* This chart and data were pulled from The Point-of-Sale Financing Report by Business Insider Intelligence. Purchase the report here to get immediate access to the full analysis. |
Point-of-sale (POS) financing solutions, which enable customers to break up payments into installments, have surged back into popularity in the years since the recession, after fading with the advent of credit cards. Unsecured personal loans was the fastest-growing debt type in the US in 2018, per TransUnion. Its 19% year-over-year spike could be partially indicative of the rapid uptick in alternative financing solutions.
For merchants, offering POS financing options can allow them to better compete in the crowded retail environment. Merchants can see upticks across metrics from offering POS financing options, including: |
- Improved conversion rates and curbed cart abandonment. Cart abandonment is one of the biggest hurdles that e-commerce merchants face: 81% of shoppers have abandoned an online cart. Laying out installment payments at checkout could help customers plan out their spending and boost conversion rates. Klarna boasts a conversion rate that's 44% higher compared with purchases made with credit cards.
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- Increased average order value (AOV) and sales volume. Individual order values typically increase when consumers use POS financing options, which could be a major incentive for merchants to offer these options: AOV is 68% higher with Klarna, for example.
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- Widened customer base and improved cash flow. POS financing options could make otherwise out-of-reach purchases more...
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| This is just a preview of the information and insights you'll find in The Point-of-Sale Financing report by Business Insider Intelligence. Purchase the report today to access the full analysis. |
