Capture More Revenue with Zero-Down Payments
With so many zero-down payment solutions now available, customers want the option to choose what works best for them at the checkout. Big companies like Amazon, Apple, and Square are jumping on the zero-down payment trends by implementing solutions like buy now, pay later (BNPL). Additionally, experts predict BNPL global eCommerce transactions will double to 4.2% by 2024.
Many felt the financial burden from the changing state of the economy has caused consumers to rely more heavily on these types of payments programs. In 2020, global e-commerce transactions using BNPL totaled $4.6 trillion, up 19% from 2019. However, consumers don’t just want zero-down payment options. They want digital options. Continuing a long-standing trend, more than four in five Americans used some form of digital payment in 2021.
Don’t get left behind: choose a point of sale (POS) system for your retail or restaurant business that offers zero-down payment options your business can offer to capture more revenue.
Different Ways to Offer Zero-Down Payments
There are many ways to offer zero-down payment options to your customers. With a retail or restaurant POS from Paradise, your business can quickly and efficiently provide your customers with more variety without incurring heavy fees.
Layaway: This is a purchasing method typically used in retail in which a customer places a deposit on merchandise—to “lay them away” for later pick up once they have the funds to pay the balance in full. Consumers typically choose this type of payment plan for big-ticket items like electronics, furniture, or jewelry, allowing them more time to pay for products they might not have purchased otherwise.
House Credit Lines: This is a purchasing method typically used in restaurants or retail businesses. A charge is placed on the account for each transaction, and the customer is billed later. House credit lines simplify the payment process for you and your customers. For example, if your restaurant supplies weekly lunches to a local business, you can manage their orders from your POS and invoice them at the end of the month.
When considering upgrading your POS system, it’s crucial to offer a solution that provides consumers the ability to expand their financial means and maximize your revenue. In addition, with more businesses adopting zero-down payment methods, not offering payment options puts you at risk of falling behind.
A Credit Card Alternative
The current state of the economy changed many aspects of how customers purchase and pay. Some 21 percent of millennial consumers didn’t have credit cards in 2021, up sharply from the 14 percent from the year before. Zero-down payment solutions are an excellent option for this type of consumer with no compound interest and looser credit checks.
While credit cards are still widely used, providers are scrambling to offer a similar option to get into the zero-down payment game. So if merchants want to get ahead, now is the time to rethink payment options.
Seize the Opportunity
Now is the time to adapt your payment strategy. Today’s consumers demand options when it comes to payment solutions. A study from Netfluential and PayPal found that among consumers between ages 18 to 39, 28 percent were more likely to shop at a merchant again if it offered a BNPL option, and 32 percent would make purchases they would’ve otherwise postponed.
Seven in 10 younger consumers said they’re likely to use BNPL for large items like furniture or other purchases over $1,000. In addition, BNPL offers flexibility to buy more expensive items and creates shopper loyalty, driving revenue growth for retailers.
How Paradise POS Can Help
Not only do we have a robust, feature-rich POS system, we also know the payments industry. Our POS system seamlessly allows our merchants to implement house credit lines and layaway. Or, if you are looking to start your business and need a POS for your location but are limited on funds, we can help. With our Zero Down Program, Paradise POS can provide systems to clients with minimal to no initial investment funds needed. To qualify, merchants need to run at least $10,000 in credit card sales per month.
Are you looking to partner with a POS provider who can help grow revenue? Contact us!