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If your eCommerce business is powered by Shopify, then you’re in luck. It’s arguably the most popular platform for online shopping – meaning you’ve got plenty of plugin options.
When it comes to retail finance, the more versatile your offering, the better it will convert. Shopify has a robust ecosystem of third-party apps and plugins that offer retail finance solutions for businesses. These apps can help you integrate financial services like point of sale finance, installment payments, and other financing options into your Shopify store.
Should I use retail finance options on my Shopify store?
In today’s competitive retail landscape, consumer finance options have become crucial to achieving growth and success. Our recent consumer insights research shows that 38% of UK customers expect to use POS finance more than usual in the next 12 months.
When choosing third-party finance apps for your Shopify store, keep in mind the following considerations:
Integration
Be sure your prospective finance provider can integrate quickly and seamlessly. Ask them if they have a native Shopify app, or whether you’ll need to integrate using an open API. Who handles the process, what costs are involved, and how quickly can you go live with your solution?
Ensure that the app you choose integrates seamlessly with your Shopify store and provides a user-friendly experience for both you and your customers.
Fees and Costs
If you’re looking at interest free finance, find out how much you’ll be charged per transaction. With interest bearing finance, these charges come in the form of APR – which the customer pays. Obviously, lower interest rates can attract more customers and make the credit option more appealing. However, this will impact your profit margins. Similarly, customers looking for interest bearing options will take APR into account – so be sure to check these facts.
Most finance providers also charge merchants a fixed monthly fee, plus commission on ever sale. These rates are less important than the results that they’re delivering. A provider might charge you lower rates, but if their solution is failing to convert or they’re only approving a small percentage of your customers, you’re not going to get the results you want.
Compliance
Make sure that your use of these services complies with relevant financial regulations and laws in your jurisdiction.
Depending on the finance solution you choose, it may be regulated or unregulated. Either way, there are strict guidelines around promoting retail finance to customers. The last thing you want is to unintentionally mislead customers with unclear advertising. Find a finance provider like DivideBuy who can offer you:
– Guidance around Financial Promotions
– Financial Promotions training for you and your team
– Digital and printable assets that comply with Financial Promotions guidance for advertising purposes
This will ensure you are safely and responsibly promoting your finance solution, protecting you, your team and your customers.
Customer Experience
Consider how offering retail finance options can enhance your overall customer shopping experience and potentially boost sales.
How quick and simple is it for customers to complete a finance application? How many fields is the form, and how fast can they get a lending decision? These are key aspects of keeping your customers in the sales pipeline.
Before integrating any third-party finance apps into your Shopify store, carefully research the available options, read user reviews, and assess which one aligns best with your business’s goals and customer preferences.
To find out more about DivideBuy’s Shopify integration options, get in touch with us today!
