Tag: Furniture Financing

Buy Now Pay Later (BNPL) Stats for 2022

Posted on by chargeafterdev

Consumers are increasingly turning to Buy Now Pay Later (BNPL) or POS financing to purchase items or services and spread out their payments over  time with a preset payment plan.

A recent poll found that during the COVID-19 outbreak, 60% of participants used a buy now, pay later service. 66 percent of respondents stated that they believe adopting buy now, pay later services to be “financially dangerous” at the same time. This is probably because services that let customers purchase items now and pay for them later might lead to overspending. Services that let you buy now and pay later may give the impression that an item is less expensive than it is. If shoppers indulge themselves, they could accumulate more credit than they can manage.

Important Data for BNPL

In 2022, there are expected to be 59.3 million BNPL users. The amount of BNPL customers has been sharply rising over time, driven in part by the financial difficulties associated with COVID and in part by the proliferation of BNPL businesses.

This line of credit is adaptable and simple to qualify for. For example, 45% of customers said they picked BNPL because paying with it was simpler than using a credit card, while 44% claim they did so because it offers more flexibility.

BNPL Use by Age

 

Age

 BNPL User Percentage

18-24

61%

25-34

60%

35-44

61%

45-54

53%
54+

41%

 

BNPL Use by Average Household Income

 

Average Household Income

 BNPL User Percentage

>$35,000

39%

$35,000-$49,999

47%

$50,000=$74,999

50%

$75,000-$99.999

43%
>$100,000

41%

 

People between the ages of 18 and 24 and 35 to 44 are the most likely to finance BNPLs. In general, younger age groups utilize BNPL more frequently. The income range of $50,000–74,999 is the one most probably to use BNPL. Customers in this range and those above it utilize BNP at around the same rates.

According to the most recent statistics, BNPL loan usage decreases as income and age rise. However, the trend suggests that this pattern is changing, and more and more individuals are beginning to use BNPL lending, which is hurting traditional banking products.

 

Top Reasons for BNPL Usage

 

Reasons to Use BNPL

Percentage of Users

Out of Budget Purchase

44.98%

Avoiding CC Interest

36.92%

Borrow Money

24.73%

Avoiding to Share Personal Data

20.79%

Credit Card Alternative

19.18%

Reached Credit Card Limit

17.2%

Can’t get CC

14.16%

No Bank Account

7.71%

Other

5.73%

 

Generally, purchasing clothing and electronics is the most frequent usage of a BNPL plan. The most frequent reason for selecting a BNPL plan is to make an expensive purchase.

Amounts People Owe to BNPL

 

Amount owed

User Percentage

Less than 100

28%

101-250

18%

251-500

25%

501-1000

17%

1001-2500

9%

2501-5000

2%

More than 5000

1%

 

BNPL Companies

 

Not just businesses and consumers benefit from BNPL loans; BNPL service providers also make significant profits. Even if the majority of the top financing platforms don’t charge consumers any additional fees, they nevertheless make money from the merchant companies that use their services to run their online storefronts. Simply defined, BNPL services are simple to use, but difficult to produce and secure. As a result, rather than developing a new system on their own, retailers employ the established and reliable financing systems of BNPL companies to increase their sales and conversion rates. Additionally, it draws a lot more customers overall.

Instead of just employing basic BNPL services, merchants and retailers are increasingly turning to the newly created and deployed BNPL white label services. Retailers can adopt BNPL services and do so under their name by using ChargeAfter’s white-label services. They get considerably better outcomes from branded BNPL solutions, which also improves the reputation and overall attractiveness of their business.

 

ChargeAfter’s BNPL Financing Platform

 

ChargeAfter’s  Waterfall financing increases the chance of approval  —  up to 85%.

As a result, merchants and financial institutions are using ChargeAfter’s BNPL white-label services to increase customer retention and maintain a competitive edge in the consumer financing sector.

Additionally, ChargeAfter is constantly improving and working to provide its merchants and banking partners with the best and most up-to-date services. According to Meidad Sharon, CEO of ChargeAfter, in an interview with Fintech Blueprints, the system is updated at least montly, and by the end of this year, they intend to increase the number of lenders to further ensure that every customer can get the financing they need.

References:

Haughn, R. (2022, July 8). 2022 Buy now, pay later statistics. Bankrate. https://www.bankrate.com/loans/personal-loans/buy-now-pay-later-statistics/

 

Want to learn more? Reach out to us here.

