagine being able to ask your customers questions like:

• What monthly payment are you comfortable with?
• How long do you want your financing terms to last?
• What kind of interest rate works for you?

With POS financing, merchants can offer personalized financing options that meet their customers’ needs right at checkout. This flexibility is a powerful tool that builds customer loyalty and drives higher sales.

Personalized payment options lead to increased sales

Merchants that incorporate point-of-sale financing into their business gain a clear competitive advantage by offering tailored payment solutions. Forrester reports a 32% increase in sales for companies that implement POS financing. The results are even more impressive for businesses using multi-lender platforms like ChargeAfter, with sales increasing by 45%.

The benefits for consumers are just as significant. POS financing provides clear, manageable terms, 0% interest options, and the assurance that consumers’ credit scores won’t be negatively affected as long as they make timely payments. Paying off a POS loan on time can positively impact their credit score. This win-win scenario creates a more attractive purchasing experience, leading to more frequent and significant transactions.

How POS financing affects margins and reduces cart abandonment

While the primary focus of POS financing is to drive sales, it also positively impacts other key business metrics, such as profit margins and cart abandonment rates. Offering consumers alternative payment options at checkout enhances their shopping experience and reduces the likelihood of them abandoning their cart due to financial concerns.

When customers have flexible, transparent financing choices, they are more likely to follow through with their purchase, resulting in higher conversion rates. Additionally, offering financing can help reduce acquisition costs by creating a more attractive value proposition, encouraging repeat business, and building long-term loyalty.

More payment options lead to more sales

Providing more payment options is all about creating more opportunities to generate sales. POS financing allows consumers to choose how they want to pay, making it easier to complete their purchases. The result? Increased sales, happier customers, and a more robust bottom line for your business.