# Rapidly evolving buy now pay later finance drives retail growth
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-15
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Revolutionising UK Retail: The Checkout Finance Solution
Meta Description: Discover how Deko's multi-lender, multi-product platform is transforming the retail sector with flexible payment options, reducing cart abandonment rates
URL: https://financedigest.com/rapidly-evolving-buy-now-pay-later-finance-drives-retail-growthhtml

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_By_ **_Mike Dawson,_** _CEO, Deko_

The retail industry has in recent years changed in a manner more profound than anything seen in the sector since the first department stores and malls emerged a couple of centuries ago. Led by a migration from in-store to online purchases, the changes to the UK retail sector are mostly irreversible. This movement to [online has been fuelled by a revolution in retail finance](https://www.financedigest.com/online-marketplaces-embracing-embedded-finance-to-benefit-both-customers-and-vendors.html "Online marketplaces: embracing embedded finance to benefit both customers and vendors     "), one which is built on the simple premise: making it simple and easy to split payments.

Yet, [amid shifting](https://www.financedigest.com/cellnexs-ceo-tobias-martinez-steps-down-amid-strategy-shift.html "Cellnex’s CEO Tobias Martinez steps down amid strategy shift") retail habits, one key challenge remains: cart abandonment. In the UK, 85% of baskets created [via mobile in 2021 did not result in a completed](https://www.financedigest.com/yolt-becomes-first-money-app-to-complete-the-integration-of-all-new-users-via-an-open-banking-api.html "Yolt becomes first money app to complete the integration of all new users via an Open Banking API") order. The limited range of checkout payment solutions on offer is a [major factor](https://www.financedigest.com/the-stir-to-be-different-a-major-factor-of-growth-of-the-flax-seeds-market.html "The Stir To Be Different A Major Factor Of Growth Of The Flax Seeds Market"). As merchants face the challenge of selecting and integrating the right providers for their business, multi-lender, multi-product [platforms can provide](https://www.financedigest.com/fico-provides-decisioning-platform-for-smartphone-only-buddybank-in-italy.html "FICO Provides Decisioning Platform for Smartphone-Only buddybank in Italy") the key.

**The checkout** [finance revolution](https://www.financedigest.com/the-embedded-finance-revolution.html "The Embedded Finance Revolution")

Research shows that close to 10 million [Britons have chosen not to buy](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") from merchants which do not offer alternative payment methods at checkout. Just as shoppers expect to have a choice between cash or card payments, checkout [finance has become a desirable option](https://www.financedigest.com/7-finance-career-options-to-consider-and-what-you-need-to-know-about-each.html "7 Finance Career Options to Consider and What You Need to Know About Each") to ensure a smooth shopping process for the customer.

[Technology lies at the heart of this revolution in checkout finance](https://www.financedigest.com/2016-the-year-of-technology-financing-the-year-of-business-growth.html "2016 – THE YEAR OF TECHNOLOGY FINANCING, THE YEAR OF BUSINESS GROWTH"). Driven by consumer demand for simple, convenient, and seamless purchasing experiences, businesses have increasingly adopted [buy now pay](https://www.financedigest.com/beat-the-exchange-rate-and-buy-that-dream-holiday-home-by-paying-in-pounds.html "Beat the exchange rate and buy that dream holiday home – by paying in pounds! ") later (BNPL) solutions. Now, [nearly a fifth of UK adults](https://www.financedigest.com/nearly-half-of-parents-still-give-pocket-money-to-their-adult-children.html "Nearly half of parents still give pocket money to their adult children") use BNPL services once a month. It is a rapid change which is set to continue, with ecommerce predicted to [reach a market](https://www.financedigest.com/herbal-supplements-market-to-reach-us-191-7-bn-by-2030-at-10-6-cagr-fmi.html "Herbal Supplements Market to Reach US$ 191.7 Bn by 2030 at 10.6% CAGR: FMI") share of 21.8% by 2024.

