What is retail finance?
Retail finance is consumer credit at checkout without the need for a credit card or an external lender through the incorporation of a credit system into the customer journey. This can be done by integrating with a third-party API, like our own, which specialises in POS finance, or through the use of a merchant portal in-store
Retail finance options include interest-free credit, interest-bearing credit or ‘buy now, pay later’ arrangements. Most customers tend to choose the option of interest-free credit over interest-bearing as they only ever pay the full purchase amount. However, there are times when interest-bearing options offer longer repayment terms, enabling customers to purchase higher-ticket items with more affordable instalments. Even in cases where customers are unable to or choose not to purchase online, there is evidence that POS finance can drive significant revenue uplift in-store.
Increase your customer approval rates by up to 35%
The benefits of retail finance
With retail finance, you can expect to see a decrease in cart drop-off, higher average order value, improved cash flow and more. Retail finance is particularly beneficial when selling big-ticket items such as sofa suites, appliances and electronics. For instance, monthly instalments of £100 are often far more palatable and affordable to a customer than a one-off payment of £1,200.
As a retailer, you may be concerned that working with a retail finance provider may cannibalise your margins. However, research shows that conversion rates, upselling, and customer loyalty all increase when interest-free and interest-bearing credit is available.
Retail finance companies are giving retailers in all sectors the power to offer their products to a wider range of customers while increasing their revenue. From attracting new customers to better retaining existing ones, when you work with a retail finance provider the returns can be huge.
Boost your sales with interest free and interest bearing credit
The likelihood is that providing retail finance to customers will give your sales a significant boost and give you the ability to steal potential customers from competitors who do not offer credit options. By 2030, the retail finance market is forecast to be worth an impressive $3.27 trillion.
Most retail finance providers include retailers, broker platforms, finance companies and eCommerce platforms. Zopa supports its retailers (without the need for a 3rd-party broker) as a fintech company, integrating with the most popular UK eCommerce platforms.
Why Zopa
At Zopa, we provide retailer finance solutions across a wide range of sectors. Rather than needing your customers to seek external finance options, our structure allows them to complete an order directly through the checkout. We’re entirely independent and are not reliant on brokers or 3rd party lenders. Our unique credit decision engine removes the need for an underwriter and we are the sole lender of the credit we provide.
Using Zopa as your retail finance option can increase your customer approval rates by up to 35%, removing their need to require external credit support to help complete a purchase.
Today’s consumers aren’t a patient crowd. With smart technology, the world’s become used to getting what they want, when they want it. With our unique in-house technology, our retail finance option can help cater to this expectation; it’s a win-win, and the customer gets their item comfortable in the knowledge they are spreading the cost monthly.
One-step integration
Our industry-leading technology integrates seamlessly with your eCommerce software.
Customer checks out
Customers choose Zopa’s interest free or interest bearing credit options at checkout and commit to paying in monthly instalments. We handle all application and credit processing.
Get paid!
When you deliver the goods, simply confirm the details in your portal and receive fast payment. As the credit provider, we bear the credit and fraud risk, not you.
Book your free 20 minute online demo
Please note, a minimum turnover of £5M and minimum trading of 24 months is required to work with DivideBuy.
Guides to retail finance
What do merchants want from their lender?
Find out what you should expect from your lender. Are you getting the support you need? Here are five things to look out for!
Are You Ready for 2025? Retail growth strategies from the UK’s fastest-rising brands
Leverage retail finance, eCommerce finance, and consumer finance to drive growth, improve customer experience, and stand out in a competitive market.
Gen X overtake Millennials in sports and fitness product finance spending
The average Retail Finance order for UK sports and fitness products reached £1502 in 2024, up 111% from £709 in 2023. Read the full report.
Why Zopa Bank is the Retail Finance partner you need right now
Traditional lending options can be restrictive, and many lenders are facing internal challenges. At Zopa Bank Retail Finance, we’re in a strong position to offer stable, long-term support.
