Using online retail finance
Online retail finance is on the rise and according to recent news reports, it’s being used by retailers to encourage shoppers to order more frequently and spend more.
This new generation of finance provider is different from traditional forms of borrowing, typically passing charges onto retailers instead of consumers, meaning that borrowers don’t face any interest or fees.
A new generation of borrowing
Retail finance is also data-led. According to CNN Business, when making a lending decision, finance provider, Klarna, asks customers for minimal personal information before performing a soft credit check. It then uses machine learning and analytics to risk score the consumer in real-time.
The option to ‘buy now, pay later’ is given at check out along with the options to pay by a card or by PayPal and is available with just a few clicks. Repayment options usually include paying in 30 days or spreading payments out over a longer period in instalments.
While this is certainly convenient, it should be noted that with any type of borrowing, failing to make repayments on time can negatively affect your credit score.
Klarna
One of the most popular providers, Klarna, is used by one million people each day. A Swedish tech start-up, it is rapidly growing in popularity, claiming that it has 60 million customers worldwide with 26 million of them acquired in 2018 alone.
Where you can shop using Klarna
- Burtons
- Lenovo
- Dorothy Perkins
- Microsoft
- Miss Selfridge
- AX Paris
- com
- Top Shop
- Top Man
- Wallis
Duologi
Basingstoke based Duologi is another online retail finance provider that’s experiencing massive growth. Recent reports indicate that the young company plans to grow its portfolio to £1bn in five years. Like Klarna, it offers customers to pay in ways that suit them.
Where you can shop using Duologi
- Litchfield Motors
- Batribike
- The Cotswold Bed Company
- Middletons Mobility
- Virgin Pure
- Cherry Lane Garden Centres
- Bedrooms In Style
- Just Paint Ball
- Furniture Box
Deko
Another modern-day finance provider, London headquartered Deko offers credit decisions in under five seconds following a four-minute credit application. It focuses on using digital technology to make transactions seamless for retailers and consumers.
Where you can shop using Deko
- 4Gadgets
- Cornell Jewellers
- Stove Saver
- New Victoria Hospital
- Night Master
- Rotary revs
- The Fireplace Warehouse
- Think! Flooring
- Diamond Rocks
- Artfinder
V12 Retail Finance
Part of the Secure Trust Bank family, V12 Retail Finance is another UK firm, registered in Cardiff. It allows retailers to offer a suite of flexible payment options including interest-free payments, with interest up to 19.9% for large purchases, an interest-free five-month payment plan and buy now pay later.
Where you can shop using V12 Retail Finance
- Clifton Cameras
- Yamaha Music
- Wiggle Bikes
- Appliances Direct
- The Celtic Football Club
- Discount Diamond Store
- Halfords
- Cycle Republic
- Laptops Direct
- Tottenham Hotspur
PayPal Credit
PayPal Credit claims that it’s like a credit card without the plastic. It offers 0% interest for four months on all purchases of £99 or more, allowing shoppers to spread the cost of those larger purchases. It is soon going to offer a scheme for credit for smaller sums and will be available for PayPal Credit customers who are already verified and approved by the company with no additional applications.
Where you can shop using PayPal’s 3-month option
- Blacks
- Chain Reaction Cycles
- Dyson
- Millets
- Samsung
- Simply Games
- Ultimate Outdoors
- Goldsmiths
- eBay
- Box.co.uk