Published by Jessica Weisman-Pitts
Posted on November 16, 2021
6 min readLast updated: January 28, 2026
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Point of sale finance is crucial for retail success, offering flexible payment options like interest free credit to boost sales and customer reach.
By James Bradley, Business Development Director at DivideBuy
Point of sale (POS) finance is one of the fastest-growing checkout options. Fact. With the payment method dominating a lot of the media this year, retailers can be forgiven for being unsure what they really do need to know, how it works and how it can really strengthen their business. Let’s break it down.
Whether it’s Black Friday, Cyber Monday, or Christmas, 2021’s peak sales events will be notably different from previous years. Not only are they the first hotly anticipated post-pandemic shopping extravaganzas, but they’re also coming amid unprecedented supply chain issues which are driving up demand.
Retailers everywhere can expect record numbers of bargain hunters eager to get their hands on heavily discounted items. This is an exciting opportunity for retailers to welcome more customers by extending the choice of payment methods at the POS. And the fastest growing of them all is interest free credit (IFC). So, how do retailers make the most of it?
IFC is one of the most flexible and consumer-friendly payment options around because it helps to spread out the cost of larger-value items, with no hidden fees. IFC has taken off to such a degree that global sales volumes reached $93 billion in 2020, and could hit $181 billion by 2022. Right now, it makes up a 1.6% of online retail sales but it’s growing fast. Why? Because it’s a cost-effective, transparent form of payment that gives consumers control over their budgets and repayment schedules.
At a time when retailers are focused on serving as many customers as possible, it makes business and economic sense to give shoppers a wider choice in how they pay at the checkout. And this is even more relevant during peak sales periods.
Installing new checkout tech doesn’t have to be complicated
One of the fears retailers have about implementing new payment solutions is that they won’t have the technical expertise to install it themselves. In fact, putting POS finance into the checkout isn’t difficult to do at all, trust me, we’ve done it some 500+ times. LendTech providers know that retailers can’t afford any disruptions or downtime in their operations – especially at this time of year – and have designed solutions that can be easily and quickly added alongside existing payment options in eCommerce platforms.
Most LendTech solutions can be installed using an API plugin. There are two ways to go about this – either the retailer can perform a self-installation, or they can call on the expertise of the LendTech provider to handle installation and integration into their existing eCommerce platform on their behalf.
While there’s no doubt that many retailers are tech-savvy enough to install POS solutions themselves, the provider, like us, can get everything set up and ensure all the necessary checks have been done before going live. DivideBuy is on hand to guide the merchant on how to use the solution and merchant portal to manage their account and orders. For smaller retailers, this can be invaluable – meaning they can spend their time serving their customers while everything is taken care of in the background. There’s a lot to be said for ongoing account management and reassurance, especially for retailers who are still perhaps a little unsure about this in-demand payment method.
By making more methods of payment available to customers, retailers can start to see the benefits of quick application processes and instant credit decisions for customers, which helps to boost average order values.
As I mentioned, DivideBuy has effortlessly onboarded over 500 retailers in the UK alone, and more are joining every week, attracted by the simplicity of the solution and its ability to extend the retailer’s reach to even more customers.
Regulation ensures lender competence and consumer protection
An added benefit for the retailer is that LendTech providers take care of the credit lending process, credit and affordability checks and approvals. LendTech providers are subject to FCA regulation – a rigorous process that governs their ability to offer underwriting, conduct affordability and fraud checks, and repayment management.
Once a customer is approved, the LendTech provider also takes on the risk, including all related legal compliance requirements. That means retailers will receive payment upon delivery of the goods to the customer.
Because the LendTech provider acts as the credit lender, they are responsible for credit checks and collecting customer payments. Retailers, freed from these responsibilities, can focus their efforts on giving customers the best experience and deepen loyalty.
When retailers make interest free credit available at the POS, they begin to reap several revenue-boosting advantages. By improving customer convenience, retailers attract new customers, have more opportunities to upsell, and extend customer lifetime value. This is pertinent in relation to higher-value items. Consumers would normally have to save up for long periods of time before being able to buy such items. But IFC makes them accessible to more consumers by spreading the cost over a few months. In DivideBuy’s case, we’re the only LendTech provider to give retailers the added flexibility of offering longer payment terms of up to 12-months, thereby extending their potential pool of customers.
Extending POS payment choice is common sense for retailers
The new generation of LendTech solutions are revolutionising the retail sector, and opening up new opportunities for increased revenues, more effective marketing strategies and deeper customer relationships, informed by the rich data these platforms can offer.
As retailers look for more ways to create more value for their customers, there is a sound business case for making interest free credit available at the POS. As the retail landscape continues to evolve to meet increasing consumer demand and expectations during busy peak periods, there’s clearly a market for POS financing.
For retailers seeking new customers, and to deepen loyalty with existing ones, POS finance is too good an opportunity to miss.
About DivideBuy:
Established in 2014, DivideBuy is a UK consumer retailer credit provider, offering interest free finance in a simpler, easier way for retailers and consumers. Our mission is to transform the point-of-sale finance industry through providing innovation and technology. We work in partnership to offer retail POS credit solutions to over 500 retailers and counting. Our ecommerce credit plugin integrates seamlessly with shopping cart functionalities such as Shopify, Magento, WooCommerce and Craft Commerce.
The article discusses the importance of point of sale finance in enhancing retail success by offering flexible payment options.
Retailers can install POS finance solutions using an API plugin, either by self-installation or with the help of LendTech providers.
Interest free credit allows consumers to spread out costs with no hidden fees, boosting customer satisfaction and order values.
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