Help Your Customers Design Their Dream Home With Financing for Furniture From ChargeAfter

Posted on by chargeafterdev

Whether customers are kitting out their brand new tiny home or moving into a new house, designing their dream home requires investment and consumers are cautious about how they spend when putting together a forever home. Fortunately, interior design and furniture eCommerce stores can attract these skeptical buyers as they make considered purchases with financing for furniture from ChargeAfter. 

In this article, we explore how retailers can take advantage of the powerful consumer financing solution from ChargeAfter to help customers shop with their stores as they aim to design their dream homes. 

What is Financing for Furniture from ChargeAfter?

ChargeAfter is one of the leading service providers of consumer financing solutions. Consumer financing solutions, or point of sale financing, is a system whereby customers can receive instant financing for their online purchases. ChargeAfter provides a comprehensive network of lenders to businesses that choose to integrate the powerful consumer financing platform. With this platform in place, online interior design and furniture stores can offer their customers seamless access to financing at checkout to purchase their dream home items. Financing for furniture is incredibly beneficial as it allows customers to buy what they want when they want it and online retailers receive payment upfront and in full. 

Below, we explore how your store can benefit from financing for furniture from ChargeAfter as you aim to help customers design their dream homes. 

Give Them Financing On Your Site

One of the benefits of ChargeAfter’s furniture financing solution is that customers do not have to leave your store for financial support. Customers will not have to consult their financial service providers or have to go through credit checks in order to buy their favorite furniture items. Allowing customers to shop your products without having to leave your site keeps them engaged with your brand for longer and more inspired to integrate your items into their dream home. This has the dual benefit of giving them a source of financing that they may need and encourages them to shop other items while they are browsing your store. 

Turn Your Store Into a One-Stop-Shop

Another benefit of furniture financing from ChargeAfter is that the zero-interest repayment solutions entice larger orders from customers. Having eliminated the worry of paying back exorbitant loans on expensive items, your business facilitates a faster time to purchase as well as greater order values. Inevitably, you can shape your business model around being a one-stop furniture store for designing one’s dream home as shoppers can have affordable access to the financing necessary to kit out their entire home in one go. This is possible as ChargeAfter’s system connects consumers with lenders capable of facilitating their unique furniture requirements with no additional payments or interest.

Build More Aspirational Consumers

Furniture retail is a competitive online industry that requires eCommerce platforms to set themselves apart while turning a profit. Through the integration of consumer financing from ChargeAfter, you can inspire more customers through aspirational marketing. This works as those aspirational interior design goals are achievable through the reliable and comprehensive consumer financing plans supplied by ChargeAfter’s lenders to your consumers. You can, as a result, gives customers a greater sense of confidence and freedom when shopping your store and help them achieve the interior that they dream of.

There are many benefits to adopting financing for furniture solutions from ChargeAfter on your online store. Doing so can help your consumers easily achieve their dream home in no time at the best price possible, positioning you as the aspirational leading eCommerce platform for home interiors. 

How ChargeAfter’s Buy Now Pay Later WooCommerce Platform Promotes Large Ticket Sales

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Despite the many benefits of buy now pay later solutions, thousands of WooCommerce platforms are yet to adopt these powerful consumer financing integrations and, as a result, hinder themselves when it comes to increasing average order volumes, improving customer retention, and promoting sales rates. With ChargeAfter’s revolutionary buy now pay later WooCommerce plugin, online retailers can experience these benefits and more within days. In this article, we will discuss how leveraging this particular buy now pay later solution can encourage growth with regards to promoting large ticket sales.

How Large Ticket Sales Improve WooCommerce Business

Large ticket sales are the cornerstone to WooCommerce business success as they amount to far greater return on investment, improvements in large ticket sales drive up average minimum order values, and they supplement inevitable poor-performing months in a WooCommerce’s sites yearly calendar. The benefit of encouraging large ticket sales cannot be ignored, yet many retailers fail to facilitate the efficient and consistent purchase of these expensive items. It would be wise for retailers to pinpoint new tools to facilitate the sustainable purchasing of expensive items, and one crucial method is through consumer financing.

ChargeAfter has, to meet this need, developed a buy now pay later platform that offers consumers incredible, tailored financing to ensure they are capable of making large ticket purchases. The benefit of a multi-lender platform ensures that no customer turns away during the checkout process and abandons their cart. 

