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Hack your way to higher average order values with checkout finance

October 19, 2023

In a world of lagging retail demand and inflationary pressures, retailers are searching for ways to protect and boost their revenue. To successfully do this, you’ll need to analyse your average order value (AOV) - which is the average amount spent by a customer each time they shop at a certain store. Checkout finance, which includes product types such as instalment loans, digital credit and Buy Now Pay Later, can lift AOV by 30-50% according to experts.

In this blog, we’ll be exploring how offering your customers finance options at checkout boosts AOV. And, how merchants can maximise any increase by choosing the right partner and solution for their business needs.

Improving your customer affordability

Checkout finance solutions allow shoppers to spread the cost of their purchases over time. A fitted kitchen that costs £6,000 will be out of reach for a lot of consumers, but if you offer them the ability to pay monthly instalments of £500 across twenty months - then they’re more likely to go through with the purchase. Moreover, they’re likely to spend more as they now feel financially empowered - whether that means switching to high-end worktops or adding a kitchen island. 

Merchants can go one step further by   Using the above example, if a merchant’s target audience is highly sensitive to APRs, then offering interest-bearing credit as opposed to interest-free credit (0%) will lower order values. This is because in this situation it’s likely a lot of this customer base would opt for cheaper kitchen units that they can afford upfront rather than take out finance and pay the accompanying fees.

Excellent customer support

Brand trust and order values are inextricably linked - so the perception your customers have of the payment methods you offer at checkout is crucial. If they’re not familiar with the finance provider or broker you’re partnered with, or if they have a bad reputation, then this can have a knock-on effect and discourage them from spending significant amounts. This is why you should look for a partner who is FCA-regulated, as there’s a greater onus on consumer protection. Another way to build trust is to leverage social proof of customers who’ve had great experiences, perhaps by sharing testimonials or the Trustpilot score of your chosen partner at some point in their journey.

Awareness and confidence

It’s important you signpost early on in your customer journey that you offer checkout finance, whether that’s through in-store POS advertising, online smart widgets or even through your email signatures. Your customers will base their shopping decisions on this information, often opting for premium options as they know they’re able to choose a flexible repayment plan later on at checkout. The right partner will provide you with all these types of materials and be able to respond to any bespoke requests. 

However, even if your customers are aware, some will be unsure whether they’re eligible for finance. This will ultimately discourage them from applying, and consequently from spending more. The two main methods that will help mitigate this and build confidence are:

  1. Eligibility checker tools - which normally consist of a few simple questions that are then used to provide a provisional decision (via a soft credit check) on a customer’s likelihood of being suitable for finance. Customers can use these tools before they even add anything to their baskets.
  2. Checkout finance products that come with a pre-approved spending limit, such as digital credit. These allow pre-existing customers to quickly log in and pay with their remaining account balance, without the need to apply for finance again.

A solution and customer journey that creates this awareness and confidence will undoubtedly increase your order values even further.


The right checkout finance solution will enhance your customers’ sense of financial empowerment, their faith in your brand and their confidence in having a positive payment experience. All of this can significantly boost average order values and provide retailers with a strategic advantage, driving substantial revenue growth and helping retailers thrive in challenging times.