From cart to close: Why flexible payments drive in-store and online growth

Flexible payments have become essential in retail – online and in-store alike. This article breaks down what “flexible payments” mean in 2025, how post-pandemic behavior shaped demand, and what strategies help merchants increase conversion, average order value, and loyalty. You’ll also find a 90-day action plan to bring inclusive payment options to life across channels.

Key takeaways:

• Shoppers now expect payment flexibility at every checkout stage – both online and in stores.

• Inclusive financing models expand reach and resilience, especially among credit-challenged customers.

• Merchants that integrate flexible payments see measurable gains in conversion, order size, and loyalty.

Retailers in 2025 face a new kind of shopper: one who wants control, convenience, and clarity before clicking “buy.” Tight budgets, economic uncertainty, and rising costs have pushed more consumers to explore pay-over-time options – not just for big purchases, but for everyday essentials too. For merchants, understanding how flexible payments work and why they matter can turn hesitation into conversion.

What “flexible payments” means in 2025

Common models at checkout

Today’s retail landscape offers a range of payment options from third-party financing providers designed to meet different budgets and credit situations. The three most common are:

• Installment loans: Fixed monthly payments, usually from banks or retail partners; ideal for mid- to high-ticket purchases.

• Lease-to-own: Can serve shoppers who may not qualify for traditional credit; allows customers to make payments over time to a third party until they've completed the terms of a lease agreement. At that time, customers obtain ownership. Snap Finance is a leading provider of lease-to-own financing.

• Split-pay / POS financing: “Buy now, pay later” options that divide purchases into smaller, interest-free payments over a short term, common for online checkouts.

Why inclusivity matters now

Offering access to multiple payment options does more than improve checkout – it broadens your total addressable market. A significant share of U.S. consumers now fall outside prime credit tiers, yet they still expect transparent financing options.

Inclusive financing programs often look beyond FICO® scores and consider factors like income consistency and payment behavior. This approach helps ensure that customers with limited or recovering credit can still participate, increasing both immediate sales and long-term loyalty.

For merchants, this inclusivity is ethical and strategic. It drives higher conversion rates, strengthens community reputation, and ensures you’re not leaving qualified shoppers behind. See Customer financing 101 for a deeper breakdown of primary vs. secondary financing.

Post-pandemic shopper behavior shifts retail can’t ignore

Budgeting and credit challenges changed the path to purchase

The pandemic permanently reshaped how consumers budget and buy. Shoppers are more cautious, more price-aware, and far less impulsive with big-ticket items. Many browse online, compare prices, and delay purchases unless they find payment options that fit their monthly budget.

Payment flexibility bridges that hesitation. A visible monthly cost at checkout – especially early in the product journey – reduces sticker shock and increases confidence.

For a deeper look at how credit challenges influence buying decisions, see How credit issues change the ways people shop and pay for appliances and 5 things that matter most to credit-challenged customers.

Omnichannel reality

Even as online browsing dominates early research, in-store experiences remain vital for conversion. Most shoppers still want to see, feel, or test big-ticket products like furniture or electronics before committing. That's why increasing awareness of and access to flexible payments, whether through signage, QR codes, or associate conversations, is key.

In-store financing visibility helps prevent shoppers from leaving to “think about it.” When customers know they can pay over time, they’re more likely to complete the purchase right then. Explore more in What is point-of-sale financing?

The business impact: Conversion, AOV, and loyalty

Conversion lift and lower abandonment

When customers see clear payment options – such as “as low as $45/month” – throughout their shopping journey, they’re less likely to abandon their cart. Awareness of financing helps demystify cost and turns browsers into buyers.

Making payment options visible early in the shopping process can help reduce cart abandonment and improve conversion rates. The key is placement: highlight it on product pages, in-store displays, and during checkout – not just after approval.

Bigger baskets, broader audiences

Flexible payments expand both who you serve and what they buy. Shoppers with diverse credit backgrounds can purchase higher-value items or complete full bundles (like a bed frame, mattress, and adjustable base) rather than piecemeal replacements.

Offering access to a range of inclusive options also builds resilience during economic slowdowns. Merchants with financing alternatives maintain steadier traffic and order values when traditional credit tightens. See Five recession-proof business tips to help you weather the storm for the full macro view.

Customer lifetime value

Payment transparency and convenience can turn a one-time transaction into an ongoing relationship. Customers who have a smooth first financing experience are more likely to return – especially if approval is fast, terms are clear, and the merchant feels trustworthy.

