Divido (Credit image/Pixabay/JESHOOTS-com)Checkout finance platform Divido has launched ‘Finance Matcher‘, a new tool to support UK consumers find checkout finance repayment plans they can afford. The new tool supports merchants to boost sales without compromising on responsible lending standards.

After a soft credit search by the lender, Finance Matcher presents finance options based on consumer affordability. This allows Novuna-enabled merchants to offer adjusted finance payment plans and increase acceptance rates. For example, shoppers get a second chance to adjust the deposit total or extend repayment terms to reduce monthly repayment amounts.

This responsible approach means consumers can complete purchases without overstretching their monthly budget. Furthermore, consumers using the soft search for the first time have an improved experience. This is done by easily seeing if they can save money on interest payments by repaying faster. They may still be accepted for finance.

Divido estimates merchants can lose up to 2% of retail finance sales because consumers unknowingly set monthly repayments too high. The requests get declined by the lender. For a merchant selling £20 million through retail finance, this can mean £400,000 in lost sales every year.

(credit image/LinkedIn/Todd Latham)Todd Latham, CEO of Divido suggests, “When you get all the way to the checkout. Then get turned down for finance, you are going to feel several emotions and none of them is positive. We saw this problem impacting basket abandonment and customer experience. So decided to develop a frictionless finance solution for the moments that matter. With our partners Novuna, we launched Finance Matcher, which gives customers a better chance at being accepted for finance. It should boosts merchant’s sales at a time when budgets are being squeezed.

“Today’s shoppers are more savvy. Many now actively choosing to shop with merchants that offer them a variety of payment options. Finance Matcher means happy customers, and less money left on the table,“Latham added.

Providing support during the cost-of-living crisis

Today’s challenging economic climate means more consumers are turning to alternative financing options to access necessary funds for the essentials and sometimes unexpected costs. This year alone, 36% of consumers have used BNPL more than once because of rising inflation and cost of living. Resolution Foundation says disposable income is set to fall by 4% by April 2024. As a result, alternative financing options will become essential.

Divido research earlier this year found 58.3% of consumers see checkout finance as a tool for helping them manage finances. 50.4% of consumers would be more likely to complete a purchase if they knew checkout finance was a payment option. 54.2% would consider spending more if this was an option. The research highlighted the opportunity for merchants to maintain and, in some sectors, boost sales. They can also tap into a new customer base and retain customer loyalty.

Retailers are aware that consumers have shifted their financing habits to keep pace with the rising cost of living. In fact, last year, 76% of large retailers in the UK had implemented at least one form of checkout finance. Now, they need to make retail finance programmes work harder for them. To prevent bad customer credit experiences and potential sales losses.

Enterprise Times: What this means for business.

Finance plays a crucial role in today’s customer buying experience. As a result of economic uncertainty and the need for consumers to tighten their belts, enterprises must provide consumers with smart and bespoke credit offerings. Retailers must provide the right finance option for each individual customer. Divido research undertaken earlier this year confirms this trend. It confirmed that consumers see checkout finance as a tool for helping them manage finances. The availability of these finance facilities is likely to increase consumer loyalty and nurture stronger relationships with retailers.


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