Tag: Retail finance

Consumer Buying Trends Survey – The Importance Of Consumer Finance

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Furniture industry research specialist Dana French conducted the Consumer Insights Now research, which was released in September and was co-sponsored by ChargeAfter. The consumer finance study highlights customer behaviors across age groups (18-74). The primary goal of the research was to identify customer preferences and trends which would provide furniture sellers with useful information.

The survey provides data on how buyers often use consumer financing in a variety of ways. The research’s results include the kinds of goods they want to purchase, how they intend to finance such purchases, and how the furniture fits into their overall shopping list.

The research gives furniture retailers all the information they need to know about customer trends right now. For both new and established retailers looking to offer the precise services that customers want, the data may be of tremendous assistance. Especially when the study displays a variety of consumer behavior statistics.

The study emphasizes once more how essential consumer financing has become to our daily lives and how it affects every significant purchase made by a customer. Numerous survey results show that younger customers are more inclined to utilize consumer financing in their everyday life which is evidence that retail finance has become popular in recent years.

The survey’s findings could help retailers understand the value of customer financing in the furniture industry. It may be a signal for them to introduce additional buy-now, pay-later (BNPL) loans or POS financing alternatives.

The results of the survey also revealed which age group is the most significant group of consumers and which of them must be the primary category of potential customers. As a result, the data may be used by retailers to create a precise marketing strategy for upcoming sales and ensure that customers will have access to the financing choices they require. When properly applied, research may boost sales and conversion rates for shops.

 

How Consumers Plan To Pay

consumer financing how consumers plan to pay

According to the chart above, different age groups have different plans for how they will make their payments, or use consumer finance solutions. Although the numbers for customers who use credit cards and those who prefer to pay with cash are practically identical, we can see that younger groups are slightly biased towards cash payments. Due to their familiarity with traditional banking services and installment payments, older generations are more inclined to utilize credit cards for payment.

In contrast, younger Millennials and Gen Z tend to choose Buy Now Pay Later services from financing platforms when it comes down to consumer financing options available to them.. There are two potential causes for this. Namely, younger consumers may like BNPL since it offers superior services and the benefit, occasionally, of no interest charges, or are often unable to qualify for credit cards because they do not yet have a solid credit score. Similar considerations apply to cash payments, which are often made from savings accounts and are more frequently made by older generations.

 

Are Consumer Financing Options And Promotional Terms Important To Consumers?

Consumer financing what triggers consumer purchase decision

 

consumer financing importance of checkout financing options

Promotional terms are significant to 49% of customers overall for home goods, whereas financing options are important to 43% of customers when we compare how financing choices and promotions trigger the purchase for the consumers. The younger generations of Gen Z are the only age group, as shown in the table above, that is more likely to make a purchase when the shop offers financing choices at the point of sale. However, this is not true for other age groups. Only 27% of Baby Boomers believe that financing alternatives at the store are the reason to make a purchase, according to the lowest numbers for consumer finance.

Though the comparison is close across practically all age groups, younger generations are more influenced by both possibilities and are more likely to purchase as a result. As we can see, promotional conditions are an excellent instrument for boosting sales and luring customers. Conversely, the businesses that choose to use both of the proposed solutions will succeed the most and draw in the most number of customers.

As shown, the Consumer Insights Now consumer finance survey provides the exact data and facts furniture retailers require to develop effective new tactics and know which consumer financing solutions to use.

 

References:

Consumer Insights Now research, Home News Now (September 11, 2022) Consumer Insights Now: Research highlights consumer buying behavior in the second half

Why ChargeAfter Launched a White-Label BNPL (Buy Now Pay Later) Service

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Financing platforms must create new services or integrate existing ones to stay up with the demands of merchants and customers in the market as modern consumer financing develops quickly. Given the intense competition in the market and the growing popularity of BNPL lending, it is difficult to stay on top without modernizing the financing system and providing the highest level of customer service. That has become the reason why the leader in consumer financing, ChargeAfter, has decided to implement BNPL white label services.

 

What is the BNPL white label?

 

The company can employ consumer finance in its e-commerce store and brand it under its name when using the BNPL white label services provided by the financing platform. Simply put, the retailing business can make its operation appear more professional and can do so in the simplest method imaginable. Instead of spending a ton of money developing a new finance system, retailers may now provide branded POS financing services by just utilizing the existing model.

 

Why did ChargeAfter adopt a White-Label service?

