Point Of Sale Financing – How sellers benefit from it

Point of sale financing, also known as buy now, pay later (BNPL), is becoming an essential part of the purchasing journey for many consumers. For sellers, this presents a unique opportunity to enhance the shopping experience, drive more sales, and increase customer loyalty. Many consumers are shifting away from credit cards due to fluctuating payments, high APRs, and the risk of falling into debt. Offering checkout financing options can help sellers attract more customers and boost their revenue. Here are several ways point of sale financing can benefit your business and customers:

Point of sale financing attracts younger buyers

Younger buyers, such as Millennials, are driving the popularity of buy now, pay later financing options. This demographic is responsible for a total spend of $600 billion in the USA alone, which is expected to grow to $1.4 trillion this year, making up 30% of total retail sales.

Both Millennials and Gen Zs are avoiding traditional lines of credit like credit cards due to the risks and debt involved. However, they still want to purchase larger items without paying the full amount upfront. Online financing bridges this gap seamlessly by allowing shoppers to apply for an instant loan on big-ticket items without leaving the cart or checkout counter.

By offering younger shoppers the convenience of affordable payment plans, sellers can reduce cart abandonment and encourage larger purchases. POS financing is becoming an expected part of the shopping journey, especially among younger shoppers. Capturing this market by giving them more flexibility means they can more easily purchase your goods or services.

Affordable options for shoppers and sellers

Offering customers affordable shopping cart financing options like ChargeAfter benefits sellers by driving sales and increasing the average order value. The soaring debt and hefty interest fees associated with credit cards put stress on buyers. According to research, 73% of shoppers find it more stressful to buy larger items on credit cards due to expensive interest fees.

When the stress of costly monthly payments and high APRs is eliminated, shoppers feel more comfortable closing the sale and are more likely to buy higher-priced items. POS financing platforms provide a more affordable alternative, allowing shoppers to pay in installments with lower or no interest fees, making the purchase process more accessible and stress-free.

Enhancing the experience for sellers and customers

The success of your business as a seller depends largely on customer satisfaction. When customers are satisfied, they are more likely to return to your store and recommend your brand to others. Buy now, pay later financing offers a seamless and instant process that leaves a lasting impression on buyers.

With solutions like ChargeAfter, shoppers can apply for financing as they are ready to check out without leaving the shopping cart. After submitting a quick application, the data is checked against various prime, near-prime, and sub-prime lenders for approval within seconds.

Thanks to the multi-lender platform offered by ChargeAfter, consumers have the flexibility to choose from various terms and rates suited to their personal budgeting needs. The ChargeAfter network of multiple lenders means a much higher rate of approval for each customer. In fact, approval rates with ChargeAfter are a staggering 85%.

By providing a checkout experience that is instant, affordable, and seamless, sellers are guaranteed to gain customer loyalty and trust, which ultimately leads to more sales for the business.

How sellers can boost sales with point of sale financing

Integrating point of sale financing into your sales strategy can significantly increase conversion rates and average order value. Embedded lending platforms like ChargeAfter offer instant financing solutions that encourage customers to spend more, knowing they have the flexibility to pay over time. This is especially beneficial for big-ticket items, where customers may hesitate to make a purchase if they have to pay the full amount upfront.

By offering in-store financing or ecommerce financing options, sellers can remove the barrier of cost for their customers. This not only helps close the sale but also encourages customers to add more items to their cart, thereby increasing the overall transaction value.

Sellers can stand out with point of sale financing

In a competitive retail market, offering embedded financing can set sellers apart from competitors. Customers are increasingly looking for flexible payment options, and by providing white label BNPL or POS lending solutions, you can attract more customers and enhance your brand’s appeal.

Embedded finance platforms allow you to offer customized financing options that align with your brand. White label POS systems enable you to offer financing under your brand name, providing a cohesive and branded checkout experience. This not only enhances brand loyalty but also positions your business as a customer-centric retailer that understands and caters to consumer needs.

Conclusion

Implementing point of sale financing is a strategic move for sellers looking to increase sales, capture a younger market, and improve the overall customer experience. By offering flexible, affordable, and seamless financing options like ChargeAfter, you can boost your sales, enhance customer satisfaction, and stand out in a competitive market.

Whether through in-store financing, ecommerce financing, or an embedded lending network, providing customers with the ability to buy now and pay later is a win-win for both sellers and shoppers.