Unlike traditional cash registers, a POS system offers numerous advantages and benefits for your company.
A comprehensive Point of Sale (POS) system is undoubtedly on your to-do list if you’re still using an ECR and a credit card terminal in your organization. However, if you’ve been on the fence in the past, now is the perfect time to make the switch.
There are other advantages to utilizing a point of sale systems, more than only the cash register. It’s time to get rid of your old, bulky cash register in favor of these advantages.
If you prefer to pay for your item immediately, you can do so
Consumers can purchase goods and services more easily when businesses offer financing options at purchase. Point of sale finance includes open-loop and closed-loop credit cards and installment loans.
Consumers may acquire mid- to high-ticket items without relying on a bank’s support in the short term, thanks to user-friendly, low-cost point of sale financing. Loans at the point of sale are becoming increasingly common because consumers have unique relationships with credit in the current world.
Major purchases like furniture and car loans are frequently paid for using point-of-sale financing that has been around for a while. In recent years, funding point-of-sale has gained popularity due to technology improvements, making installment loan options instantly accessible online and outlining the loan’s repayment terms in detail before it is taken out. These improvements have made it much easier for retailers of all kinds.
Getting Credit at the Register Has Several Advantages
Customers and business owners, and lenders can help all gain from adopting the point of sale financing option because it is beneficial to all three parties involved in the firm.
Using a Point of Sale (POS) to boost sales
Sales can be boosted via consumer point of sale and sales financing. To make it easier for customers to benefit from items and services without paying beforehand, these purchase now, pay later agreements exist.
According to a study, more than 76% of retail buyers are willing to purchase if financing is provided at the point of sale. That’s why you’ll see it on the checkout pages of your online shopping basket.
On the other hand, buying online has the same security implications as purchasing offline. The buyers will not reject the transaction if they are given the choice of immediate financing with the opportunity to pay later.
Due to Increased Sales, Order Value Increases
When a customer buys something from your store, the order value is the average amount of money you make from that sale.
Customer purchasing power is increased by allowing them to choose higher-priced products if they can pay over a more extended period through the point of sale financing.
There are many ways to increase profitability without sacrificing margins, such as raising average order value. Suppose you provide a consumer with greater purchasing power. In that case, it’s only standard for them to want more and get the most out of one transaction, significantly if your firm’s point-of-sale restrictions limit him from making another purchase until the prior one is paid in full.
Reputation Management at the Point of Sale
Customers believe that companies which accept payment at the time of sale are more compassionate and understanding than those that do not. They interpret this as a recognition of the hardships faced by the average shopper. It may even induce people to put off unpleasant situations.
For a brand to flourish, it must be able to interact with customers on a more personal level. Since individuals are drawn to things and organizations with which they are familiar and connected, the bulk of the puzzle pieces will fall into place once you connect.
Increased Access to Customers Using a POS system
Point-of-sale financing enables businesses to reach a wider audience while also enhancing their brand’s image in the marketplace.
In addition, it may be a viable choice for those who are unable to obtain a personal loan because of their financial situation or lack time to complete an application. When you offer financing at the point of sale, you increase your customer base. When attracting customers, you may now reach out to folks who have limited funds but still want to make frequent purchases.
Restoration of the consumer’s purchasing power will go a long way in ensuring that the business will be repeated. Point-of-sale financing was a hit with customers, both online and off. It’s possible to apply for the loan right now without waiting in line at the bank or undergoing any lengthy procedures. Getting the go-ahead is quick and painless. Customers are also provided complete information about their monthly payment commitments, with no hidden fees or costs.
By working with a trusted point of sale finance partner, you can better understand your consumers’ needs. Your company’s long-term ties with the market will be easier to maintain due to this.
Your bottom line will benefit from POS solutions since they reduce costs while increasing productivity. There will be a quick return on investment (ROI) when switching from an ECR to the point of sale (POS) system.
About the author :
Aline Huseby is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.