Consumer financing and payments innovations help businesses thrive

When it comes to how they purchase and pay for items, consumers have more choices than ever before. As businesses look for more ways to improve the shopping experience, programs that spur bigger sales and improve the customer experience offer serious value.

Consumer financing programs — which offer shoppers attractive solutions through credit cards with promotional financing or installment loans — are some of the best ways for businesses to boost sales. Read on for more information about the benefits of consumer financing, and how retailers can create a financing program that helps attract new customers, drive sales and build customer loyalty.

What is consumer financing?

Consumer financing programs provide loans or lines of credit to individual consumers, offering them more choice when it comes to making purchases.

Imagine a customer who is shopping online for a new couch. When considering the purchase, the buyer knows that cheap furniture probably can't stand up to kids, pets, life and time — but also thinks that an investment in a high-quality couch is financially out-of-reach at the moment.

If the retailer has a consumer financing program in place, they can offer this customer application for a store credit card at the point of sale; allowing the customer to secure the perfect couch without having to pay the full price upfront. The retailer might also offer a program that gives the customer the option to pay through an installment loan, monthly payments or offer incentives through their loyalty programs. Providing one or more flexible payment options can help complete the sale.

Why consumer financing pays off

Though consumer financing programs can take many shapes, the ultimate goal is to improve the customer experience by providing customers with more choice in-store, in-app  and online, where customers have come to expect and use quick financing during checkout. In fact, Synchrony found that one third of Synchrony cardholders say they would walk away from making a purchase if financing wasn't offered, and 14% would turn to a competitor who did offer financing.*

Consumer financing benefits for businesses

Serving millions of people and financing almost $166 billion in sales, we’ve learned a lot about retail. The Synchrony 2021 Major Purchase Study builds on this knowledge to help business owners understand the exact benefits of consumer financing, and how its availability affects customer behavior.

Bigger purchases: Customers buy bigger items and buy more often 

Our study clearly demonstrates that consumer financing helps customers make bigger purchases — transactions that businesses could lose out on without more payment solutions. Responses show the measurable impact when customers have more payment options:

• 71% of Synchrony cardholders thought financing made big purchases more affordable.
• 25% of Synchrony cardholders said they bought more because they could finance more.
• 34% of Synchrony cardholders said without financing, they might shop elsewhere.

Increased customer loyalty: Shoppers know you're meeting their needs 

Offering financing to customers quickly, easily and safely has become increasingly relevant for shoppers. In fact, our study shows that 75% of shoppers who researched financing did it online, with mobile searches rising from 17% in 2015 to 40% in 2021.

This move toward digital-first transactions continues along the customer buying journey. Surveyors report that mobile credit applications now account for 11% of all applications — with 30% of users applying online in total — with shoppers citing privacy and convenience as the primary reasons for applying online. For those who opted for in-store experiences, 70% said that they chose this option because it was an easy part of the check-out process.

The data shows clear benefits of offering a broad array of payment solutions for customers, underlining the need for businesses to seek out consumer financing programs and partners who have the data, insights and expertise to provide what customers are asking for now, and what they're likely to ask for in the future.

Consumer financing and payments innovations help businesses thrive

Our investments in technology across multiple platforms — in-store, online and mobile — allow us to meet consumers where they are. We continuously work to develop better, easier, safer and faster programs and tools for our partners and customers. Some of the ways we’re helping to drive growth and opportunity across the board include:

• Seamless and no-contact payment solutions.
• Flexible payment options, like installment loans, lines of credit and "buy now, pay later" solutions.
• Enhanced tech for easier customer experiences, like fast and efficient credit decisions right from a mobile phone, or in some cases, even managing payments right in Amazon Alexa.
• Investments in technology that integrate credit capabilities with retailers' mobile apps.

How to offer a consumer financing program

If you are considering a consumer financing program, we provide customized, innovative solutions that help more people find and purchase the products they need and want. 

To learn how you can help supercharge your sales, contact us.

*The Synchrony 2021 Major Purchase Study