The Consumer Landscape is Changing, Enter the Age of Point of Sale Financing

The new year has begun and as a merchant, it is important to prepare and embrace the ever-changing consumer market. There is now an additional payment method to offer consumers at checkout; online, in-store, or over the phone. By offering consumer financing at the Point of Sale, along with the traditional payment methods, as a merchant you are increasing the probability of conversions and higher AOV’s from the consumers that do a checkout with financing. Point of Sale Financing allows you to sell more products and more high-ticket items because consumers no longer have to solely rely on the use of their credit cards, rather they are able to receive more affordable and personalized financing options on the spot – live at checkout. An additional and immediate benefit of offering your consumers the option of using Point of Sale Checkout Financing is the ability to receive offers such as 0% APR on a purchase which can range anywhere between 6 – 48 months! Now imagine being able to pay off a new sofa over 2 years without a single cent in interest.

Point of Sale Financing is beneficial for big and mid-ticket items alike. The intent is to offer consumers more accessibility to purchase the products they want and need wherever they shop. Most retailers have a deeper understanding of the importance of an online presence in addition to a physical one, yet some retailers remain solely online as they find it easier to attract consumers without the restriction of geographical borders. The number of consumers purchasing items online has significantly increased over the past decade and that number continues to steadily grow both nationally and abroad. In a study conducted by Marist College and National Public Radio, 76% of all adults in the United States shop online. In fact, 25% of those who shop online do so at least once a month and 16% shop online at least once a week. It is also equally important to consider and understand the demographics of the shoppers. According to UPS, 54% of all online purchases are made by millennials and generation Z’s consumers. The reason we have to acknowledge these facts is to stay relevant within the current shopping trends, and more importantly, to adapt correctly for the future of retail. If we’re already talking about the future, by mid-2020 it is estimated that 40% of consumers will be millennials and generation Z. Why is that fact so important? Simple. 63% of millennials and generation Z’s do not own a single credit card! Think about how this will directly affect your business!

Modern consumers are much more careful with their spending now than ever before. They are aware of the burden that traditional credit card debt entails.  The concept of Point of Sale Financing is appealing for more reasons than just avoiding a big charge upfront. It doesn’t have the stigma of credit card debt or the interest charges that come with it. In a study conducted by Forester, it was found that there was an increase in order value of 75% for all companies that offered Point of Sale Financing. The reason was simple, checkout financing allows consumers to pick personalized financing options that fit their needs. Consumers will know the exact charge to expect and even better, there’s no surprise hidden fees! As long as the terms are met of course. 

POS financing has been driven in large part by the consumers as they are now selecting alternative options available at checkout. Checkout financing is quick and offers customers flexibility in their payments, it is integrated in the same way other familiar checkout options are available like Visa, MasterCard, Apple Pay, American Express and more. ChargeAfter simply adds a financing button to the payment options. Financing at checkout is quick and easier than ever, the customer provides their date of birth, phone number, social security number and, monthly income figure. A few seconds later, you’re approved for financing!

ChargeAfter is a market-leading financing technology platform that connects merchants and lenders to offer consumers personalized point of sale financing options at checkout from multiple lenders. Through a growing network of global lenders, merchants can approve up to 85% of applicants in real-time and increase sales by up to 45%.

Happy Shopping!