83% want PoS finance from SME retailers
Written by Peter Walker
As buy now, pay later payment options continue to increase in popularity, new research has revealed that the majority of customers (83 per cent) would use point of sale (PoS) finance when purchasing from smaller retailers.
Duologi surveyed 500 small and medium-sized enterpristes (SMEs) across a range of retail sectors, finding that 28 per cent are now asking buy now, pay later options when shopping with such retailers.
A further 27 per cent of customers said they now expect PoS finance from SME retailers when shopping in-store or online.
The report also showed that the majority (79 per cent) of retailers have considered offering finance to their customers, with more than half (53 per cent) of retailers that do offer PoS finance saying they do so as it makes business sense.
According to Duologi, the race to keep up with the rapidly-evolving sector means that 23 per cent of SME retailers already offer PoS finance options in an attempt to keep up with their competitors - with 11 per cent fearing bigger retail players like Amazon will steal their customers, as they are able to provide multiple payment options, lower prices and have greater visibility online.
Michael Bevan, chief executive of Duologi, said: “There is no denying attitudes to alternative finance options have shifted in recent years, with the research showing the majority of customers now consider using PoS finance – a 10 per cent increase over the past two years - it is therefore important that retailers are evolving to meet changing customer expectations."
However, the research highlighted that 31 per cent of SME retailers currently do not offer PoS finance options, reporting that they weren’t convinced finance would drive return on investment for their business.
A quarter of SME retailers also felt that offering PoS finance was too much hassle, showing that finance providers in the retail sector still have work to do when it comes to proving the value of alternative payments partners.
Bevan added: “Almost a third of SME retailers do not believe finance would drive return on investment for their business, while a further 20 per cent think it is too expensive - given that finance drives on average 40 per cent growth for retailers, it seems that some lenders are failing to demonstrate how finance can work for their business.”