Maintaining a cohesive brand identity is essential for crafting a business’s sales process. Firms need to develop trust and familiarity with their consumers by offering them a streamlined, frictionless buying experience. Financing and Buy Now, Pay Later (BNPL) offers are becoming more critical than ever in increasing the buying power of consumers, and Skeps is ready to offer its many benefits today.
Bringing in a third-party financing partner doesn’t have to cause consumers to worry about what a lender can provide in-house. White label financing allows lenders to offer attractive new financial products while maintaining a cohesive brand throughout their service lineup.
White label financing allows lenders to contract out for a third-party finance product, but their brand name is intact. As a result, the customer-facing lending process and offer advertisements will come straight from the lender, leading to a clean, efficient one-site payment process that consumers prefer. This characteristic means that lenders and vendors utilize Skeps’ expertise while gaining consumer trust for themselves.
Keeping consumers on one website with one cohesive brand identity reduces cart abandonment rates. It also allows lenders to expand their financing capabilities without putting it all together themselves, all while helping merchants demonstrate their value with flexible payment options.
Throughout the COVID-19 pandemic, consumers have seen significant fluctuations in buying power. Point-of-sale financing has come in to save the day for many who need to make necessary purchases or pay for vital services before they have the cash-in-hand. Over a year later, consumers have come to expect this level of flexibility, and vendors and lenders that provide it see more success.
As a result, Skeps’ third-party financing platform has many benefits for lenders and merchants. There is a brand-new product for lenders that they can now offer from their brand without any back-office hassles. For merchants, it adds a lot of convenience for the consumer, which improves revenues.
Skeps understands that the two most important figures for lenders are conversions and ticket size. Together, they are the supreme measure of success for any business, and more higher-paying customers allow lenders to increase profits and invest more readily in growth opportunities.
Estimates show a projected 20-30% increase in conversion rates when leveraging third-party BNPL platforms, and they project an even larger 30-50% increase in average ticket size. Premium products tend to carry better margins than their economic counterparts, so this ticket growth is even more valuable to most merchants than the volume increase that comes with it. This advantage means that they will more readily work with lenders that offer BNPL.
Skeps is in the business of growth, and we designed our white-label platform to be a catalyst for it and a flexible tool that grows with our clients.
Most merchants will choose not to handle financing in-house because it is costly. Many different subject matter experts are required to create an effective financing software tool that can even compete with others already on the market. These will lead those merchants to seek out lenders who can offer these tools for them. Here are just a few of the labor expenditures that come with an online BNPL platform:
Each of these processes typically takes paid staff and expertise to perform correctly, and this can be a lot for most small businesses to handle. Even larger enterprises generally are better served in investing in the products or services they offer than by setting up financing systems. This factor is why third-party financing is the standard in most industries and why Skeps is prepared to handle each of these functions so that businesses can stick to doing what they do best.
By contracting with an expert in lending, merchants don’t have to worry about anticipating changes in market demands concerning what financing offers they should provide. Their third-party partner is ideally a firm with long-standing experience in the finance industry. It will have the ability to adapt to changes and problems much quicker than a retailer would, and we at Skeps offer a plethora of experience in this regard.
Adapting to the market quickly can avoid revenue-decreasing issues and open up revenue-generating opportunities. For example, zero-interest online BNPL offerings are a relatively new development, and retailers and lenders that offered them first were able to reach an untapped market at the time. Developments like this are best left in the hands of firms in the lending business, allowing merchants to focus on their products and services.
Skeps’ white label platform in itself is the perfect example of innovation in the face of a changing market, leveraging blockchain technology to create a faster, more secure, and more accessible software product that connects consumers and merchants to lenders better than any other.
Since third-party white label financing providers already have their software developed and ready to integrate, lenders that contract with Skeps can immediately implement their new offers. This characteristic contrasts with a long, in-house development process ripe with soft launches and, inevitably, failures. As mentioned in the previous advantage, moves that take less time often generate more revenue.