Point of Sale Financing. A more convenient way to pay

The emergence of new financing options at the point of sale (POS) is transforming consumer finance. POS lending offers a seamless, immediate, and convenient credit solution embedded directly in the checkout process. When consumers are presented with this alternative option to pay, merchants often experience higher conversion rates. 74% of US cardholders report that installment loans help them manage budgets more effectively, reducing the stress of making large purchases upfront.

Why POS financing makes it easier to pay for big purchases

POS financing has become increasingly attractive to consumers by allowing them to pay for items in a way that fits their budget. Take Jake, for example. After accidentally dropping his phone, he needs a new one for $700. The challenge is that Jake doesn’t get paid for another two weeks, and even then, he can’t afford to pay the total amount upfront. While he could charge it to his credit card, he’d likely face an additional 17–29.9% APR due to preset payback terms.

Instead of using micro-financing or consumer financing, Jake can buy the phone now and pay it off on terms that fit his financial situation. With 0% APR when certain conditions are met, he might even add a pair of AirPods to his purchase, confident that he can easily finance everything.

How Savvy shoppers use POS financing to Pay smarter

Not all consumers use POS financing due to financial stress. Jane, for instance, loves shopping for the latest fashion trends and is always strategic about how she spends her money. POS financing enables her to add more items to her cart than usual, increasing her order value and allowing her to spread out payments over time.

Instead of buying three or four garments, she purchased eight items from Free People for a total of $675. Thanks to POS financing, she can pay for her new wardrobe over 6, 8, 12, or even 48 months. The merchant also benefits from this increased order value, as Jane doubled her purchase compared to what she might have spent using a credit card.

Point-of-sale financing simplifies the payment process.

POS financing is a game-changer for price-conscious shoppers and those making big-ticket purchases. Unlike traditional credit applications, which often require lengthy forms and a lot of personal information, POS financing is streamlined. The application can be completed in-store, on a desktop, or even on a mobile phone. The process is simple and fast, with just five required fields—name, address, social security number, email, and phone number.

Once completed, tailored financing options appear almost instantly. As illustrated in the examples of Jake and Jane, both consumers increased their order values without the pressure of paying the total amount upfront. This flexibility is a significant draw for consumers who seek control over their spending habits and payment plans.

Why flexible payment options boost customer loyalty

Consumers are becoming more cautious about their spending and demanding greater flexibility and control over how they pay. POS financing meets these demands by offering convenience and adaptability. For instance, purchasing a $3,905 L-shaped couch from Pottery Barn becomes more manageable when payments can be spread out over 24 months at 0% APR rather than being charged upfront to a credit card.

Borrowers today expect an easy and transparent user experience, especially regarding checkout and financing options. By offering flexible payment plans, merchants have a better chance of keeping customers satisfied and returning for future purchases. When financing is tailored to individual needs, it can enhance the appeal of a product and inspire loyalty across a range of age groups.

Point of sale financing: a more innovative way to pay

POS financing serves as a valuable tool for both consumers and merchants. It allows customers to purchase big-ticket items without the financial strain of paying the entire amount upfront. This translates into higher average order values and potentially more repeat business for merchants. As consumers increasingly look for flexible payment solutions, retailers that offer POS financing stay competitive and relevant in a changing market.

Moreover, the ease of applying for POS financing makes it a preferred choice for many. With minimal required information and instant approval, the checkout experience is smoother and faster. This convenience enhances the overall customer experience, making it more likely for them to complete a purchase rather than abandoning their cart.

Maximizing sales with point-of-sale financing options

Offering POS financing at checkout is more than just an added feature—it’s a strategic move for businesses. With the rise of online shopping and changing consumer expectations, retailers need to adapt. Traditional payment methods no longer meet the needs of today’s budget-conscious, tech-savvy shoppers.

POS financing integrates seamlessly with online and in-store checkout systems, providing customers with a flexible, easy-to-understand payment option. This drives higher conversion rates and fosters customer loyalty by giving shoppers the freedom to choose how they want to pay.