In the world of commerce, payment methods are often seen merely as the final step in a purchase journey, a bridge from browsing to buying. While offering a diverse array of popular payment solutions, including pay-over-time options, is undeniably crucial for customer conversion, there's one method that transcends this traditional role.
Embedded lending is more than just a way to settle a transaction; it's a strategy that empowers merchants to give their customers the financial flexibility they desire from BNPL-type services, while simultaneously fostering deeper customer loyalty and elevating their brand's value.
Embedded lending is the process of offering loans or other credit products directly to consumers and businesses by integrating them into a non-financial user journey.
Fair and responsible financing is synonymous with banks. Their unmatched expertise in lending, combined with robust underwriting capabilities and solid balance sheets, sets them apart in the financial landscape.
By embedding financing solutions from these trusted banking institutions, merchants not only offer a flexible payment option, but also cement a bond of trust with their customers. A telling statistic from Accenture reveals that 40% of shoppers would opt for BNPL options if they were bank-affiliated.
Transparent and fair lending practices establish trust between the merchant and the customer. When customers feel confident that they are making well-informed financial decisions, they are more likely to return for future purchases.
When customer financing is white-labelled for the merchant, it ensures that customers remain immersed in the merchant's branded experience, free from diversions to external third-party sites or apps which risk exposure to competitor brands.
Embedded lending transcends traditional payment methods by bridging the gap between transactions and long-lasting customer loyalty.
Jifiti is a global fintech company that powers white-labeled embedded lending solutions for banks, lenders, and merchants worldwide. With Jifiti’s robust platform, merchants can easily embed any consumer and business financing programme at any point of sale, online, in-store, and via call center. Jifiti works with leading merchants and financial institutions, including IKEA, Sonae, Coppel, Mastercard, Citizens Bank, CaixaBank, Credit Agricole, and others worldwide.
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