Point Of Sale Financing – How Sellers Benefit From It
How Sellers Can Benefit From Point Of Sale Consumer Financing
Point of Sale financing, also known as buy now pay later is becoming an essential part of the purchasing journey for most consumers. While some may still find that putting larger expenses on credit cards is a convenient payment option, many people are avoiding this payment option altogether. With the fluctuating payments, expensive APRs, and risk of falling into uncontrollable debt, it is not hard to see why credit cards and in house store cards are becoming the last resort for many consumers. Not to mention the lengthy process of applying for the credit in the first place.
Offering your consumers checkout financing options is a sure-fire way to get more sales and increase your customer base. If you are considering convenient Point of Sale financing like ChargeAfter, here are a few more ways your business and customers can benefit from this option:
Point Of Sale Consumer Financing Captures Younger Generations
Younger buyers such as Millennials are the generation behind 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. This will make up a staggering 30% of total retail sales.
Both Millennials and Gen zs are steering clear of traditional lines of credit such as credit cards due to the risk and debt involved. However, they still want to be able to purchase larger items without laying out the total amount upfront. Online financing bridges this gap seamlessly by allowing your shoppers to apply for an instant loan on big-ticket items such as furniture without leaving the cart or check out counter.
By offering younger shoppers the convenience of affordable payment plans, they are more than likely going to close the sale without abandoning cart or removing items from their basket. As we mentioned earlier, POS financing is becoming an expected part of the shopping journey, especially among younger shoppers. Capturing this market by putting buying power back in their hands means that they have more flexibility when it comes to purchasing your goods or services.
Point Of Sale Consumer Financing Is Affordable For Shoppers
By offering your customers affordable shopping cart financing like ChargeAfter, it benefits you as the seller by driving sales and increasing the average order value. The soaring debt and hefty interest fees that come with purchasing big-ticket items on credit cards put an extraordinary amount of stress on buyers. In fact, according to research, 73% of shoppers find it more stressful to buy larger items on credit cards due to the expensive interest fees. When the stress of expensive monthly payments and high APRs are eliminated, shoppers feel more comfortable closing the sale and are more likely to buy an item for a higher price tag.
Point Of Sale Consumer Financing Improves Customer Experience
The success of your business as a seller all boils down to your customers. When your customers are satisfied, they are more likely to return to your store and recommend your brand to others. Buy now, pay later financing is a seamless and instant process, which will leave a lasting impression on buyers. With ChargeAfter, shoppers have the option of applying for financing as they are ready to check out without ever 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, your consumers have the flexibility to choose from various terms and rates that are suited to their personal budgeting needs. In addition to the freedom of choice, the ChargeAfter’s network of multi lenders means that there is a much higher rate of approval for each customer. In fact, approval rates with ChargeAfter is a staggering 85%!
By giving your users a checkout experience that is instant, affordable, and seamless, you are guaranteed to gain their loyalty and trust, which ultimately means more sales for your business