Merchants who integrate loyalty programs with flexible payment options can further boost repeat rates. Offering returning customers pre-approval or early visibility into payment terms can significantly improve repeat-purchase rates.

Implementation playbook (in-store and online)

In-store

• Train associates: Encourage them to mention payment options naturally, not as a hard sell. Scripts like “If you’d like, we have several pay-over-time choices – some don’t require perfect credit,” open the door without pressure.

• Use visual cues: Countertop displays, price tags, and QR codes should highlight “pay over time available.” Consistency builds trust and helps customers self-identify interest.

• Provide easy FAQs: Signage from the financing provider explaining terms and benefits can reduce staff burden and improve confidence at checkout.

E-commerce

• Product detail page (PDP) messaging: Display estimated monthly payments next to prices.

• Pre-approval widgets: Let shoppers see if they qualify without affecting credit.

• Checkout optimization: Make payment options visible before the final step; hiding them can cause drop-off.

• Mobile optimization: Since most shoppers start at the financing application process, make sure it’s fast and responsive on phones and tablets.

Measure what matters

Once you’ve partnered with a financing provider, track:

• Approval rate: The percentage of applications approved.

• Attach rate: The share of transactions using financing.

• Financed AOV: How much financed orders outperform non-financed ones.

• Repeat rate: How often financing customers return for additional purchases.

• Repayment health: Monitor on-time performance to gauge portfolio strength.

Real-world examples by category

Furniture and mattresses

Common objections: “It’s too expensive right now” or “I’ll wait for a sale.”
 Best payment fit: Installment loans and lease-to-own financing.
 Tips:

• Promote pay-over-time pricing on in-store tags.

• Encourage staff to mention comfort trials or warranty upgrades with financing.

• Offer same-day decisioning to prevent drop-off.

Wheel and tire / automotive accessories

Common objections: “I need it today, but I can’t pay all at once.”
Best payment fit: Lease-to-own and POS financing.
Tips:

• Display signage and QR codes on service desks and throughout the store.

• Pair payment options with messaging (“Drive today, pay later”).

• Educate techs to mention programs during consultations.

Appliances and electronics

Common objections: “I’ll compare online first” or “I’ll wait until my tax refund.”
Best payment fit: Split-pay and installment loans.
Tips:

• Use in-store signage showing as-low-as payments per category.

• Add early-journey payment badges on your e-commerce homepage.

• Combine with free delivery or setup to sweeten conversion.

90-day action plan for merchants

Weeks 1-2: Current-state audit

Evaluate the financing currently available at your store. Review financing signage, approval rates, and where payment options appear across your online and physical stores. Identify friction points – missing checkout prompts, slow application flows, or outdated materials.

Weeks 3-6: Pilot improvements

Work with your financing provider to test small changes before a full rollout. Add early-journey messaging (“Pay over time available”), retrain associates, or A/B test product-page language that emphasizes monthly pricing. Gather data and customer feedback.

Weeks 7-12: Expand across locations and refine KPIs

Once you’ve confirmed lift in conversion or average order value, deploy new payment tools and training across multiple locations. Adjust performance tracking dashboards to monitor key KPIs over time.

A structured rollout helps you avoid confusion and ensures both teams and customers understand their options clearly.

FAQs

Do flexible payment options hurt margins?
Not when structured strategically. The increase in conversion and AOV typically offsets any financing costs, especially when programs are tailored by category. Snap Finance offers pay-over-time solutions at no cost to merchants.

Will lease-to-own attract only subprime shoppers?
No. Many customers use lease-to-own to preserve available credit lines or avoid traditional debt – even those with better credit profiles.

How should I present options without confusing customers?
Keep it simple: lead with the monthly payment example and provide a clear comparison if you offer access to multiple financing options.

How do I track financing’s true ROI?
Monitor attach rate, AOV, repeat rate, and repayment performance. Together, these show whether financing drives sustainable growth. Snap Finance provides performance metrics and reports at no charge to merchant partners.

Where retail goes from here

Shoppers now expect payment choice – not just price drops – as part of the buying experience. For merchants, offering flexible payments across both digital and physical channels is no longer a “nice to have”; it’s a competitive necessity.

Want to learn more? Check out Four retail and consumer financing trends to watch in 2025

Explore inclusive payment solutions that meet shoppers where they are and turn every “maybe later” into a confident yes. Visit Snap Finance to learn more.

Snap-branded product offering includes retail installment contracts, bank installment loans, and lease-to-own financing. For more detailed information, please visit snapfinance.com/legal/products.