How does Lendaily help merchants at the POS?

It’s the fear of every merchant: Your hard-earned customer is about to pay and suddenly they switch from the excitement of buying – to the fears of paying. It could be that they’re afraid to pay high interest rates on their credit card—or maybe they’ve exhausted their credit limit. Whatever the reason, the sales goes south.

Most people use their credit cards for daily expenses such as gas, food, and perhaps auto pay for recurring bills, like phone service or utilities. But they oftentimes grow reluctant to use credit cards for what they consider ‘non-necessities.’ For many, debit cards are not an ideal option, either. They don’t like the idea of having funds instantly drawn from their bank accounts, watching their balances shrink, and subsequently questioning if the purchase is even a good idea. This happens in stores and online every day, and it’s why an estimated 70% of all online shopping carts are abandoned (WSJ, 2015).

Some merchants offer additional credit options that go beyond the basic credit, debit, or online payment services. Private Label Credit Cards (PLCC), co-branded by the merchant and national issuers are common in the bigger stores, but they carry similar cost burdens for the merchant as typical credit cards, and oftentimes include nasty transaction fees. There are also a multitude of credit companies offering term loans to finance customers with larger purchases. These loan programs often gouge the merchant with fees – and are not always kind to the consumer. Allowing customers more months with lower payments often costs the merchant more. Still other companies offer a form of consumer credit in specific market segments such as healthcare or automotive, but that same credit line is also accepted by thousands of other merchants – including their competitors—negating any urgency for the consumer to complete the transaction.

Lendaily takes a different approach for breaking down the barriers in the merchant-consumer relationship. By starting from the perspective of the merchant, Lendaily has created a better way to go: a revolving credit, merchant-branded, consumer finance solution that serves the needs of customers without imposing high costs on merchants. Credit is approved in seconds and doesn’t put a crimp in customers’ existing financial accounts. The buyer has a simple and seamless engagement at checkout with no buyer’s guilt, credit concerns or other distractions. The merchant has a far better platform for sales and a means to expand customer loyalty—while maintaining their brand and retaining all important customer data.

As Gary Pryor likes to say, “It’s all about our merchants and not about us.” The credit line is merchant-branded, the funds are closed loop, so it can only be spent with the issuing merchant, and—best of all—the merchant gets paid immediately with lower fees. What’s not to love? It’s the new way to issue credit: A merchant-centric solution that helps mitigate purchase reluctance and saves money.

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