Flexible payment options are becoming a necessity in a modern marketplace. Whether a merchant operates brick-and-mortar, online, or a mix of both, consumers must know that their needs are considered at the point of sale. One way to ensure that consumers have the buying power they need is to offer white label POS financing.
POS financing comes in many different forms, and there are various benefits for both the merchant and the consumer. To decide on implementing it, though, merchants need to know the tangible value it adds and what steps they take to start.
Point-of-sale financing is a consumer financing option that allows consumers to break a purchase up into low-to-no-interest payments at the point of sale. This process usually occurs just before the checkout process when consumers review their cart or at the register in a brick-and-mortar location.
The white label aspect refers to the software interface used to provide the financing. A white label software allows a third-party firm with extensive experience in software development, like Skeps, to connect merchants with lenders using a single, user-friendly platform.
Lenders are able to rebrand the interface as their own so that consumers credit the merchant and the lender for the ease of purchase, and the merchant doesn’t have to go hunting for a lending partner.
Merchants stand to gain quite a bit from offering a POS financing option. The following are just the beginning of the benefits offered from a quality lending platform:
When implementing any new change in operations, merchants are usually making their decision based on whether the change is going to generate an improvement in profits. The two measures that can inform this decision are conversion rate and average ticket size. Luckily, estimates show that merchants who offer POS lending in some form increase conversion by 20-30% and average ticket size by 30-50%.
Merchants can create a more reliable stream of income and increase the value of each purchase. In most industries, larger tickets tend toward premium products with better margins, which lifts averages across the board.
A quality third-party POS lending platform, offers top-of-the-line data security, giving merchants peace of mind knowing that they aren’t opening themselves up to any liability by using their product. Skeps does this by leveraging a unique blockchain platform to secure consumer data within a private client environment, giving merchants and lenders easy access to audit and review the success of their lending products.
Using a white label platform offers the same demonstration of value to the consumer that an in-house lending option would do without extra work. Merchants don’t have to worry about bug-fixing a software tool, or maintaining all of the data involved, because the platform developer takes care of all of that for them.
The benefits for consumers are straightforward. Increasing buying power for consumers at the point of sale offers them both freedom and convenience in the following ways:
Many consumers delay or decide against purchases because of their large upfront costs. POS financing allows consumers to afford higher-value products at a given merchant and ensures they can buy when they need to instead of waiting until they have the cash in hand. This system comes in especially handy when purchasing for holidays and events because it makes it much easier to purchase things in a tight timeframe without worrying about the cost.
Most POS financing options come in the form of low-to-no-interest Buy Now, Pay Later (BNPL) platforms. These allow consumers to split up purchases without taking out a loan or putting them on a credit card, and they save a significant amount of money on interest this way.
BNPL programs usually don’t report to a credit bureau the way that a loan or credit card would, and approvals are typically done through a “soft” credit pull that doesn’t show up as a hard inquiry on a credit report. As long as consumers make their payments on time, BNPL plans won’t affect their credit at all.
Skeps offers a cutting-edge POS lending platform that links merchants and lenders together using a clean, secure, user-friendly platform. Our platform speeds up approvals, keeps data safe, and gives both merchants and lenders easy access to useful analytics to monitor their campaign performance by leveraging blockchain technology.
Do you have more questions about white label POS financing? Request a demo or contact us at support@skeps.com.