Consumers can buy just about everything online. So it shouldn’t come as a surprise to learn that the ecommerce will be worth $1 trillion by 2025, especially as Covid has only turbocharged our desire to shop in the digital sphere.
With the landscape always evolving, businesses selling goods and services on the internet need to prepare for a changing consumer dynamic. One of those changes is how people pay for products and services, with traditional payment methods becoming less popular for transactions.
Enter the point of sale finance provider, who can increase the appeal of your business with flexible payment options designed for the modern-day consumer. But what should you consider before choosing a finance partner?
We’ve put this guide together looking at the key considerations when it comes to using a point of sale finance provider to boost your online sales.
A broad range of solutions
You want to partner with a company that provides options. Alternative payment methods offer various ways to pay for products and services, and there’s no one-size-fits-all approach. Some customers like using a form of buy now, pay later; others might opt for set monthly payments.
Therefore, you should aim to find a point of sale provider that is just as flexible in its approach to the products it offers. Ideally, you will have different payment options that cover all basket sizes. Doing so gives your customers the option to choose which payment they prefer in line with the product they purchase.
Working with a provider that offers multiple finance options allows you to give customers more choice, which will, in turn, increase loyalty. If a consumer believes you provide a better service, then they’re more likely to give you repeat business. And if you happen to offer their favourite payment options at checkout, they’ll keep coming back to give you repeat business.
By providing a variety of payment options, finance providers help you increase conversions and meet the needs of customers. You don’t want to partner with someone only to find that acceptance rates are low because of a lack of options. Different lenders have varying risk appetites, which means that having multiple lenders behind your product enables you to obtain even higher acceptance rates.
Being sensible and thorough with factors like credit checking is vital for responsible lending, but a lack of lending options could see your customers missing out on finance. Therefore, you should work with a provider that can boost acceptance rates through a multi-lender panel.
For example, at Deko, we offer a multi-lender service to filter options and ensure the right lender fit for the customer. It’s a key driver that will help you attain more business. A customer rejected by a single offer has no other options and can’t get finance.
However, that same customer could be rejected for finance with the first lender on a multi-lender service, yet get approved by the second lender option. That’s because multi-lender seamlessly moves onto the next available lender when a customer applies for finance.
Even better, the process doesn’t disrupt the customer’s experience. It all happens in the background, ensuring a seamless service where the customer’s chance of getting finance significantly increases.
Having access to expert help is vital for a good relationship between a merchant and a finance provider. There should be a robust customer support process in place that helps merchants feel comfortable using the service.
Having dedicated account managers and people on hand to provide advice and answer queries will help the relationship get off to a better start. It also shows the commitment and dedication of the finance provider.
The last thing you want is to work with a provider and not be able to get in touch with them. Providers should also have plenty of resources available and be up to date with the latest insights, showing thought leadership and being able to showcase the latest trends in the market.
More buying power for your customers
A greater range of payment options gives your customers more buying power and can help you sell a higher number of big-ticket items. Merchants often see checkout abandonment with customers at the last part of the buying journey.
With flexible finance, however, you can unlock that friction and sell more items. You will also increase customer confidence in the process, giving them more reason to believe in your brand thanks to smarter and more flexible ways to pay.
Again, customer loyalty is a really important component for business. Loyal customers lead to repeat business, which helps you increase your bottom line. The market for repeat buys is strong, and you should always think about your customer and their mindset when deciding on a retail finance provider to partner with.
Summary: finding the right point of sale
The right finance partner is one who can offer multiple products and lenders to empower your customers to pay the way they want. Finance providers who can do this are able to spend more time understanding the best match between customers and merchants. The result will be an integrated experience and a stronger relationship between the merchant and retail finance provider, thus increasing trust and delivering a flexible finance payment ecosystem that sees you sell more items.