By James Bradley
DivideBuy
The way people pay has transformed over the last few years, perhaps for good. It's fair to say that consumer spending habits have well and truly embraced ecommerce in all its forms, whether it's shopping on their mobiles, click and collect, or enjoying the convenience of credit finance for customers at the checkout.
If retailers need evidence that offering POS finance will benefit their businesses, success during Black Friday, Cyber Monday and Cyber Week 2021 is just one of several indicators of what a big hit interest-free credit is with shoppers. Fintech news reported on Dec. 2, 2021, that there was a 51 percent increase in the use of buy now, pay later (BNPL) payment methods in Europe during that period, compared with 2020 (bit.ly/3I7J1Fm).
And year-over-year projections for BNPL were rosy as 2021 was coming to a close. According to U.S. consulting firm Cornerstone Advisors, consumers were expected to make $100 billion in BNPL purchases in 2021, up from $24 billion in 2020 and $20 billion in 2019.
What does this tell us? That retailers can enjoy immediate positive results by extending payment choice at the POS. What's driving this momentum? It's the fact that POS finance and interest-free credit, enabled by innovative lendtech solutions, are incredibly convenient ways for people to finance purchases, particularly high value items, which can be split into simple and seamless installment options.
While it's clear that customers are demanding more flexibility and choice in payment methods, for many brick-and-mortar retailers, ecommerce is still uncharted territory, leaving them with little choice but to explore the many options available at their fingertips.
To offer POS financing to their customers, retailers can embrace a combination of offline and online payment options that can seamlessly blend both channels with innovative and frictionless lendtech solutions. Not only do retailers get the best of both worlds, with a perfect blend of in-store and ecommerce experiences, they can unlock new sales opportunities.
So, what can retailers do to create more customer payment choices, including POS finance, at their online or physical checkout? The solution is surprisingly simple. There's no need to install new POS terminals in-store or to contract with multiple payment solution providers to offer different payment methods.
These days, POS finance solutions can be easily integrated into retailers' existing platforms, with no disruption to their operations. In many cases, all it takes is a simple POS credit plugin, and retailers can begin to offer interest-free finance in their existing checkout system.
These solutions can be implemented at the retailer's checkout alongside popular shopping carts like WooCommerce and Shopify. Retailers can choose to either integrate solutions into their systems themselves or have a provider do it on their behalf. It's important to seek a company that offers reliable support that provides the right guidance and expert advice to make the most of interest-free credit.
According to a 2021 interview with Sandeep Malhotra, executive vice president, products and innovation, Asia Pacific, for Mastercard published by the Paypers, bit.ly/3Gx8UxU, BNPL POS solutions can increase average basket values by more than a third.
Retailers can also tap into a goldmine of consumer data to fine tune marketing strategies and cross-selling opportunities, future-proofing them as ecommerce and in-store buying journeys continue to merge.
For any retailer in the fiercely competitive landscape, the accessibility and ease of implementation of BNPL makes it a must-have at any checkout. With the right expert support by their side, retailers can be assured of maximizing sales opportunities and ensure that 2022 reaps even more revenues. BNPL is a big hit and is here to stay. 
James Bradley is head of business development at DivideBuy, a consumer retailer credit provider founded in 2014. DivideBuy works in partnership with over 500 retailers to provide retail POS credit solutions, including flexible integrations to deliver higher basket values, reduced cart abandonments and higher sales. For more information please visit https://dividebuy.co.uk/.
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