Four retail and consumer financing trends to watch in 2025

Technology, demographics, and consumer preferences are changing how people shop and pay. It's never been more important to stay a step ahead of the retail and consumer financing trends impacting the market and your business.

What's next in 2025? Here are four trends to watch this year – and steps you can take now.

1. The rise of social commerce

Social commerce is when businesses promote and sell products and services directly through social media. With social commerce, the entire shopping experience, from browsing to checkout, takes place right on social media. Businesses of all sizes are using shoppable posts, live-stream events, user-generated content, and more traditional social media to promote and sell.

58% of shoppers have purchased a product after seeing it on social media¹.

Using social platforms to showcase products and introduce available financing options allows customers to review options at their own pace and helps reduce perceived barriers. By leveraging social media, you can expand your reach and create a more personalized shopping experience for your existing customers. This works well to drive traffic to your business, whether or not you have an e-commerce presence. 

2. The AI advantage

From inventory management to customer service, artificial intelligence (AI) and artificial general intelligence (AGI) are revolutionizing retail, with 40% of retailers already implementing AI for selected options and departments.² Among many uses, AI can help predict product demand, plan delivery routes, adapt pricing strategies, and forecast inventory needs to help minimize overstocks and stockouts.

AI-driven chatbots and virtual assistants can enhance customer service, providing immediate responses, personalized recommendations, and answers to questions about your business, including the availability of in-store financing. This not only improves customer satisfaction but also frees up valuable time for your team to focus on more strategic tasks.

3. Generational shifts

Gen Z makes up more than 20% of the U.S. population,³ and their influence is growing. Born into a digital era, Gen Z's consumer habits reflect a blend of technology, sustainability, and value-driven purchasing decisions. They are more likely to use social media as their primary source of product discovery, and heavily rely on online reviews and peer recommendations. And due to their comfort with mobile technology as digital natives, Gen Z may be more likely to feel comfortable making larger purchases online, compared to older generations.  

They value convenience, speed, and personalization, expecting seamless digital-first experiences. This extends to payment options, including mobile payment solutions, apps, and easy financing options. Connect with this demographic by offering financing options that resonate with their values, financial situation, and shopping preferences.

4. The e-commerce evolution

E-commerce is projected to account for 21% of total global retail sales.⁴ Bridge the gap between online and offline shopping experiences with an integrated multichannel experience, including curbside pickup, consistent branding, and excellent customer service across all channels.

Online and in-store, make paying and financing just as seamless to enhance the customer experience and close more sales. Offering multiple pay-over-time options, including options for those who might not qualify for traditional financing, can help you reach a broader customer base.

Positioned for success

The retail industry is in a state of constant evolution, driven by technological advancements, changing consumer preferences, and demographic shifts. But the foundation of retail – customer service, value, and quality products – remains. By staying ahead of retail trends and strategically implementing consumer financing options, you can position your business for sustained success in 2025 and beyond.

About Snap Finance

Snap Finance harnesses the power of data to empower consumers of all credit types to get what they need. Launched in 2012, Snap’s technology brings together more than a decade of data, machine learning, and nontraditional risk variables to create a proprietary decisioning platform that looks at each customer through a more holistic, human lens. Snap’s flexible lease-to-own and loan solutions are changing the face and pace of consumer retail finance.

For more information, visit snapfinance.com.

The advertised service is a lease-to-own agreement provided by Snap RTO LLC. Lease-to-own financing is not available to residents of Minnesota, New Jersey, and Wisconsin.

¹“Share of Shoppers That Purchased After Seeing It on Social Media.” Statista, 2024.

²“Share of retailers using AI, MV, and CV in 2023.” Statista, 2024.

³“25+ New Generation Z Statistics (2024).” Exploding Topics, June 28, 2024.

⁴“43 eCommerce Statistics in 2024.” SellersCommerce, September 10, 2024.

Using social platforms to showcase products and introduce available financing options allows customers to review options at their own pace and helps reduce perceived barriers. By leveraging social media, you can expand your reach and create a more personalized shopping experience for your existing customers. This works well to drive traffic to your business, whether or not you have an e-commerce presence.