Retail continues to evolve, with consumers looking for better ways to shop for their favourite products and services. Flexible payment methods are smarter options that can help you boost basket sizes and increase sales. And in this guide, we’re revealing how you can empower your customers by partnering with retail finance providers to offer flexible finance.
The rise of digital payments
In 2018, there were 41.8 billion transactions made via eWallets. Since the pandemic, the demand for alternative payment methods has only increased, with options like buy now, pay later proving to be particularly popular with millennial buyers.
Today, it’s vital that merchants provide flexible finance for their customers. Doing so will empower those buying your products and services, and you can stay ahead of the latest retail trends while providing a seamless experience.
But what is it about flexible finance that’s so appealing to customers, and how do you find a retail finance provider to partner with and offer more options at checkout? Read on to find out.
How retail finance providers empower customers
Unlocks buying potential
Online checkout drop-offs is a genuine problem faced by many merchants. The global cart abandonment rate is around 86 per cent, and one of the key reasons is a lack of consumers’ preferred payment options. This is especially true for younger buying demographics.
For Generation Z and millennials, who make up a vast shopper base, methods like buy now, pay later have become the de facto way to make transactions online. And when they’re not available, the probability of checkout drop-off increases.
But when these buying demographics have their preferred options, they feel more empowered at checkout. By offering payment alternatives, you can facilitate the needs of a vital customer base. You just need to find the right retail finance provider.
At Deko, for example, we offer a multi-lender option that provides access to multiple lenders in the background and ensures more customers qualify for finance. If the customer is rejected by the first lender, they automatically move onto the second one without their buying experience suffering from any interruption.
Having access to these kinds of payments helps unlock buying power, as customers have increased finance options at their fingertips and are more likely to qualify for lending. The result is more people completing at checkout and fewer basket abandonments.
Increased purchasing power
As well as seeing a decrease in checkout drop-offs, partnering with a retail finance provider can also increase consumer spending. Being able to spread the payments over several months with digital credit options gives buyers more flexibility and greater financial freedom.
As a result, they feel confident knowing they can make larger purchases without facing high credit card fees. In fact, younger buying demographics continue to shun credit cards in search of smarter ways to pay, like alternative payment methods.
Offering flexible finance means you can drive up basket sizes, unlocking plenty of buying power for your goods and services in the process. And flexible finance options help all kinds of businesses prosper, whether they’re an online education business providing better access to learning or a jewellery company with higher-priced luxury items.
If customers know they have a transparent option for paying for goods without accumulating high-interest charges, they’re likely to feel more confident in their buying decisions. All of a sudden, those big-ticket items suddenly look more appealing than they did previously.
Such financial flexibility is one of the reasons why methods like buy now, pay later are becoming one of the biggest retail trends. Therefore, it should come as no surprise that alternative payment options increase the chances of bigger basket sizes with consumers.
Provides a better customer experience
Nailing your customer experience is, without a doubt, the key to being successful. In today’s market, consumers have so many shopping options, which means they’re happy to move from one business to the next while looking for experiences that cater to their needs.
We have become an on-demand economy, and therefore expect the shopping experience to meet our requirements. But make no mistake, once a customer settles on a brand they enjoy using, they will continue to show loyalty.
Ninety percent of customers are likely to purchase more than once, so there’s a huge market for repeat buys that you can tap into. By working with a retail finance provider to offer digital credit lines, you can provide your customers with a better experience and benefit from repeat business.
These credit lines can also extend to physical commerce. Bricks and mortar stores can offer alternative payment methods and provide a seamless experience, whether customers shop online or off.
Giving your customers financial flexibility provides them with a more refined experience. As a result, they will feel more inclined to shop with you, knowing that you’re the merchant who thinks about its customer base and provides payment options in line with their needs.
Summary: put the customer first with retail finance
Partnering with a retail finance provider allows you to offer customers more options at the checkout stage. That means you can reduce checkout drop-offs, increase basket sizes and empower customers with finance options designed for a better all-round shopping experience.