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Shoppers And Retail Finance: Who? What? Why?

Retail finance has exploded in the past few years. Merchants are increasingly understanding the benefits it can have for the growth of their business, particularly in the current climate; boosting conversion rates, increasing average order values and improving customer satisfaction.

But do they know just how large an audience it attracts? And do they know how varied an audience of shoppers use retail finance, and how many would only purchase from a retailer if finance was offered? Let’s take a look at just a handful of different shoppers who use retail finance to help them purchase the items they really want.

1. The young professional

Imagine a young professional who has just begun their career. They may have some savings, but they are unlikely to have many being so early on in their career (and likely paying off a large student debt!). They also have a relatively small disposable income. However, they need to buy themselves a mattress – not a particularly inexpensive item. The opportunity to be able to pay for a Simba mattress through Divido’s monthly instalments at 0% interest is therefore the perfect option for them. No need for an expensive credit card, no need to add to their debt – and they can get the mattress they need straight away without any financial stress.

2. Mum or Dad

Take your typical Mum or Dad. Combined, they have a relatively large disposable income, as well as some savings accumulated over the years. However, they also have two kids and an accompanying string of outgoings that they need to manage carefully. So when it comes to paying for an unexpected service on their BMW, this could cause a financial burden. However, all this can be avoided now that BMW offers Divido for after-sales finance. Mum and Dad no longer need to pay a large and unexpected lump sum upfront, ensuring they avoid financial stress, stay in control of their finances – and reverse what could have been a negative customer experience with BMW.

3. The financially well-off

Many wrongly think that retail finance is only used by shoppers who can’t afford to pay for the purchase upfront. However, retail finance is also used by people who are financially very well-off with significant savings. Imagine they are wanting to buy an antique clock. They could pay for this upfront without placing any financial burden on themselves. However, the furniture and homewares retailer they wish to buy this clock from, After Noah, offers Divido. The option to pay in instalments at 0% interest rate is therefore a no-brainer. It costs them no more, the application process is exceptionally fast and they can keep in control of their many expenditures.

Kate Rogerson, Divido 

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