Anyone shopping for big-ticket items online lately has probably seen point of sale consumer financing options popping up on retail websites across the web. There have always been buttons for Visa, MasterCard, PayPal, Apple Pay, Google Wallet, and others. Now, consumer financing is right there next to them.
Consumer point of sale financing options may be a recent development, but they’re spurred by bigger trends that have been a long time coming. Check out a few reasons why consumer checkout and point of sale financing and credit is rapidly being implemented as an option at checkout on eCommerce sites across the web.
Until recently, big-ticket items still commanded a trip to the store. Shoppers had too many concerns about online ordering. What happens if my Rolex is lost in the mail? What if package thieves nab by MacBook Pro while I’m at work? What if my big screen TV arrives damaged?
As eCommerce has become more and more a part of everyday life, these concerns have mostly dissipated. Most retailers offer favorable return policies and are willing to work with customers to resolve issues. Consumer confidence has never been higher, which has led more people to save themselves a trip to their local retailer and instead, order online.
With a move towards making bigger purchases online, traditional in-store financing has also had to move online.
Millennials and Gen Z are much more attuned to the burden of credit card debt than previous generations. They’ll avoid it at all costs, which means seeking alternative forms of financing for more expensive purchases. Unwillingness to pay high interest rates and the demand for more favorable terms has led to consumer financing as a mainstay online.
Younger shoppers are much more amenable to choosing their own repayment terms and accruing debt that’s less burdensome than traditional credit card debt. With fixed monthly payments and a clear payoff date, it’s easier to stay on top of financed purchases.
We’ve come a long way from traditional financing, which was a point-to-point exchange of funds by a single entity to a single borrower. Today, platforms like ChargeAfter harness entire networks of lenders to provide consumers with a variety of checkout and point-of-sale financing options. Regardless of the amount financed or the credit score of the consumer, there’s almost always one or more options for financing available.
Sourcing financing from multiple lenders also casts a wider net for those eligible for financing. Checkout financing isn’t just for prime applicants—it can extend to near-prime and even sub-prime borrowers thanks to a broad scope of lenders with their own unique terms.
All these variables add up to one very clear point: Consumer and point of sale financing is here to stay. Purchases will continue to get bigger, consumers will (hopefully) stay cognizant of their buying habits and lending will continue to get easier. As a result, financing will become more common for larger online purchases.
It’s a trend benefitting consumers and retailers alike! Consumers get the buying power they need, with terms they feel confident in. Retailers see the result of more sales thanks to more diverse financing options. It’s the way of the future in a world of eCommerce that’s growing every day.