How Buy Now Pay Later WooCommerce Solutions Drive Large Ticket Sales

The reason that ChargeAfter’s buy now pay later WooCommerce solution is so successful is because it utilizes a multi-lender platform that other similar services on the market do not. This means that customers are funneled through a reliable lending platform until they are matched with a lender capable of fulfilling their unique consumer financing requirements. Featuring no credit checks and an array of lenders with minimal to no interest rates, customers shopping with ChargeAfter-integrated WooCommerce stores are more inclined to accept consumer financing for large ticket purchases.

Buy now pay later WooCommerce solutions offer customers several other significant benefits that may help promote the sale of large ticket items. We have outlined these in more detail below:

Improved Customer Loyalty for Large Ticket Sales

Customer loyalty plays a pivotal role in large ticket sales as customers who trust your brand are more likely to make big orders than those shopping for the first time. To ensure that customers become loyal shoppers, you need to provide many novel touchpoints on their consumer journey. This is especially true during the checkout stage, and ChargeAfter’s buy now pay later solution is one of the most powerful checkout plugins to drive large ticket sales through encouraging customer loyalty. This is because this platform is reliable, trustworthy, and eases consumer challenges during their shopping experience. 

Stronger Brand Image for Greater Order Values

As consumers become more skeptical of brands, your company image is important when punting large ticket sales. Consumers searching for expensive items such as mattresses are far more eager to purchase from WooCommerce retailers with a strong brand image backed by positive customer reviews. Despite many review strategies capable of encouraging customers to leave positive reviews, consumer financing with zero interest rates from ChargeAfter’s buy now pay later WooCommerce platform is becoming a popular integration for its ability to facilitate a better shopping experience. For this reason, customers may be more likely to share great experiences that they have had with your brand.

Large ticket sales are crucial to WooCommerce business success and the integration of ChargeAfter’s buy now pay later platform will allow your online store to thrive in the competitive retail landscape through facilitating greater value purchases.

How Magento Merchants Benefit From Offering Consumer Financing for Considered Purchases

Posted on by chargeafterdev

Consumers are smarter, more confident, and more careful during their online shopping journeys today more than ever before, and this is likely to do with the rise in eCommerce as a result of the Covid-19 pandemic. More customers have access to their favorite stores at their fingertips and more competition is drawing consumer attention as digital marketing soars. For this reason and more, Magento merchants need to develop innovative marketing strategies, utilize the newest online retail tools, and partner with the best consumer financing companies to target, convert, and retain customers who make considered purchases. 

But, what exactly is a considered purchase, what challenges do they present to Magento merchants, and how do Magento merchants benefit from offering consumer financing for considered purchases? We’ll take a closer look at all of these questions and answers in this article. 

What is a Considered Purchase?

Today, consumers are more inclined to research product options, take into consideration product reviews, and plan methods for financing large orders as they are more careful with their online shopping. This is even more notable with sentimental products such as jewelry, high-value items such as mattresses, and long-term investments such as real estate. As opposed to split-second decisions, or impulse buys, these purchases and more fall into what is called a considered purchase.

Considered purchases involve intensive customer research, competitor analysis, and consultation, typically owing to a longer purchasing cycle associated with the higher risk versus reward. Considered purchases are becoming more prevalent in Magento merchants’ stores, especially those looking to land large order volume purchases, and there are several significant challenges these platforms face regarding considered purchases.

The Challenges of Considered Purchases

Considered purchases slow down the time taken to make a sale, subsequently resulting in lower monthly sales reports. This can negatively affect a retailer’s financial figures and the prolonged purchasing cycle can lead to revenue loss. This is among the many challenges Magento merchants face from considered purchases. Listed below are several additional problems associated with considered purchases:

  • Despite brick-and-mortar stores experiencing a decrease in foot traffic during the pandemic, studies suggest that almost half the percentage of global shoppers prefer making considered purchases in-store
  • There are far more online Magento stores available to consumers, increasing competition for considered purchases

Does Consumer Financing Benefit Considered Purchases?

