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Retail bank releases in-store retail finance QR codes

Written by Jonathan Axup

This year one of Divido’s UK bank clients rolled out retail finance QR codes across nationwide stores of a leading retail and grocery giant. The high street bank already issued merchant co-branded credit cards, but with shifting consumer preference towards retail finance, it spotted an opportunity to offer merchant co-branded retail finance in-store. The merchant saw this as a better way to grow loyalty than handing its customers over to a third-party BNPL app.  

iPhones and Android smartphones now all support QR scanning conveniently within their native camera apps – simply point your phone and tap the URL that appears onscreen.  

This solution works so well because it is already the norm in the UK for consumers to scan mobile wallet QR codes at checkout to enjoy the benefits of loyalty programs, including discounts and coupons. Driving this change is the decision by many UK supermarkets to ask customers to scan loyalty program QR codes at checkout to avoid paying higher prices. Having one QR code to cover both payment and loyalty program benefits makes the checkout experience simpler and faster for customers. 

Consumers apply for a standard £500 revolving credit account either on the merchant website or by scanning a QR code in-store. The in-store QR code is essentially a URL address directing consumers to download the app and start the finance application journey to input their details and receive a credit decision from the lender. 

Once customers have applied for credit, they simply download the retailer’s mobile app, select in-store payments, and generate a unique QR code, which can be conveniently stored in their mobile wallet. At the checkout there is the option to pay by retail finance, customers tap this option or tell the cashier then scan their QR code to pay. The bank integrated its loan management stack directly with the merchant to manage revolving credit drawdown. 

Customers benefit from up to 45-days of interest free credit if they pay off the amount in full, which helps them manage their finances. The retailer combined this with a 20% discount on the first purchase, which is helping drive even higher conversion rates. 

Divido is built on a modular architecture so we can simplify technology partnerships between banks and merchants to enable co-branded retail finance solutions. Our platform embeds retail finance online, in-store, by telesales, and everything in-between. Banks simply need to provide their own loan management system, including credit decisioning.  

Interested to know how this QR solution works, and how it can support your business? Watch a Divido demo here, or sign up for an instant-access free trial and experience the Divido Merchant Portal today. 

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