Consumer financing, also known in-store financing, flexible financing, installment plans, or “buy now, pay later” plans, enable consumers to purchase products over a specific period. Because of the flexibility, it’s no wonder that more and more retailers are implementing this payment scheme.
If you would like to avoid cart abandonment in your online shop, you have to take the necessary steps to boost your checkout conversions. One thing you could do is offer as many payment methods, including a point-of-sale lending platform through flexible, in-store financing.
It gives a competitive advantage over their competitors. If you are an online retailer looking to increase your sales and promote brand loyalty, learn more about how customer financing could help you.
The Benefits of Offering Customer Financing
Years ago, consumer financing was only available on brick-and-mortar, big-ticket products. Nowadays, however, it’s common to see this alternative payment scheme even when checking out in online retail stores. For one, it’s very easy to adopt this technology, and the entire process is extremely easy to follow for consumers as well.
A recent survey found that retailers that offer consumer financing experienced an average of 33% increase in sales. By enabling consumers to pay for their purchases in installments, you could easily reach more customers that you wouldn’t have otherwise reached because of budget constraints. Also, customers who usually buy smaller orders are now buying more items because of this flexible financing scheme.
A study conducted by Forrester also found that providing in-store financing for consumers could lead to an average 15% boost in order values as well as an average 17% growth in incremental sales. This increases to as much as 15% when the holiday season comes around. Aside from that, other surveys indicate that the knowledge of customer financing options influences the decision of web users to purchase from certain online stores.
By taking advantage of this easy-to-implement and consumer-friendly financing option, you’ll see more conversions at checkout as well as increased sales and improved brand value in no time.