Join the consumer finance revolution

Consumer finance has never been more popular. Office of National Statistics show that household credit, like credit card debt and loan plans, rose 11% to £119bn in the two years to March 2019. And experts predict that it’s only going to get bigger.

“We expect the market for consumer finance as a whole to continue to grow across Europe as consumption expands,” said global accountancy giant Deloitte in its ‘Future of Credit’ report in 2019.

This level of household debt would have been difficult to fathom even a few decades ago, but changing social perceptions and, in recent years, the boom in e-commerce have transformed the consumer finance landscape.

It didn’t used to be this way. For older generations who grew up in the austere years of the 1950s and early 1960s, there was a certain stigma to consumer credit and the industry itself was tiny. By the mid-60s, though, a booming economy and broader social changes meant that people – and society was a whole – were beginning to embrace debt.

A flurry of innovations in household appliances like washing machines, fridges, cookers and, of course, televisions, unleashed a new wave of consumer demand. At the same time, a revolution in the consumer finance industry itself gave retailers innovative new finance products to tap into this growth. Any stigma once associated with debt was replaced with pride in being able to afford the latest products for the home.

Retailers began to offer new lending solutions, such as hire purchase agreements, enabling customers to pay for the latest household tech in convenient monthly payments.

In the 1990s, the introduction of sophisticated credit scoring systems and instant approvals gave retailers even more finance tools to woo consumers, making it even easier for shoppers to access credit, and more socially acceptable. Now, buying something on credit – from a pair of shoes to a new car – is just a normal part of the retail experience. In fact, not only is it ‘normal’, consumers increasingly expect it.

Credit has always allowed people to buy things that they otherwise wouldn’t be able to own. This doesn’t necessarily mean that they can’t afford it, just that they don’t want to incur the opportunity cost of saving for so long.

Today, credit isn’t just about accessing a better lifestyle. For many people, it’s a tool to make their lives easier and more convenient, while at the same time making their money go further, even on relatively low-value items like clothes or shoes.

The only potential downside is that most credit solutions, like credit cards, store cards or POS finance, charge interest on the money you borrow, which means you end up paying more than if you’d bought it outright.

That’s where DivideBuy’s interest-free credit solution is different – there is no interest.

DivideBuy enables retailers to provide instant consumer credit on a huge range of products. Shoppers can then split the cost of their product over a period of between 2 and 12 months, without paying any interest on the transaction. So the price they pay is exactly the same as if they’d paid outright.

It gives consumers more control over how they pay for goods and gives retailers a powerful USP for attracting more buyers.

No wonder that, according to a recent report from Research & Markets, the consumer credit market is expected to grow by around 5% a year until 2023, to reach £372.4 billion. A sure sign that any stigma once attached to credit has long been consigned to the history books.

To find out how DivideBuy can help your business increase sales and basket values, find out more today.

Get Started

Choose your date and time and we will contact you.

Recent News
How to boost your online sales with POS credit
The eCommerce landscape is booming. Reports show that at the height of the Covid-19 pandemic, 10 years’ growth in online sales took place in just 90 days. At a time when your customers are increasingly shopping online, eCommerce marketing has never mattered more – because as activity grows, so too does competition.   Broadly speaking, […]
16th February 2021
Switching made easy: Your most frequently asked questions
Do you want to switch POS finance providers, but you’re not sure about the process involved? Good news – switching credit providers is really very simple! In fact, at DivideBuy we do most of the work for you.   2020 brought with it a massive uptake in online shopping channels and so retailers are having […]
26th January 2021
Employee spotlight: The first point of contact for any DivideBuy partner, Retail Account Manager Abbie Blacklock
For many of our retail partners reading this, today’s spotlight really needs no introduction – our wonderful Retail Account Manager Abbie Blacklock. Abbie has been a crucial part in the journey for our retail partners, helping them out in anyway she can. Whether it’s answering enquiries, helping with training or assisting with setting up the […]
21st December 2020

Subscribe & Follow

Retailer
Newsletter

Sign up to receive news, hints and tips and helpful articles for your business.

Categories

Our use of cookies

We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. We won't set optional cookies unless you enable them. Using this site will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookies page


Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.


Analytics cookies

We'd like to set Google Analytics cookies to help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our Cookies page .