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Point-of-Sale Financing: Is BNPL the Future of Payments?

The past is gone, and today’s dynamic financial world is here with a wide array of novel payment solutions. From credit cards to wire transfers, one no longer needs to wait to send or receive payments. 

That’s not all! Thanks to advanced fintech solutions globally, more and more people without access to traditional financial services can buy goods and pay for services that would otherwise be unavailable. For example, consumers can easily access point-of-sale (POS) financing methods without going through burdensome paperwork and credit checks – with Buy-Now-Pay-Later (BNPL) being a popular option

So let’s explore what is point of sales financing is and how BNPL can benefit consumers and merchants. 

What is Point of Sales Financing?

Imagine having the freedom to make purchases without worrying about payments! Well, there is no need to imagine. With POS in finance now you can afford big-ticket items for real and treat yourself and your loved ones. 

POS financing is a popular financing method that allows customers to make purchases and pay for them over time via flexible incremental payments. POS lending can happen either in-store or online. In fact, pushed by the coronavirus pandemic, online shopping and loans have become the norm for many people, especially Millennials and Gen-Z. Interestingly, data shows that 37% of Millennials and 44% of Gen-Z shoppers are expected to use BNPL by the end of 2022. Are you one of them?

Point-of-sale loans are highly popular as they can be used to purchase almost anything, including jewelry, electronics, travel services, beauty procedures, and even online courses. That’s right! Nowadays, you can find BNPL buttons placed on travel, healthcare, automobile, and edu websites. You can find one even on Etsy! Because one deserves to live now, pay later.

Why Point of Sales Financing

But why should one use or offer BNPL? The benefits are plenty. POS financing methods such as BNPL are highly convenient payment options that come with less stringent eligibility requirements and zero interest rates. As stated earlier, such payments are ideal for customers without a well-established credit history. 

Besides, customers can choose repayment terms that fit their needs and pay over time – no more lump sum payments. Depending on the lender, a shopper can pay in four installments, over 12 months, or more. The only thing to consider is late payments. In the case of a late or missed payment, a shopper usually has to pay a fee. 

The best aspect is that all parties benefit from POS financing. For merchants, for example, BNPL can open new revenue streams. Interestingly, Spencer Research points out that BNPL users’ carts are 80% higher in value than those who do not use POS financing

Offering flexible payment options leads to:

  • Increased sales
  • Lower cart abandonment 
  • Higher-priced deals
  • Customer satisfaction
  • Enhanced brand loyalty

Point of Sale Financing Companies

Given the benefits BNPL solutions offer, it’s no surprise that businesses partner with third-party lenders and financial technology companies. Wondering which provider or app to choose? Well, some of the most prominent providers are Affirm, Afterpay, and Klarna.

That said, not all of them come with personalized features, something Tarya Fintech is here to resolve. Tarya provides not only seamless integration of BNPL into the checkout process but much more. Tarya’s BNPL 2.0 helps businesses access:

  • One-stop platform
  • Customizable modules
  • Improved risk assessment
  • Cost-effective solutions
  • Short deployment times
  • AI-driven data
  • Customer insights
  • Transparent cash flow management

And much more.

The Future of POS Financing | Final Thoughts

To sum up, POS or installment financing as a type of unsecured loan has always been a popular payment option. As we explained earlier, BNPL is one of the most popular payments, which nowadays is not limited to furniture, clothes, or electronics. 

No! The future of BNPL keeps evolving, and now such payment options are available in more and more sectors, including travel, education, and beauty. Believe it or not, you can even book a flight and pay over time while exploring the world and its wonders. How cool is that? 

So, what does the future hold for BNPL users? We’ll have to wait and see. One thing is for sure. New players like Tarya are here to stay and revolutionize the current financial landscape and provide a better financial future globally.

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