|Nathan Woodley

The beginner's guide to checkout finance

The beginner's guide to checkout finance

in short

How is checkout finance shaping consumer spending habits in Europe?

Earlier this year, we asked nearly 2,000 British consumers about their sentiment towards checkout finance


We found that British consumers have an overwhelmingly positive view, particularly amongst those who have used it before. 95% of consumers who have used checkout finance in the past, for example, were open to using it again. We learned that younger consumers were more likely to use it, high earners finance purchases of all sizes, and retirees are the least likely to use it. We also found that it’s second only to credit cards in terms of sentiment towards consumer finance.


With this information, we unearthed opportunities for merchants, lenders and retail finance providers to take advantage of. The sectors to focus on, the demographics to target, and the detractors to convince. 


The European survey

In this white paper, we take things up a level. We explore the European market and offer insights into its four biggest economies – France, Spain, Italy and Germany.


We find out how 4,000 consumers (1,000 in each country) really feel about checkout finance, and compare their results to our UK research.


Our reasoning is simple: to support organisations looking to expand their finance offering into Europe’s major markets. 


As with our UK research, consumers were surveyed in a backdrop of high prices, energy crises and war in Europe. EU inflation for the month prior to the research (April 2023) was 8.3%; Italy reported 8.1%, and Germany 8%. France was lower with a rise of 6.7%. Spain meanwhile had the second lowest inflation rates in Europe at 3.1% (marginally behind Luxembourg at 2.9%). As consumers turn to credit to support their lifestyles when their incomes are squeezed, these figures are important. 


The question is, how much are people spending with checkout finance across Europe, and what are they buying? In which countries is checkout finance a useful budgeting tool? Is it beneficial to consumer’s lifestyles? 


How do consumers in Spain feel about checkout finance? Would Germans rather use a credit card or interest-free credit? Would European consumers use checkout finance again? How does this compare to the UK?


The answers, which will help to inform merchants looking to expand their finance overseas, are found within.


Download our latest whitepaper to find out more.

The beginner’s guide to checkout finance

The checkout experience is changing. Your customers demand flexible, affordable, easy access to credit at the point of purchase. They want to adjust their payment plans to match their budget. They don’t want to pay anything for it. And they want it in a few clicks.


You, as a merchant, need to provide it for them or they’ll go elsewhere. Retail finance is no longer a nice-to-have. It’s a must-have.


But navigating the retail finance world can be challenging. There are over 150 providers globally, each offering a variation of interest-free credit. Buy Now, Pay Later (BNPL) is a popular product, but you may be wondering how Short-term Interest-free Credit (STIFC) fits in. What about interest-bearing credit and Pay in 30? How do these compare to credit cards and other loans? And what about regulation?

This guide

In the ‘Beginner’s Guide to Retail Finance’, we explain everything you need to know about retail finance. We’re here to help retail heads of eCommerce, finance, strategy and marketing understand your BNPLs from your STIFCs. You’ll learn the nuances of the industry so you can decide which provider is right for you, so you can get started on your retail finance journey.


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