Divido, the retail finance platform, has today announced the introduction of two new features to its checkout platform, Pay Later and Bank Transfer. With consumer awareness of payment methods continuing to grow, these new features are launched at a critical time when retailers need to provide customers with a range of payment options to secure the sale.
With traditional point of sale finance, the customer pays off the credit via monthly instalments, for a set period of time. With Divido’s Pay Later, the customer pay nothing for a set period (e.g. 3 or 12 months) and settles the full amount the final month instead.
This provides the customer with more choice with how they would like to manage their finances, as well as taking advantage of interest-free finance. While providing an attractive option for the customer, Pay Later is also cheaper for the retailer to offer than traditional point of sale finance. Meanwhile, to ensure retailers have the opportunity to increase conversion, the merchant can still advertise the effective incentive of 0% interest that is proven to help secure sales.
Divido’s Bank Transfer option provides the customer with the choice to pay in full upfront via bank transfer, rather than credit card. As the transfer is entirely electronic, the process is instant, so the money is immediately deposited into the merchant’s account. The customer needs to only select their bank and complete a short security process.
As well as being fast, this method is much cheaper for the retailer than the typical credit card purchase. This can be used in 25 countries, including those where there is a high proportion of consumers that choose bank transfer as their number one payment method.
“Point of sale finance has been around for 50 years but it hasn’t evolved much – we want to end that by expanding the flexibility we offer to our customers, listening to their feedback and adapting our technology accordingly”, comments Christer Holliman, CEO of Divido. “In light of this, we’re excited to announce the introduction of these features that will give end customers the flexibility to decide the finance option that’s right for them, and ensure they can get the item they want, when they want it.”