"With holiday shopping season upon us, we're seeing more retailers offer flexible, pay-over-time financing options and promotional 0% tools to drive sales and make gifting more affordable for customers during a financially stressful time of year. Among the merchants we work with at Bread, we've seen that financing boosts average-order-value by an average of 60%," said Kate Levin, VP of Merchant Success, Bread. "As customers continue to look for online pay-over-time options, we can expect to see savvy retailers taking advantage of these trends to both improve holiday performance and meet the expectations of the modern holiday shopper."
Kate's first tip: go omnichannel
"Consumers are showing that they are willing to not only shop online for big-ticket items, but also use financing to make those purchases, particularly if they can pay for those items in small monthly payments over time. Meanwhile, brick and mortar remains a popular choice for the shoppers who still like to see or try their big-ticket items in store before buying them. Bread projects that retailers who can meet their customers where they are through omnichannel capabilities will come out ahead," said Levin.
Second, offer payment options
"Most Attractive Item this Holiday Season? Flexible financing!: 31% of shoppers pay over time half of the time or more for purchases over $500, and 44% of shoppers have financed a purchase," said Levin. "We can expect this holiday season to be filled with pay-later purchases."
Third, enhance the mobile experience
"Shoppers Increase Engagement on Mobile -- But Still Buy on Desktop: While consumers are increasingly interacting with retailers on mobile devices, when it comes to actually completing the purchase, the majority of shopping is still done on desktops for big-ticket items," said Levin.
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