Point-of-sale financing could play a bigger role in retail

Financing has long been a part of retail and is evolving with new technologies and changing consumer desires.

Indeed, the financing moves to the point of sale, and MasterCard provides a good example of this trend.

After all, reluctance and deeper thought can lead to fewer products in the baskets, abandoned carts, and lost sales in the world of payments and commerce. The trick is to get that consumer past the finish line (or through the gate, or over the fence, whichever cliché preferred), and not only make the sale, but also win. the loyalty of that buyer – and maybe even to do so throw a few other things in those baskets along the way.

Mastercard Move

Point-of-sale (POS) financing can help achieve these goals, according to its promoters, including Blake Rosenthal, executive vice president of acceptance solutions at MasterCard. Last year, the payment card network acquired POS finance provider Vyze for an undisclosed sum.

Overall, point-of-sale financing represents a “significant and growing opportunity, driven by giving consumers more choice” when it comes to payment, she told Webster – in fact, according to one. Accenture figure cited by Mastercard, the industry represents a $ 1.8 trillion opportunity. “It is a big and growing [area], but it’s not very crowded now. There is a lot of white space, ”Rosenthal noted.

Securing a major presence in the point-of-sale finance space as early as possible was not the only factor that motivated Mastercard. to buy Vyze. The company, Rosenthal explained, “complements the way we play in the ecosystem.” Vyze is not a lender, but rather a digital commerce and payments matchmaker, bringing lenders and merchants together, and enabling them to offer installment loans to consumers who purchase the products of these merchants. “If you’re a trader today, you can have relationships with two or three lenders,” she says. “With Vyze, you connect with all the lenders on the platform.”

Travel options

Travel is another area for this type of retail and payments innovation.

Think about it: From a family vacation to Disney World to a best friend’s destination wedding to the retired couple’s unique getaway, there are all kinds of reasons consumers want or need to travel. And while the motivations for taking the road may vary, there is only one economic reality for most of these trips: it usually involves significant financial expenses.

Whether they’re going on the trip of a lifetime or faced with an emergency trip, the shock of the trip price sticker can leave consumers scrambling to keep costs down by flying in the middle of the night. , or by packing all their clothes in hand luggage to avoid baggage charges. Often times this means that the trip cannot happen at all.

In these situations, UATP CEO Ralph Kaiser noted in a conversation with PYMNTS and Uprising CEO Brian Barth, it is becoming particularly important to offer a variety of payment methods at checkout, including alternative methods like installment financing.

“There is a count among the players that they have to do this, and they really want to do it,” he said. “But a lot of these airlines and hotels are working with legacy systems that look a lot like mainframes – so it will take innovation and the ability to partner with tech players.”

Actors like Uplift – who, in Kaiser’s words, “have been very successful in meeting a critical need for funding from travel payments. “

And beyond meeting a need, Barth noted, the best result is when the airline can generate revenue by offering a manageable payment schedule that spreads the cost of travel over time, allowing customers to travel. more and generate additional revenue for the airline.

As payments progress, expect more financing options for retail consumers.

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NEW PYMNTS DATA: CRYPTOCURRENCY PAYMENTS STUDY – MAY 2021

About the study: U.S. consumers see cryptocurrency as more than just a store of value: 46 million people plan to use it to make payments for everything from financial services to groceries. In the Cryptocurrency Payments report, PYMNTS surveys 8,008 cryptocurrency users and non-users in the United States to examine how they plan to use crypto to make purchases, the crypto they plan to to use – and how merchant acceptance can influence merchant choice and consumer spending.






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