This year, consumers are increasingly favoring merchants that offer flexible payment options, particularly those that allow for pay-over-time solutions. A recent report by PYMNTS Intelligence, in collaboration with Splitit, reveals that 76% of consumers prefer using these options before making a purchase, with 43% stating that the availability of their preferred financing option strongly influences their choice of retailer. However, the complexity of these options can lead to consumer confusion, which merchants must avoid to maintain customer loyalty. Splitit CEO Nandan Sheth emphasizes the importance of simplicity in payment solutions, suggesting that merchants should consider white-label solutions to enhance consumer lifetime value. Additionally, card-linked installments present a significant opportunity, allowing consumers to utilize existing credit without the hassle of new credit applications. By embedding financing solutions into the shopping experience, merchants can not only increase sales but also foster repeat purchases and long-term customer relationships.
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