Clicks to Commerce: The Future of POS Lending

Abstract: The 2024 Canadian Lenders Summit Panel, “Clicks to Commerce” panel convened industry leaders to discuss how point-of-sale (POS) lending is transforming consumer financing. With advancements in digital payments and regulatory shifts, the session provided insights into innovation, personalization, and responsible lending. 👉 Check out the full video here.   👀  

What innovations in POS lending do you think will become popular in the near future?

Jeff: Customers are looking for alternatives to traditional payment methods. Our focus is on removing friction in onboarding and making the checkout process faster, seamless, and simpler.

Jessica: With Flexiti, we leverage our network of 8,000 merchant partners to personalize experiences. For instance, a customer buying a house might see tailored financing options to furnish it.”

How do you personalize financing for customers you may not know until they’re at checkout?

Jessica: We gather data from our merchant network, such as purchasing patterns, to offer tailored options that align with customer needs.

The Rise of ‘Buy Now, Pay Later’ (BNPL)

Casper: Financeit acts as a sales enablement platform for merchants, especially in home improvement. In the U.S., where the market is more mature, financing is a standard option at checkout, and we’re bringing that model to Canada.

Wayne: BNPL is becoming an expected credit card alternative. At Affirm, we prioritize transparency by offering no late fees or compounding interest—aligning entirely with the customer.

Given emerging regulations around lending practices, what role does POS financing play in consumer debt management?

Wayne: Our product is designed to avoid revolving credit and deferred interest. This means we’re aligned with the customer, ensuring they don’t overburden themselves financially.

Casper: In home improvement, our financing is largely merchant-paid. This creates a win-win: customers receive low or 0% financing, and merchants see higher close rates and transaction sizes.

AI and Open Banking’s Role

Jessica: AI offers tremendous potential for personalization and fraud detection. Open banking could further simplify payments while enhancing security and trust.

Casper: We’re already using AI to improve customer service and operational efficiency. For example, AI resolves queries faster and provides precise answers to agents before they interact with customers.

What are your final thoughts on the future of POS lending?

Casper: The new economy is rewarding companies that understand their unit economics. Canadian businesses are adapting quickly, and I’m optimistic about 2025.

Jessica: It’s about empowering customers with transparency and choice. As POS lending grows, it will continue to complement traditional credit options.

Check out the full video here.   👀 

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