The Covid-19 pandemic saw a change in consumer expectations, with shoppers wanting quicker and more flexible customer payment options. Offering different payment options for customers can help retain them, improve customer loyalty and stand out against your business’ competitors. Flexible payment plans can also make high-value items more accessible to customers, as they’ll be able to spread the cost over time, making those more expensive purchases feel more affordable.

Here, we’ll dive into the benefits of offering customer payment options at the checkout and how payment plan options for customers can give your business the boost it needs to thrive in a competitive market.

What is a point-of-sale finance option?

A point-of-sale (POS) finance option is a type of customer financing that allows your customers to buy your products or services through a payment plan. This gives customers the chance to spread the cost of items (usually high-value items like appliances, furniture and electronics) into affordable repayments over time.

Point-of-sale finance is usually displayed as a customer payment option at the checkout, and if the customer is approved, they are able to complete the purchase and pay for the goods or services in instalments.

Customer finance can be tailored to the needs of your business – you’ll need to decide if you’ll choose to offer 0% interest or interest-bearing finance.  You’ll also need to decide on how long your customers’ repayment period will be. It’s important that your customers understand the terms and conditions of their borrowing beforehand to ensure they can afford to keep up with their repayments, as falling behind with payments could lead to a negative impact on their credit file.

Why multiple customer payment options are essential for staying competitive

In today’s world, customers expect more choice and flexibility in the products and services they are presented with. They understand that the market is competitive and if they can’t find what they’re looking for in your business, they’ll find an alternative elsewhere. Multiple customer payment options keep your business relevant, competitive and able to fulfil the expectations and needs of your customers.

Here are just some of the reasons why multiple payment options are essential for businesses looking to stay ahead of the competition:

• Increased sales: The more customer payment options available, the more likely they are to buy. If a customer wants to spread the cost of their purchase over time with credit but you only accept debit cards, they may be less inclined to purchase. Offering payment plan options for customers lets them pay in a way that’s most convenient for them, which can help increase your sales and ensure a steady cash flow.

• Customer preferences: Each customer is different and will have their own financial circumstances. Some customers will prefer to pay in full upfront with their debit card or through Apple Pay or PayPal, while others will look for the flexibility that comes with POS finance. Offering multiple payment options means you can cater to a range of preferences.

• Improved customer experience: Having several customer payment options can improve your customer experience. By allowing your customers to pay in a way that suits them, they’re more likely to return to your business, recommend you to their network and leave positive reviews.

• Competitive advantage: Today’s market is more competitive than ever, and offering multiple customer payment options is a great way to stand out from the crowd. Customers are more likely to choose your business that caters to their needs, than one that doesn’t.

The importance of payment plan options for customers in 2023

Customers appreciate the ability to spread the cost of their purchase over a period of time, so they can budget and manage their finances, while being able to access the goods they want. Providing payment plan options for customers can allow them to feel in control of their finances, particularly during periods of economic uncertainty.

Offering payment plan options for customers can also improve customer loyalty and retention. Customers are likely to appreciate you offering flexible payment options at the checkout that meet their needs, and recommend you to their friends and family as a result. POS finance can also offer you a competitive advantage over businesses that don’t yet offer customer finance options, and may encourage your customers to return to your business in the future.

How to implement payment plan options into the checkout process

If you’re set on implementing payment plan options into the checkout process, here’s how to get started:

1.      Choose your finance lending provider

The first step is choosing a finance lending provider that best suits your business. They need to understand your business’ goals and the needs of your customers. Do they offer flexible financing options? Can they support you throughout the integration process? If you’re new to customer finance, you’ll want a provider that can walk you through the ins and outs of customer finance so you understand how things work.

2.     Decide on the right finance model

Next, you’ll need to decide on the right customer finance model for your business and your customers. You’ll need to decide on the repayment time and if you’ll offer 0% interest finance or interest-bearing. Usually the larger the purchase, the longer your customers will have to pay back what they owe, to help make expensive goods feel more affordable.

3.     Add your customer payment options to the checkout

Make sure all your payment options are clearly displayed at the checkout, so POS finance feels as accessible and easy to use as possible. Planning on introducing customer finance in-store? Make sure your cashiers understand how it works completely, so they can explain the process to customers with ease.

4.     Let your customers know about your new financing options

Your customers won’t make use of your new payment plans if they don’t know about them in the first place. As well as displaying customer finance at the checkout, be sure to let them know about the options now available to them through social media and your mailing list. Customers who may have previously abandoned their cart may go back to purchase after hearing about your new financing options.

Providing flexible payment options for your customers with Duologi

Looking for a point-of-sale finance provider that can understand your business’ goals and customers’ needs? We like to think we’ve got what it takes. Our customer finance options can give your business the boost it needs to retain customers, drive sales and improve customer loyalty. With a simple, one-page application, we can get your customer finance up and running in a matter of days. Not sure if offering customer finance is the right route for you? We can offer you a demo of our services so you can see the benefits that POS finance can offer to your business.

Please bear in mind that the availability of credit will depend on the customer’s financial status and credit history.

Book a consultation to find out more

Ready to see how offering multiple customer payment options can transform your business growth? Get in touch with us today to find out more.