Younger generations have driven this trend, and alternative [payment solutions](https://www.financedigest.com/adyen-rejuvenates-in-store-payment-integration-with-an-api-pos-solution-powered-by-nexo-standards.html "Adyen rejuvenates in-store payment integration with an API POS solution powered by nexo standards") have also proved popular with this cohort, with 42% of 18–24-year-olds having used BNPL products. As part of the same survey, only 31% of respondents had used [credit cards](https://www.financedigest.com/uk-credit-card-borrowing-rises-by-most-since-2005-boe.html "UK credit card borrowing rises by most since 2005 – BoE"). These figures [highlight the considerable demand for checkout finance](https://www.financedigest.com/board-report-highlights-complex-decision-making-process-across-banking-and-finance-sector.html "Board Report Highlights Complex Decision-Making Process Across Banking and Finance sector"), led by the generation driving the ecommerce revolution.

**Any basket, any size, any time**

While early BNPL offerings in the UK have embraced straightforward single-lender products, the new wave of innovation is [offering access to multiple lenders spanning broader basket ranges and wider credit](https://www.financedigest.com/credit-suisse-offers-higher-deposit-rates-in-asia-to-woo-the-wealthy-sources.html "Credit Suisse offers higher deposit rates in Asia to woo the wealthy – sources") acceptance. Driven by growing demand, it combines short-term [BNPL solutions](https://www.financedigest.com/exploring-the-key-features-of-bnpl-solutions.html "Exploring the key features of BNPL solutions") with longer-term instalment financing, operating across a range of lenders with varied risk appetites.

This [provides greater flexibility both to merchants and customers](https://www.financedigest.com/banks-can-provide-a-protective-shield-to-defend-customers-from-cyber-attack.html "Banks can provide a protective shield to defend customers from cyber attack") and allows for solutions that are tailored to specific product ranges. Most importantly, it translates to [higher conversion rates](https://www.financedigest.com/wall-st-heads-higher-as-fed-rate-hopes-dent-dollar.html "Wall St heads higher as Fed rate hopes dent dollar"), fewer cart abandonments, and more sales. A whole-of-market aggregation like this is already available via Deko’s multi-lender, multi-product offering, giving more [buying power to consumers](https://www.financedigest.com/from-burgers-to-bleach-stressed-consumers-buy-cheap.html "From burgers to bleach, stressed consumers buy cheap").

**A future-proof solution**

The multi-lender approach used by Deko is captured in a single product allowing more customers to [access easily managed instalment plans](https://www.financedigest.com/are-the-over-55s-accessing-their-pensions-early-failing-to-plan-for-later-life.html "Are the over-55s accessing their pensions early failing to plan for later life?") without fees or high-interest rates. Powerful technology rapidly and automatically matches customers with a marketplace of lenders, increasing the rate of approval among [applications for finance](https://www.financedigest.com/application-security-in-the-finance-industry-what-you-should-know.html "Application Security in the Finance Industry: What You Should Know") at checkout. By automatically guaranteeing the best match between consumers, [merchants and lenders, merchants gain an average increase in acceptance](https://www.financedigest.com/what-can-global-acceptance-standards-do-for-merchants.html "What can global acceptance standards do for merchants?") of almost 30% compared to single-provider solutions.

Deko’s product can be plugged seamlessly into any existing infrastructure in as little as 24 hours, with over 22 ecommerce platforms currently supported. The speed at which this integration of flexible payment [finance tools can be done ensures minimal disruption to merchants’ business](https://www.financedigest.com/1-in-3-uk-businesses-looking-for-finance-are-finding-it-harder-to-get-a-loan.html "1 in 3 UK businesses looking for finance are finding it harder to get a loan") operations and quickly gives customers a far better online or physical store experience.

Of course, there is an understandable reluctance to abandon the high street. But the pandemic has obliged [merchants to have an online](https://www.financedigest.com/three-online-fraud-trends-beauty-and-cosmetics-merchants-should-watch-out-for.html "Three Online Fraud Trends Beauty and Cosmetics Merchants Should Watch Out For") presence to supplement in-store shopping. The upward [trend in online retail](https://www.financedigest.com/key-trends-disrupting-uk-e-commerce-retail-in-2022.html "Key trends disrupting UK e-commerce retail in 2022") is accelerating rapidly. In a virtual environment with thousands of merchants, flexible checkout [finance solutions covering any basket size can help businesses](https://www.financedigest.com/6-ways-to-spring-clean-your-business-finances.html "6 ways to Spring clean your business finances") stand out. Merchants need to be on board, or risk being overboard – and very likely [left behind](https://www.financedigest.com/click-and-collect-or-get-left-behind.html "Click and Collect or get left behind").


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