How to offer Retail Finance

Retail finance (or point of sale finance) is a payment option which lets consumers spread the cost of a purchase over a series of smaller instalments.

Retail finance is an excellent way to widen your customer base, without impacting your profit margins. The finance provider (Zopa) pays you, the merchant, for the order upfront, then handles collecting repayments from the customer directly – making it an ideal solution for all parties involved.

Here’s how to make it work for your business

Figure out why you want to offer retail finance

Think about the sales goals you want to accomplish with retail finance options. Do you want to expand your customer base, increase conversion rates with your existing customers, or boost uptake for your higher-ticket items? Understanding the business strategy behind your decision to offer retail finance options is the first step to success.

Choose your retail finance provider

When considering a finance provider, it’s essential to identify your specific needs. Think about interest free and interest bearing credit – do they offer both options? What term lengths can they give you and what commercial rates will they charge you? It’s also important to choose a provider with proven experience in your sector, who can showcase a strong approval and conversion rate record. 

Get your finance solution up and running

Your finance provider should work with you to embed and integrate your finance solution into your eCommerce platform. Some providers offer this service, end-to-end, while others also permit merchants to self-install the solution themselves. Ideally, you should find a provider like Zopa who has built custom apps that integrate seamlessly with the popular eCommerce platforms.

Market your retail finance solution

Once your solution is live, be sure to advertise your finance options so customer know what is available – the earlier on in the buying journey, the better. However, when it comes to promoting finance offers, there are strict rules you need to follow to be sure you’re compliant with Financial Conduct Authority guidance. At Zopa, we train and equip all our merchants to safely and effectively promote finance options at multiple touchpoints in the customer experience.