 

As the market becomes more competitive, more BNPL providers are attempting to gain an advantage by introducing fresh services that rival BNPL providers do not. Additionally, BNPL white label has grown in popularity among both consumers and merchants, and since ChargeAfter’s lending platform has always given customers the best services possible, the company decided to implement white label services as well. This will keep merchants informed about the consumer financing industry and allow them to enhance their performance. Retailers are now able to get greater results and rise to the top of the selling sector thanks to BNPL white label, which has its advantages.

 

Benefits of BNPL White Label

 

BNPL white label has advantages of its own, much like other consumer financing features. With many BNPL benefits in general, we can go over the following three advantages of white label services:

 

1.    Makes your Business Well-known and Reliable

 

White label services, as we already established, are branded with the firm’s name, giving the company a more trustworthy appearance in the eyes of the customer. As the corporate name is less easily recalled than the lending system itself, when customers use consumer financing without a white label, it is typically a one-time transaction. The reason for this is that customers search for the best BNLP lending option rather than the store itself because the financing platform is the one that specifically allows customers to divide their payments, and customers prefer to select the right platform rather than search for the right store online. So, branded finance software will increase customer loyalty and brand recognition for your business.

 

2.    Makes the Financing Experience Better

 

When a customer wants BNPL services at the point of sale, they are typically referred to the websites of various financing platforms, where they may have to spend a lot of time filling out numerous forms to obtain the funds they require. In the case of the BNPL white label, the customer fills out the application on the e-commerce website. In particular, when using ChargeAfter’s white label services, the merchant can be confident that the customer will receive credit for the purchase because ChargeAfter provides them with a number several lenders from which the system will select the most appropriate option for their needs.

 

3.    Boosts Sales and Conversion Rate

 

As was already mentioned, white label services provide a better user experience, which may be a key factor in reducing cart abandonment and increasing traffic to your websites. By utilizing ChargeAfter’s BNPL white label services, your business can provide the greatest experience to the consumer, which will naturally have a favorable impact on sales and conversion. Buyers want simple financing and a shopping experience.

 

Summary

 

To sum up, ChargeAfter’s global lending platform has adopted BNPL white label services to stay up with the industry’s rapid expansion and provide the best BNPL lending services to retailers. As consumer finance is becoming one of the main ways to purchase items or services, ChargeAfter makes it possible for consumers to buy things online in the best way possible.

 

Want to learn more? Reach out to us here.

White-label BNPL: What is it?

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A consumer financing option called BNPL (Buy Now, Pay Later) allows customers to buy goods or services and spread out their payments over time according to a pre-set payment plan. BNPL services are mostly offered by lending and financing platforms at the point of sale.

When a product or service is created by one company and branded under the name of another, this is known as a white label. BNPL white label service is offered by the financing platform of ChargeAfter.

 

Benefits of BNPL White Label

The most effective POS lending platforms are made available to customers by merchants with a white labeled multi-lender, BNPL  platform. Merchants can boost their sales and build consumer trust by using ChargeAfter’s white label product  —  as well as get the best and most modern financing software solution for their stores, both online and off.  Additionally, ChargeAfter’s multi-lender network and consumer financing platform is available for banks, acquirers, and other financial institution to implement white label services and provide BNPL consumer financing to their merchants.

 

Customizable White Label Services

ChargeAfter’s turnkey, BNPL white label platform is customizable for banks, acquirers, financial institutions and merchants, meaning that they can brand and offer our BNPL consumer financing platform as their own.

The platform is made up of many parts that may be adjusted without requiring the development of a new solution. Want to learn more? Schedule a demo or reach out to us here.

 

Want to learn more? Reach out to us here.

ChargeAfters BNPL White Label for Banks

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Consumer financing in general and Buy Now Pay Later (BNPL) in particular provide clients with funds at the point of sale for the goods or services that best suit their needs. These days, it is the easiest and most convenient means of funding. With the ability to access funds, make purchases, and make payments over time, BNPL has been increasingly popular among clients because of its quick and simple experience. To maximize its benefits, lenders and retailers both use BNPL. They can raise the user base and sales since BNPL lending is the most popular financing option right now and has the most users, which ensures an increase in the clientele for both lenders and merchants and gives them the opportunity to become more successful.

What is BNPL White Label

Large fintech firms, including ChargeAfter, provide BNPL white label services to banks. When a bank chooses to use the BNPL white label option, they have access to all the financing platform’s features and can put the platform on any number of merchant websites that also want to use BNPL lending and consumer finance. The platform is branded with the bank’s name, which is the primary benefit of a white label. Therefore, the BNPL software will be developed by the fintech business, and the bank or the retailer will be able to utilize it under their name, giving them a more professional appearance and winning over more customers.

