While retailers have made great strides with omnichannel in areas such as inventory and fulfillment, many still struggle with payments. Retail payment structures often differ between in-store, retail, mobile, and more. Finding simple, retail-specific financing solutions that can seamlessly capture and retain customers without disrupting their shopping journey is a top challenge for many retailers.
Point-of-sale consumer financing solutions have made significant strides in closing this chasm. These payment solutions, such as buy-now-pay-later (BNPL), grew dramatically during the pandemic, when social distancing led to an increase in home improvements and in-home fitness purchases. And this trend continues: new data from Citizens and Wakefield shows that 9 in 10 consumers are planning to make large purchases in the next 12 months, and nearly half (46%) of consumers who have not used BNPL services will consider it for upcoming purchases of $500 or more, particularly as prices rise due to inflation.Consumer preference is shifting to pay overtime options, because they provide a more budget-friendly, responsible way to pay for larger purchases.
BNPL lending is growing three times as fast as traditional credit cards with 20% growth per year, thanks to the benefits it can bring to both retailers and customers.
Being Where Your Customers Are
Installment-based POS financing solutions that are embedded into the customer journey are the next generation of BNPL. With automated, simplified, and unified approaches that cross all sales channels, retailers can easily capture and sell to customers and prospects no matter where they are – in store, on the retailer website or through social channels. The omnichannel approach solves for in-store POS and online integration challenges, empowering consumers to easily shop through their preferred channel, resulting in positive and consistent shopping experiences.
Increasing Loyalty and Repeat Purchase
Retailers can increase consumer engagement and brand loyalty with tailored installment financing solutions. Fifty-six percent of customers are more likely to return to a merchant if it offers POS financing, according to Lendit. The transparency and safety of installment financing products make purchases more accessible and convenient. In addition, POS installment providers can offer marketing solutions, such as product bundling and upgrades, that ensure greater future consideration and repeat purchase.
Simplifying Brand Interaction
Salespeople and customers often face an arduous, paper-heavy, and time-consuming process to apply for financing at POS, as opposed to online and mobile options which tend to be simpler and automated. With BNPL and other integrated POS financing solutions, digital simplicity is everywhere. An omnichannel tool plugs directly into a retailer’s current systems, making it as easy as possible for salespeople to understand and use, and for customers to sign up. For example, Z Gallerie and One Kings Lane give shoppers the flexibility to finance their home furnishing purchases of $100 or more with an omnichannel shop-now-pay-later lending solution.
Retailers who use POS financing can increase overall sales by 32%, according to Forrester. The advantages for retailers include increased revenue and customer loyalty, generating long term organic customer acquisition, retention, and growth.
Gaurav Sethi is a results-oriented financial services executive with 20+ years leadership experience and a proven record of accomplishment in driving comprehensive business, marketing, and product strategies. In his current role, Gaurav oversees product and strategy for Citizens Pay, a trusted and effective consumer installment financing solution. Citizens Pay moves beyond existing point-of-sale (POS) and buy-now-pay-later (BNPL) solutions to offer fast, easy, and tailored financing options to drive higher customer loyalty and maximize sales for retailers.
