What is Point-Of-Sale (Checkout) Consumer Financing
Consumers are increasingly favoring online buying these days. It has become a justification for the creation of numerous Fintech businesses that provide various consumer financing options to retailers and merchants for integration into their online stores and clientele availability. BNPL (Buy Now Pay Later) and POS financing are two of the most widely used methods of consumer credit (Point of Sale financing).
There are many different types of financing platforms available right now, but some of them have gained popularity due to their excellent services. These companies include ChargeAfter, Affirm, Klarna, and other well-known Fintech firms. After POS financing with their Waterfall Financing System was made available, ChargeAfter gained popularity and increased consumer appeal.
What is Point of Sale Financing
A wide term used to describe strategies for providing customers with flexible, pay-over-time installment choices is POS financing. Some customers ask for a one-time installment loan at the register to assist divide the cost of their purchases into more manageable monthly installments. In other instances, a customer may register with a payment platform that collaborates with a particular shop and offers the opportunity to select a payment plan when they check out.
Customers can use POS financing on various e-commerce websites using ChargeAfter’s global lending network and pay no fees if payments are completed on time and in accordance with their pre-arranged payment plan. The most positive experience is provided to customers by the quick and safe financing platform.
Benefits of POS Financing
POS financing benefits both consumers looking for clear credit choices and businesses looking to increase sales by tapping into a larger client base. It is immediate, hassle-free, and provides customers with more information regarding the final cost of the purchase. Additionally, buyers have been freed from traditional credit choices thanks to this alternate method of financing. Less abandoned online shopping carts translate into better sales, which is POS financing’s key selling point for businesses.
· For Businesses
There are several reasons for firms to think about embracing POS financing due to its long list of advantages. It provides customers with the quickest and most intelligent experience possible, ensuring greater sales, a better conversion rate, and the most crucial aspect of every sale—returning clients. In a few months, your business can become stronger and more successful by implementing the right finance platform on your online store.
· For Consumers
Consumer-facing finance options, including BNPL and retail credit, have been around for a long time. But POS financing, which provides instant pre-approval, flexible repayment options, and transparent conditions, has strengthened the buy-now-pay-later concept’s appeal among consumers.
The total amount of POS loans doubled between 2015 and 2019. In fact, it is projected that this expansion cost the credit card industry and conventional lending models $10 billion in revenue.
So instead of utilizing credit cards for modest transactions, consumers prefer to use consumer financing methods like point-of-sale financing. Because of its simplicity, it is preferable because applicants have a simpler time applying and don’t run the danger of damaging their credit.
How to Offer POS Financing?
With ChargeAfter as your platform, it’s never been simpler to offer low monthly payment options if you’ve established that your consumers need POS financing. Make sure to let your clients know that POS financing is an option once you’ve signed up with a platform like ChargeAfter. While you would initially believe that a financing option is only available to clients who are unable to pay the whole amount up front, some clients could actually appreciate the flexibility of stretching the payment out over time. Giving every consumer this choice can raise approval rates as well as customer satisfaction.
We can sum up by saying that using Point of Sale financing on your e-commerce website is currently the finest strategy for growing your company. Different finance choices are becoming more and more common among consumers, and it is nearly impossible to picture online shopping without financing possibilities. Therefore, if you want to participate in the enormous online market, you should think about using the POS financing system from reputable finance platforms and making your online store modern and consumer-friendly.
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.