One of the critical ways Magento merchants can improve their sales of considered purchases is by leveraging the benefits of consumer financing. Consumer financing solutions from ChargeAfter spotlight the powerful support of multi-lender financing platforms in reducing the challenges associated with considered purchases. For example;

  • Reduced purchasing cycle as consumers have quick access to personalized loan solutions, thus, increasing monthly sales and encouraging the growth of margins
  • Large orders are funded more successfully because of the wide availability of lenders willing to loan to all types of shoppers, increasing revenue generated per order
  • Zero credit checks give considered purchasers more confidence and widens a merchants consumer pool, developing a stronger and broader grasp of the Magento shopping market
  • Personalized repayment plans ensure that each shopper or considered purchase benefits from tailored options, giving consumers peace of mind knowing that they are covered with the best possible financing solution
  • Financing is done on the back-end, meaning Magento merchants can spend more time focusing on customer service and thus promote retention or facilitate a quicker time-to-purchase

The benefits of consumer financing for considered purchases are endless and cover far more than what’s listed above. These are just a few ways Magento merchants can utilize ChargeAfter’s consumer financing platform to secure considered purchases with their cautious buyers. Doing so should help your company see an increase in revenue, better margins, and consistent consumer growth despite online retail becoming more competitive.

Furnishing Your Home: Must-Have Furniture Items Worth Splurging On

Posted on by chargeafterdev

Furniture doesn’t last forever, at one point or another, these items do need to be replaced. And if you don’t want to have to replace your new items after a few months or years again, it is worth spending a little extra money to get the items that will last even with frequent use. Whether you are redecorating your home for a more modern touch, or need to upgrade a few items that are looking a little worse for wear, these are the pieces of furniture worth splurging a little extra money on.

A High-Quality Mattress 

Getting a good night’s rest is one of the most vital aspects of leading a healthy lifestyle. It plays a pivotal role in maintaining the health and proper function of many biological organs and functions. Many people don’t realize this, but the state and quality of your mattress do have a significant impact on the quality of your sleep, your posture, and your spine health. 

When it comes to a high-quality mattress, the furniture item that is used the most, it isn’t wise to skimp on the cost. Instead, it should be a well-thought-out purchase, taking into account the type and brand rather than just the price tag. Before making the final decision, ensure you have done all the research and have actually tested out the mattress in person. A mattress that is too firm or too soft won’t support your spine while you are catching those much-needed zzzs. You need to find the right balance that works for your body type and needs. Yes, eCommerce has changed the way we shop, but some items, like a mattress, should still be tested out at the store before making any purchasing decisions. 

Living Room Furniture

Second to a mattress, your living room furniture is probably going to receive the most wear and tear, and the saying “you get what you pay for” holds true with these items. If you want your living room furniture to last more than 4 years, it is worth spending the extra money. A higher-quality sofa or couch will also offer more support as it is manufactured with a sturdier frame. The fabric quality is also a smart investment considering that spills are almost inevitable, especially with young ones. You want to invest in a sofa that offers support, can withstand heavy use, and is made with fabric that is easy to clean and stain-resistant. 

An Ergonomic Office Chair 

The COVID-19 pandemic has highlighted that remote work is entirely possible for some industries. Most companies have requested that their employees continue to work from home, a trend that doesn’t seem to be going anywhere any time soon. If you are fortunate enough to work from home, then splurging on an ergonomic office chair is a worthwhile investment considering that the average American spends 13 hours a day sitting! These chairs are designed to not only last but also to minimize strain on the spine, lower back, and neck. 

Before making the final decision, it is important to do your research into the product features and material used. The term “ergonomic” has become a marketing ploy and can make it difficult when making an informed decision. Take your time to look into reviews and to test the chair out in person at a store. 

A Sturdy Dining Set

Some of the best memories are created around the dining room table and is definitely considered a must-have item in any home if you have the space. This furniture piece is not only important for your eating habits but also serves as a focus piece in the room when entertaining guests. Splurging on one that is sturdy, stain-resistant, and well crafted will save you more money in the long run because it won’t need to be replaced often. 

Saving More With Point Of Sale Furniture Financing 

As we mentioned before, when it comes to furniture “you get what you pay for”. And unfortunately, quality doesn’t come cheap in most cases. But it is still possible to invest in quality furniture without breaking the bank or maxing out your credit cards. Point of Sale, or Buy Now Pay Later furniture financing is paving the way for consumers to get the items they want. Instead of skimping on price or quality due to budget constraints or having to put yourself into more credit debt, you are able to make larger purchases that can be split over a few months without any hidden costs or exorbitant interest fees. This type of furniture financing is customized to your budget, giving you more freedom to make smarter, more financially savvy decisions. Ready to learn more about Buy Now Pay Later furniture financing? Get all the information you need here. 

Now that you know what furniture is worth splurging on and how to gain access to it with flexible financing options, it’s time to furnish your home with the items that make you happy!