London, UK – 22nd June 2023: Checkout finance platform Divido today launches ‘Finance Matcher’, a new tool to support UK consumers in finding checkout finance repayment plans that they can afford, supporting merchants to boost sales without compromising on responsible lending standards.
After a soft credit search by the lender, Finance Matcher presents finance options based on consumer affordability, allowing Novuna-enabled merchants to offer adjusted finance payment plans and increase acceptance rates. For example, shoppers get a second chance to adjust their deposit total or extend repayment terms to reduce their monthly repayment amounts. This responsible approach means consumers can complete purchases without overstretching their monthly budget. Further, consumers passing the soft search the first time have an improved experience by easily seeing if they can save money on interest payments by repaying faster, and still be accepted for finance.
Divido estimates that merchants can lose up to 2% of their retail finance sales because consumers unknowingly set monthly repayments too high, which get declined by the lender. For a merchant selling £20 million through retail finance, this can mean £400,000 in lost sales every year.
Todd Latham, CEO of Divido, comments:
“Today’s shoppers are more savvy, with many now actively choosing to shop with merchants that offer them a variety of payment options. Finance Matcher means happy customers, and less money left on the table.”
Providing support during the cost-of-living crisis
Today’s challenging economic climate means more consumers are turning to alternative financing options to access necessary funds for the essentials, and sometimes unexpected costs. This year alone, over 36% of consumers have used BNPL more than once because of rising inflation and cost of living. With disposable income set to fall by 4% by April 2024 according to the Resolution Foundation, alternative financing options will become essential.
Divido research earlier this year found that 58.3% of consumers see checkout finance as a tool for helping them manage their finances, 50.4% of consumers would be more likely to complete a purchase if they knew checkout finance was a payment option and 54.2% would consider spending more if this was an option. The research highlighted the opportunity for merchants to maintain and in some sectors boost sales, tap into a new customer base, and retain customer loyalty.
Retailers are aware that consumers have shifted their financing habits to keep pace with the rising cost of living. In fact, last year, 76% of large retailers in the UK had implemented at least one form of checkout finance. Now, they need to make their retail finance programmes work harder for them, to prevent bad customer credit experiences and potential sales losses.
Brian Flesk, Head of Retail at Novuna Consumer Finance comments:
Notes to editors:
- Divido connects merchants, lenders and payment partners at points of sale across Europe to offer checkout finance solutions.
- Divido offers merchants access to retail finance across multiple markets with one integration, or to whitelabel its tech stack to help merchants launch their own services.
- Through Divido, consumers can instantly access finance from established lenders at the moment they need it, online, in-store and on the go.
- Divido is fully regulated and fully ISO 27001 certified.
- Divido has received The Queen’s Award for Enterprise, and Deloitte included Divido in its 50 Fastest Growing Technology Companies in the UK.
- Headquartered in London, the business employs over 100 people.
- Find out more at https://www.divido.com/
Novuna Consumer Finance
Novuna Consumer Finance is one of the UK’s leading providers of retail point of sale finance and personal loans, lending over £2.3bn to more than a million customers each year.
The business works with 3,500 retailers from high street brand names to niche online ecommerce retailers, providing fast, flexible finance solutions that integrate into all channels.
Its loans channel, Novuna Personal Finance, has been voted the UK’s ‘Best Direct Personal Loan Provider’ in the Your Money Awards for nine years running, and the business retains one of the highest customer satisfaction scores in the market.
Novuna Consumer Finance is a trading style of Mitsubishi HC Capital UK PLC, part of Mitsubishi HC Capital Inc., one of the world’s largest and most diversified financial groups, with over £60bn of assets.