Embracing the world of checkout finance beyond BNPL
In this dynamic financial landscape, businesses can unlock tailored credit solutions by exploring the wide-ranging checkout finance ecosystem.
Checkout finance, the overarching name for payment options offered at the point of purchase, has been offered in one form or another for years, however, in recent times there has been a sharp rise in Buy Now Pay Later (BNPL) offerings. According to strategic checkout finance platform Deko, while BNPL is the most well-known, there is a variety of checkout finance solutions available and by exploring these, merchants can find credit choices that are more flexible and suitable for their business.
As the demand from consumers for flexible payment options continues to rise, checkout finance is now required to suit a large variety of sectors, customer profiles and basket sizes. This has driven the need for a diverse range of credit solutions that each serve a unique section of the market. The development of new products (e.g. digital credit accounts), along with the improvement of existing ones (e.g. instalment finance), means merchants can now offer finance coverage for the full breadth of their product range and to all their customers.
“BNPL is the most familiar form of checkout finance for many consumers with the rise in popularity of the ‘pay in X’ payment offers. These solutions are good for smaller baskets, but the term ‘BNPL’ is often used to refer to all forms of checkout finance. In reality, there are many more options available for merchants and their customers”, said Melanie Vala, CCO at Deko, “For example, monthly instalment-based products, which were actually available before BNPL emerged. And, with the evolution of technology, they now feature frictionless customer journeys along with longer-term repayment options. This solution is, therefore, better suited for higher transaction values which are common in industries such as electricals, furniture and home improvement.”
“As consumer demand and macroeconomic challenges shift, merchants must get ahead so they can support their customers with tailored finance offerings that ultimately lower basket abandonment and boost brand loyalty.”
“Merchants should look beyond BNPL solutions, partnering with a suitable strategic checkout finance partner that offers more comprehensive coverage. Checkout finance products such as digital credit not only reach out to a wider range of consumer basket types but also meet the ongoing demand for flexible payment solutions at the checkout,” Vala concluded.