Using a Viennese Fintech company as a partner, Deutsche Bank recently gave businesses white label services. Retailers can employ the BNPL services and profit from the large bank.

ChargeAfter Global Lending Platform

Additionally, ChargeAfter offers BNPL white label services to banks and retailers. Employing ChargeAfter’s white label services is a fantastic helper for merchants and banks because it provides one of the fastest and most convenient services available. Offering your customers and clients the greatest financing platform could not be easier than this. The ChargeAfter platform has been improved over the years, and as a result, it is currently the most modern and ideal financing software. By utilizing its white-label services, banks may save time and money by using ChargeAfter’s platform with their branding.

Benefits for Retailers and Banks

White label services are one of the best solutions and can be helpful even for large banks, as demonstrated by the case of Deutsche Bank. The basic explanation for this is that BNPL lending and retail finance have both grown in popularity recently, forcing banks to either collaborate with or stay up with smart Fintech firms like ChargeAfter. The banks and ChargeAfter’s worldwide lending platform may work together to create the most appealing financing software, which will be made available to customers at the point of sale. Those kinds of collaborations are giving them more retailer clients as they benefit from the financing platforms as well, and a bigger client base, as BNPL lending, is in huge demand nowadays.

 

White Label Banking: The Future of Lending Services

White label services are being implemented by more banks, which is increasing consumer demand for BNPL. Traditional financial institutions have begun to collaborate with fintech firms and employ BNPL for banking services since they have observed that shop now pay later offerings are growing more appealing to consumers. Users enjoy digital forms of lending with options that are quicker, safer, and more comfortable, according to research from last year, which demonstrated that BNPL lending, POS financing, and other smart Fintech solutions are essential to the future of consumer financing. So, it follows that to maintain the quick pace of consumer financing advances, an increasing number of banks will work with Fintech firms like ChargeAfter.

Summary

Finally, given that banks must work with Fintech firms, we can conclude that selecting ChargeAfter’s leader financing platform for BNPL white label services will be a significant advancement for any institution. Every bank will benefit greatly from being able to participate in modern consumer financing experiences and ensure that their relationship with the retailers and customers is secure and stable through the strongest financing platform of the ChargeAfter network because ChargeAfter’s lending platform is already established and is trusted by many retailers around the world.

 

Want to learn more? Reach out to us here.

Podcast summary with CEO Meidad Sharon: Powering BNPL platform with ChargeAfter

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Before ChargeAfter

 

During an interview with The Fintech BluePrint, Meidad Sharon, CEO of ChargeAfter, a top worldwide lending platform, discussed how ChargeAfter was founded and how the demand for consumer financing and BNPL drove him to build one of the best global financing platforms in the world.  Meidad discusses how at the time he worked at SafeCharge Nuvei, the financing and payment market was in desperate need of a smart and quick platform for consumer financing. The right and effective strategy was therefore required to create the firm that would serve as a link between retailers, customers, and lenders and assist them all to have the best possible shopping and business experiences.

What was the best course of action? The key concerns at the time, according to Meidad, were identifying which methods would be successful and figuring out how to apply them. Which customer segment should you target, and how can you convince them to buy your products? How to move your business on the proper path and what the next steps are. The most important step after strategizing is to observe how your plan performs in practice and which market segments it affects. The solutions and the secret to success are revealed in the first results.

 

Why was ChargeAfter necessary

 

Meidad Sharon discussed the inspiration behind one of the greatest BNPL Fintech companies in the globe during an interview. Speaking about his experiences while working at SafeCharge between 2010 and 2016, he described how businesses requested consumer financing options like loans and credits to increase sales and the number of customers they had. The prior numbers were incredibly low because only a small portion of customers who were browsing internet shops made any purchases.

“Only 3% of the consumers that are reaching the website end up buying”, said Meidad during the interview.

Due to the rapid expansion of e-commerce and online stores, Fintech businesses have to be established to meet the demands of both customers and business owners. There were two key causes behind that, as Meidad stated. The ability to create a global lending platform to provide consumer financing, and secure payments, because fraud was on the rise, and give all parties the fastest shopping experience was made possible by two factors: first, the innovators became the mainstream on the market, and second, the customers became more sophisticated and demanding.

