Why Retailers Should Have No Fear When Implementing New Payment Technology
When shoppers encounter a retailer that doesn’t accept their preferred payment method, 55 percent will spend less or go elsewhere according to a recent study by Adyen. Yet, payment preferences can involve an array of layered factors.
Payment options should go beyond offering credit card or cash to allow shoppers to finance purchases, especially higher-priced items. Still, consumers who apply for credit and get denied have a less-than-ideal shopping experience due to the application process. To eliminate this risk when evaluating financing as another payment option, consider a solution that accommodates the full applicant FICO range and ensures the application process is frictionless: one application and cascading offerings that satisfy diverse credit profiles. Ultimately, retailers need to diversify payment systems to accommodate the needs and wants of any shopper at any ticket price, and across both in-store and digital channels.
Integrating new financial offerings into existing technology and making sure the application process is frictionless can seem like a daunting task, albeit one that can drive sales and customer satisfaction. To overcome this perception, we asked three leading fintech organizations for an inside look at how a frictionless, one-app multiple finance option can be launched easily and why it’s worth taking the leap.
One solution is a web browser-based financing application process that allows for a simple integration that yields flexibility to bring more value. Rather than setting up different platforms for in-store kiosks and mobile solutions, browser functionality allows for an instant application anywhere a web browser can be accessed.
When consulting with retailers, Versatile Credit's Vice President of Sales and Marketing Kevin Lawrence cites a 20 percent increase in applications, which he attributes to Versatile’s seamless web browser-based financing capabilities and the private nature of the consumer application process. Furthermore, by advocating prime, second look and no-credit-required options, Lawrence touts the key performance indicator that more than 90 percent of consumers can be served regardless of credit standing.
ChargeAfter offers a simple plug-in that quickly integrates into the various leading and in-house e-commerce platforms online retailers use. ChargeAfter’s CEO, Meidad Sharon, says it takes a maximum of two hours to fully incorporate the software into a retailer’s website. Once installed, the online multi-lender consumer financing and credit platform can be leveraged to encourage early financing applications so the full range of consumers (with any credit profile) know how much they have to spend, which makes them likely to complete the purchase even before they start the checkout process. Additionally, shoppers can alternatively complete the fast financing application during checkout and receive the best financing or credit offer personalized for them. Simple to install, Sharon notes retailers have seen a 30 percent to 55 percent increase in credit approvals and 40 percent increases in revenue after integrating with ChargeAfter.
Unified Commerce Integration
STORIS is a leader in retail software solutions for the home furnishings industry, where most purchases are in-store despite an estimated 90 percent of purchasing journeys beginning with an online search. Consumers demand a seamless experience and for several factors to be consistent and equal across channels, according to STORIS Product Manager Donnie Surdoval. “This includes access to their profiles, shopping carts, inventory information, pricing, promotions, financing options and delivery fulfillment.”
STORIS’ Unified Commerce technology ensures this consistency by integrating these elements for real-time updates between consumer touchpoints and the retailer’s business intelligence and inventory management software. As part of this seamless experience, shoppers with any credit profile could apply online to find the amount for which they're approved, and complete the journey in-store. By offering a seamless, omnichannel shopping journey, STORIS users can typically expect to measure improved acquisition costs when compared to the average ticket and average lifetime value of a customer.
To Sum it Up
Financing programs should include multiple options for serving consumers across the FICO spectrum, and these options should require just one application and cascade for a seamless transition between options. When evaluating your current situation, know that financial tech providers can help easily onboard new technology to fulfill consumer needs and help you stop losing a massive 55 percent of consumers due to insufficient payment options.
Joe Ferguson is director of new business development at Fortiva Retail Credit, a consumer credit program focused on second look financing.
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