• James Bradley, Business Development Director at DivideBuy


• 08.11.2021 12:00 pm
#secure #sales

By James Bradley, Business Development Director at DivideBuy

As we head into one of the most hotly-anticipated peak sales season ever, with retailers across every sector looking to capitalise on a post-pandemic shopping boom, point of sale (POS) finance is offering merchants an effective tool for secure real success and real sales.

So, as hordes of eager shoppers load up their laptops and mobiles, all ready to dive into the world of Black Friday offers and discounts, how do retailers make best use of interest free credit (IFC) and Buy Now Pay Later (BNPL) solutions to boost profits and secure success this peak sales season?

Knowledge is power

The fact is that no one knows their customers better than a retailer. Merchants know what sells and what doesn’t, what product ranges or bundles are on an upward trend and what is falling out of favour – and leveraging this knowledge is key to seeing sustained sales success.

The best BNPL solutions are truly customisable. Retailers can set them for certain higher-value bundles or product lines that provide better returns, or on whole ranges to drive sales for new product launches. Utilising customer insights and buying behaviours to create a structured and strategic BNPL approach will provide the best returns for the smartest merchants.

Fun for all ages

One of the most common misconceptions about BNPL technology is that it is exclusively the preserve of the younger, credit-savvy, Gen-Z consumer that is looking to spread the cost of their latest fast-fashion purchases. The reality couldn’t be further from the truth; adoption of IFC solutions is present across all age groups, with everyone from Millennials to Baby Boomers taking advantage of the tech to fit their purchases to their financial situation.

However, there are differences in what these different age groups look to use BNPL solutions for, and the types of IFC offerings that attract them. Experienced consumers, have a much higher percentage of home ownership, leading to a wider use of BNPL in areas such as furnishings and homeware. Understanding the generational differences in IFC usage is critical for merchants who are looking to make the most out of the technology.

The simple solution to secure more sales

Merchants are always looking for ways to boost their sales and improve their conversions; but it’s no use adding in the latest tech if it’s too complex to set up and manage without taking time out of a retailer’s packed schedule. 

This is the beauty of BNPL or LendTech in its purest form. The latest solutions provide a marked boost to everything from basket values to conversion rates – all without requiring a lengthy set-up or increased management time for merchants. Checkout plug-ins can be easily set up with APIs by either the retailer or the LendTech provider, while every aspect of the lending process is handled by the provider. This means that all a merchant is responsible for is signing on the dotted line and reaping the rewards from the flexibility and choice that BNPL provides.

BNPL  and IFC solutions can offer huge benefits for both consumers and retailers alike. Consumers gain the ability to fit their purchases to their financial circumstances, extending their buying power in a responsible way, while merchants can see their average basket values increase by more than a third, as well as a 43% jump in big ticket item sales. The benefits are clear – and the smartest merchants are those that are taking advantage already as we accelerate into the biggest selling season of the year.