Over the past few years, online shopping has grown in popularity. Both customers and merchants found life to be significantly more comfortable thanks to online stores. Nowadays, people can order anything online and have it delivered to their homes. Considering the fact, that all kinds of products are escalating in price, Consumer financing has made online shopping even simpler. Customers can now finance their needs with a point of sale financing option, which is available in almost every online store.
How Does it Work?
When a lender and a customer interact at or before the point of sale, consumer financing occurs. This enables the customer to divide a purchase into manageable installments. The consumer benefits from having more immediate cash available to them and from knowing that they have payment flexibility.
Point of sale financing is one of BNPL (Buy Now Pay Later) solutions. Given that you typically don’t even need to leave the retailer’s website, it is regarded as one of the most practical methods of consumer financing. Consumers frequently choose POS financing options, when buying expensive products like furniture, autos, home improvement projects, and trip expenses. So, how does it work? After the customers decide which products they want to purchase, they can apply for point of sale financing available on the website, which is checked by various lenders on the financial platforms, if the buyer meets the criteria necessary for the financing, they can choose which installment plan they want and pay the purchase amount over time.
Why Is It Good for Retailers
BNPL and consumer financing in general have a great impact on sales and customer conversion rate for any company, point of sale financing or checkout financing does the same. Nowadays, people prefer to split any kind of payment instead of paying it all at once. So, POS financing can increase the sales rate for any retailers and help them develop their company. Additionally, checkout financing can grow the client base by enabling everyone to buy expensive things and pay monthly installments.
The potential to boost sales is the most attractive advantage of POS financing software. Retailers may close more purchases more quickly by allowing clients to apply for financing on the spot at favorable conditions. Due to a lack of funds, some clients choose not to purchase anything. According to statistics, businesses that provide POS financing increased their sales drastically.
Benefits for Consumers
Point of sale financing is transparent, unlike credit cards. Customers, therefore, are aware of their exact repayment amount, including interest and taxes. There are no unexpected costs or charges. It also works just like instant financing, the funds are available in seconds, and the main reason why customers prefer to use POS financing is lower interest rates compared to other consumer financing options. On top of that, customers are often not subject to strict qualifying standards when using POS financing lenders. Thanks to this, consumers with weak credit histories can obtain funding without having to go through the tiresome process of applying for a credit card or loan.
How to Implement POS in Your Store
Before doing so, keep in mind how crucial it is to select the right platform for consumer financing. Due to its extensive network of lenders and ability to give customers a variety of options, ChargeAfter is becoming more and more well-liked among store businesses these days. As we’ve observed with other businesses that collaborate with ChargeAfter, your choice of BNPL provider can have a major influence on your company. A possible rise in AOV and a potential increase in repeat business are one of the advantages it can offer. Additionally, ChargeAfter is one of the most reliable financing platforms currently on the market. After taking all suggestions into account, the company can implement point of sale financing as their “Buy Now Pay Later” option on their website and give their customers options and more possibilities to buy the products that they need.
The last thing we can say is that point of sale financing or consumer financing in general, is a necessity for modern stores. If the business wants to increase its revenue and become strong and successful on the market, it should follow the example of other large corporations and offer POS financing as a BNPL option to its customers.
ChargeAfter is a leading multi-lender platform for Buy Now pay later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.