Will you jump on the next wave of credit?

POS financing is no longer just a new trend; it’s becoming a standard payment method for many consumers. With evolving shopping behaviors, customers increasingly demand flexible payment options that help them plan and budget effectively. For merchants aiming to deliver a customer-centric experience, offering credit point-of-sale financing is essential to provide flexibility and choice at checkout.

5 Reasons to offer your consumers POS financing at checkout

1. Positive customer experience

One of the most overlooked advantages of a well-implemented POS financing platform is its boost to the customer experience. Offering personalized finance terms between 6 to 48 months that cater to unique financial needs enhances satisfaction. However, selecting a financing platform that delivers high approval rates is crucial. Single lenders typically approve only 35% of applicants, as they focus on consumers with prime credit. This leaves out a significant portion of customers. A multi-lender POS financing platform like ChargeAfter, with a network of global lenders, can approve up to 85% of applicants. Increasing the number of approved shoppers enhances their confidence in making more significant and frequent purchases. This leads to stronger long-term customer relationships.

2. Boost in sales

The checkout process often determines whether a sale is completed. Complex or lengthy checkouts contribute to high cart abandonment rates—81% of consumers abandon their carts online. POS financing simplifies this process by offering customers a fast and convenient way to access credit that isn’t tied to their credit cards. According to Forrester, companies offering POS financing have seen a 32% increase in sales. Merchants using multi-lender platforms like ChargeAfter report even higher sales boosts, up to 45%. Maximizing every sale opportunity by providing POS financing at checkout is a win for you and your customers.

3. Increase your average order value

Offering POS financing doesn’t just boost sales—it also increases your average order value. According to a Forrester study, merchants who offer point-of-sale financing see a 75% increase in the average purchase amount. Customers can spread payments over time, making higher-end purchases more affordable. For instance, 74% of U.S. cardholders view installment plans as a helpful budgeting tool, while 70% believe it reduces the stress of making large upfront payments. By offering your customers the opportunity to finance their purchases, you’re effectively increasing their buying power and enabling them to make larger purchases quickly.

4. Widen your customer base

A streamlined POS financing platform makes it easier for customers who may not qualify for traditional loans or prefer to use something other than credit cards. Debit cards are becoming increasingly popular, and recent reports show that credit card usage is at an all-time low. 63% of Millennials and Generation Zers don’t own a credit card, yet they will soon make up more than half of the consumer market. Point-of-sale financing appeals to these consumers by offering flexibility and avoiding large upfront payments. Moreover, research shows that 87% of Americans prefer to pay for big-ticket items in monthly installments. By advertising in-store financing options, you’ll attract a broader customer base, including those with varied credit backgrounds.

5. User-friendly experience

Providing a user-friendly and transparent checkout experience is critical to the success of any financing option. Platforms like ChargeAfter’s multi-lender POS financing platform integrate seamlessly into your website without redirecting customers to third-party sites. The financing option appears alongside traditional payment methods, and customers can complete their application in under a minute. By offering a quick and straightforward financing solution, you’ll improve customer satisfaction and loyalty, making it more likely that they’ll choose POS financing for future purchases.

The benefits of POS financing

The advantages of POS financing extend to everyone involved in the transaction. For price-conscious shoppers, it provides a comfortable middle ground between making a large upfront payment and spreading costs over time. For merchants, it offers a powerful tool to strengthen relationships with customers. Here are some additional benefits:

• Appeals to responsible shoppers: Many consumers are financially cautious, especially when making larger purchases. Offering point-of-sale financing aligns with their budgeting needs, allowing them to shop responsibly.
• Available across multiple channels: POS financing isn’t limited to just one type of transaction. You can offer it in-store, online, or even over the phone. This omnichannel lending approach ensures that customers can access flexible payment options no matter how they prefer to shop.

Will you jump on the next wave of credit?

The future of payment options is changing rapidly. As more consumers demand e-commerce financing and other embedded finance solutions, merchants who adapt to these trends will stay ahead of the competition. Offering embedded financing or integrating a white-label BNPL solution into your checkout process can significantly improve your overall sales, customer satisfaction, and business growth.

Why embedded lending networks are the future

One of the key trends shaping the future of payments is the rise of embedded lending networks. These networks allow merchants to offer financing options directly through their existing platforms, creating a seamless customer shopping experience. The embedded finance platform works behind the scenes to connect consumers with various lenders, ensuring they receive the best possible financing terms based on their credit profile. This increases approval rates and makes it easier for merchants to offer flexible payment options without needing to manage the financing process themselves.

By integrating embedded lending into your business, you’re offering your customers a smooth, frictionless experience. Whether through a white-label POS system, BNPL white-label solution, or a comprehensive POS financing platform, these tools are crucial for businesses that want to keep pace with the evolving expectations of modern consumers.

Expanding with omnichannel financing

Another significant benefit of POS lending is its flexibility across various sales channels. Offering omnichannel financing—whether online, in-store, or through mobile—ensures that your customers have access to financing options wherever they choose to shop. This adaptability helps create a consistent customer experience across all platforms, which is vital for building brand loyalty.

With embedded finance solutions becoming more integrated into the retail environment, businesses that embrace in-store financing alongside their e-commerce financing solutions will be better positioned to meet the needs of today’s consumers.

The importance of credit in POS financing

Credit plays a pivotal role in the success of POS financing strategies. As consumer demand for alternative financing options grows, offering credit solutions that cater to a wide range of credit profiles becomes essential. Traditional lenders may only approve customers with prime credit, but by leveraging a multi-lender embedded lending platform, merchants can approve customers with varying credit scores, widening their customer base and boosting sales.

A white-label BNPL solution allows merchants to offer flexible payment options under their brand while tapping into a network of lenders that cover different credit tiers. This helps customers with limited credit access financing and boosts overall approval rates, leading to more completed sales and higher customer satisfaction.

Preparing your business for the future of financing

The future of retail is all about offering seamless and flexible financing options at every point of the customer journey. Your business can stay ahead of the curve by integrating POS financing, whether through embedded lending platforms or omnichannel financing solutions. Offering your customers flexible payment options like in-store financing, BNPL white label, or e-commerce financing provides a competitive advantage in today’s retail landscape.

Now is the time to prepare your business for the next wave of consumer demand. Will you jump on the next wave of credit and take advantage of the numerous benefits of POS financing?