Whether you’re a consumer or a merchant, we’ve all gotten used to seeing at least one retail finance provider’s logo amongst payment options. And if there’s no finance options, many of us are tempted to shop elsewhere.
Despite finance options now being commonplace, customers are still facing challenges when applying for retail finance options. Between April 2022 and April 2023, 19% of UK adults had a credit application turned down.
For merchants, this represents a significant number of lost sales opportunities. In many cases, it also deprives those customers of the chance to complete their purchase – meaning nobody wins.
Customers who are declined for traditional financing often abandon their shopping carts, leading to a frustrating experience for them and a lost sale for you, the merchant. This is where flexible lending solutions like Zopa Bank’s ‘Alternative Offer to Lend’ feature can transform the checkout process.
What is Zopa’s ‘Alternative Offer to Lend’ feature?
Our unique ‘Alternative Offer to Lend’ solution steps in when a customer’s original finance application is declined – all in the same finance journey, without them dropping out.
Using the details they’ve entered, we check their profile against our other finance options available on that product. For example, they may have wanted to purchase a £1000 item, spread across 6 months at 0% interest, and were declined. However, they could still be eligible to complete the same purchase spread across 12 interest free instalments instead, resulting in smaller instalments which would be appropriate for their circumstances.
If the customer accepts the alternative offer, they can carry on with their finance journey as normal, knowing they are likely to be approved.
These tailored alternatives significantly improve the chances of the customer being approved for credit, helping them complete their purchase – and boosting revenue for you.
How can this feature help my business?
Being declined for finance is never a positive experience. If a customer associates a negative interaction with your brand, they may think twice about returning.
Merchants using our ‘Alternative Offer to Lend’ feature experience an impressive uplift conversion rate of 38.52%. But this isn’t the only upside to this tool. By giving customers more flexible loan options, you demonstrate your commitment to responsible lending – whilst still helping them get what they want.
Providing flexible and alternative finance options is a win-win for both customers and merchants . By partnering with Zopa, you can ensure higher conversion rates, help customers responsibly complete their desired purchases, and ultimately drive long-term growth.
Find out more by getting in touch with us today.