Meidad responded that the payment is always the end of the tunnel in whatever type of business when asked why he picked the consumer financing and BNPL fields. Retailers, customers, and lenders are the three main parties that make up a global lending or financing platform. One of these parties constantly creates market opportunities, giving financing platforms the chance to expand while also assisting other businesses, from local to global ones, to achieve success. According to Meidad, the path was challenging but intriguing because it took time to develop the best platform, and using Visa and Mastercard’s features and services was essential to resolving issues and making the platform the market leader.

 

How has it started

 

Meidad also discussed the origins of the business and the first stages of success. ChargeAfter launched quickly to receive the first reviews since it combined financing expertise with experience working with various customers and merchant types. As he previously stated, the initial experience was quite exciting, the business was focused on the market and the requirements of retailers and customers. The next stage was to develop the product in light of feedback from the initial phases and expand the distribution of the service to new customers and lenders.

 

Where is ChargeAfter Now?

 

Meidad talked about the challenges ChargeAfter faced and the current difficulty they are working on. The majority of financing platforms were still rejecting 70 percent of applications. There were so many consumer financing choices, such as loans and installment payments, accessible on the market. There wasn’t a platform that would offer every customer the same service due to the various local restrictions that apply in various nations. As he noted, the majority of funding platforms just addressed specific aspects of problems, like prime consumers problems in the US, or near-prime credits in Canada, rather than the root causes.

“There are great lenders out there, but the market is disconnected, each lender is solving the part of the puzzle, but not all the puzzle.”, stated Meided Sharon during an interview.

Therefore, there was a critical need for a consumer financing platform that would link lenders and merchants so they could provide various forms of retail credit or Buy Now Pay Later services to the public, allowing ChargeAfter to expand its loan rate from 20 to 80 percent. It was crucial to be able to assist clients from various locations while ensuring that they received the consumer financing they required. These were the driving forces for the creation of ChargeAfter, which allowed him to use the greatest features of each lender, provide customers a far higher chance of approval in BNPL, and provide retailers with the best ways to boost sales and maximize AOV (Average Order Value).

This led to the creation of ChargeAfter, the market leader in consumer financing, which has reputable lenders and allows the financing platform to provide diverse services to retailers and customers so they may obtain BNPL loans with the payment plans of their choice. As Meidad has stated, he intends to raise the number of lenders to 70 by the end of this year and is already extremely near that goal.

The entire spectrum is currently covered by ChargeAfter. Different BNPL white label services, card installments, visa installments, and non-card choices are provided by lenders. working with major financial institutions like Citizens Bank or Wells Fargo, the US leasing companies, and offering business financing to businesses. Each customer can thus choose from offers that are relevant to them.

 

Economics of ChargeAfter

 

Meidad also discussed the business’s economics and the source of its income. He compared ChargeAfter’s actions to what Visa and MasterCard accomplished decades ago, when they connected all the banks in one place and enabled the use of a single card for a variety of services.  ChargeAfter is doing the same by linking lenders with the merchants. It is charging lenders platform fees based on transaction volume in order for them to use the financing platform of ChargeAfter and maintain connections with numerous merchants across the world.

 

How does it Work

 

ChargeAfter’s financing platform is simple to use for retailers thanks to integrated systems on websites. They only need to download it and use it in their stores. Additionally, it is simple for the customers because they just need to complete the application once, and the system will match them with the best lender. The platform’s responsibility is to offer them a safe and appropriate solution to all BNPL regulations and limitations.

To accommodate the growing number of customers, the system must also be modern and functioning effectively. To be secure and up to date, the corporation invests heavily in it and tests it every month.

 

Upcoming Trends

 

The CEO also discussed future trends in the industry. According to Maided, they can predict what would happen based on the statistics they have. There are two major market trends on the horizon. First, there is an increase in loan demand. To fulfill their needs and overcome obstacles, consumers will want more credit. In the future, more consumers will seek consumer finance since BNPL white label services will be increasingly necessary for the clients as the cost of goods and services rises daily.

Second, because lenders would have stricter loan requirements, the availability of credit will be difficult. The same thing occurred during the COVID-19 pandemic when loan approval was cut in half. According to Meidad, the same scenario will occur, and certain loan organizations will either exit the market or fail to adapt to the new trends.

ChargeAfter will play a crucial role in preserving the relationship between lenders and retailers so that consumers may still choose from a choice of BNPL options for their consumer credit. However, to qualify as prime clients and receive prime offers from the financing platform, customers must maintain the highest possible credit ratings.

Meidad Sharon concluded by saying that the ChargeAfter worldwide loan platform will continue to function as a connecting network to aid customers and retailers in getting through this time.

 

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