Elevating retail performance with 'point of sale' finance

In the competitive landscape of UK retail, businesses are continually seeking strategies to enhance customer satisfaction and drive revenue growth. Implementing sophisticated retail point of sale (POS) finance solutions has emerged as a key approach towards achieving those objectives.

The UK's retail sector is confronting significant challenges in 2025, including declining sales volumes and shifting consumer behaviours. In October 2024, retail sales volumes recorded by the Office for National Statistics decreased by 0.7%, following a modest 0.1% rise in September. This decline reflects broader economic uncertainties and changing consumer spending patterns.

High inflation has further strained the industry according to Mintel, leading consumers to prioritise essential purchases and reduce discretionary spending. This trend affects a wide range of retail segments, particularly those reliant on non-essential goods.

The rise of international e-commerce platforms has also intensified competition, challenging many UK retailers to adapt to rapidly evolving market landscapes.

In this context, adopting innovative retail finance solutions becomes even more vital. By offering tailored point of sale (POS) finance options, retailers can meet evolving consumer preferences, enhance customer experience and drive growth.

Collaborating with reputable providers, with a focus on award-winning customer satisfaction and customised solutions, has helped thousands of UK retailers navigate these challenges. For many clients, implementing tailored finance options has not only boosted sales and profitability but has also enhanced customer retention, providing a valuable competitive edge.

The role of retail point-of-sale finance

Retail finance enables customers to acquire products immediately, while spreading the cost over a set period with manageable instalments. This financial flexibility makes higher-priced items far more accessible, thereby encouraging purchases that might otherwise be deferred.

We also need to be mindful of the shift towards cashless transactions in the UK. It's no surprise that in recent years the UK has experienced a significant decline in the use of 'hard cash'. While cash transactions constituted only 12% of all payments in 2023, Jana Mackintosh (Managing Director for Payments at UK Finance) forecasted that will fall to just 6% by 2033. With more and more of us already leading largely cashless lives, this shift underscores the growing preference for digital payment methods amongst consumers.

Advantages of implementing retail finance

Implementing point of sale financing can significantly enhance sales volumes and average transaction values. Customers are more inclined to make larger purchases when provided with the flexibility to pay over time. After all, many of us are uncomfortable committing to a purchase with intimidating single upfront payments.

As a direct result, customers are more likely to add extra items to their order or opt for higher-end products, knowing that the payment can be broken down into smaller, more digestible amounts. So in addition to increasing AOVs, this can also help position you as a business that caters to those who prioritise quality over cost.

Moreover, flexible payment options play a crucial role in enhancing customer satisfaction and fostering loyalty. Research continues to find positive associations between customer satisfaction levels and loyalty behaviours, including future retention and positive word-of-mouth referrals to friends and family.

By offering convenient and accessible payment methods, retailers can cater to diverse financial situations, leading to improved customer experiences and encouraging repeat business.

In summary, integrating POS financing not only elevates sales performance but can also deeply strengthen customer relationships, positioning retailers for sustained future success.

Gaining a competitive edge with finance

In a saturated market, offering retail finance can distinguish you from your competitors. Retailers that provide flexible powerful solutions are better positioned to attract customers seeking affordability and convenience. Key features include:

Tailoring functionality
A ‘one size fits all’ approach rarely works. The best finance systems will allow your customers to build personalised finance packages, giving them full flexibility within responsible lending safeguards. Successful finance options will successfully meet the needs of many different customers all at once.

Soft search for affordability
Implementing a soft search for affordability enables customers to assess their eligibility for finance without affecting their credit score. This feature encourages more customers to consider financing, increasing the likelihood of completed sales.

Fast integration
Integrating new systems can be challenging. Choosing a finance solution that offers a fast integration minimises disruptions to operations, allowing retailers to provide finance options to customers promptly.

Ongoing support from a UK team
Access to ongoing support from a UK-based team ensures that any issues are resolved swiftly and effectively. Because local support teams understand market nuances and can provide tailored assistance and expertise, they enhance the overall experience for both retailers and customers.

Best practices for implementing POS finance

Staff training
Educate staff on the benefits and processes of offering finance to ensure they can effectively communicate options to customers, address queries, and promote the service confidently.

Clear communication
Provide transparent information about the various finance options we provide to you, including terms, interest rates, and repayment schedules. Clear communication builds trust and helps customers make informed decisions.

Monitoring and evaluation
Regularly assess the performance of finance as a separate channel. Gather customer feedback and analyse sales data to identify areas for improvement, ensuring that the solutions continue to meet business objectives and customer needs.

How to select the right finance partner

Choosing the best finance provider for you is obviously a critical decision, one that impacts both customer experience and business operations alike. Before you decide to offer your customers finance then, consider the following factors when selecting a partner:

Reputation and reliability
Partner with a provider known for reliability and excellent customer service. Novuna Consumer Finance is proud to be recognised as one of the UK market leaders in this area, collaborating with the customers of over 3,000 retailers across various sectors, we've been awarded the prestigious ‘Industry Leading’ status by the Contact Centre Management Association (CCMA). This is an industry-first, and testament to our 200+ strong contact centre team's focus. Serving over 1.3 million finance customers, we're dedicate to customer satisfaction.

Flexibility and customisation
Ensure that the finance solutions can be tailored to your business needs, we offer flexibility in terms and conditions to suit your operations and customer expectations. Our team of experts are well-versed in the challenges your sector is dealing with, they will be on hand to help you navigate through all the data we can provide. Our wide range of tailoring options are designed to allow your customers to create their perfect bespoke payment option.

Get in touch to ask any other questions

Embracing retail finance can improve profitability and improve customer satisfaction for a variety of retailers. However, it’s still important to thoroughly investigate whether offering finance is the right option for your business.

Our team have decades of experience in the retail finance industry, so can provide clarity on any other questions you may have.

Talk to us