In crisis, monthly payments can make a difference
“Every little thing counts in a crisis.”
The quote from Jawaharlal Nehru, the first prime minister of India, is a timely reminder that even a single transaction or decision can make a big difference right now.
As you look to protect revenue and serve customers worried about their paychecks, there isn’t a better time to offer monthly payments. Giving your shoppers the flexibility to pay over time can help them buy items to get through the coronavirus pandemic.
Alternative payments drive spending in key categories
Offering flexible payment options can drive business, especially at this time when every sale is critical. Our retail partners see up to 85% higher average order values when they offer Affirm on their sites. And many of our partners are seeing sales surge as shoppers buy items online to enhance extended stay-at-home periods.
Here are some recent buying trends we’re seeing in our network:
Our home category has seen about 20% growth when compared to pre-social distancing. Shoppers are prioritizing comfort at home as they buy mattresses and furniture from retailers like Nectar, Article, and Burrow.
Our kitchen supplies category has seen a 70% increase as people buy mixers, grills, and more from Affirm partners like KitchenAid, Traeger Grills, and Coravin.
With more Americans working from home, purchases of office-related products rose more than 200%. Customers are fixing up their home offices with monitors, ergonomic chairs, and stand-up desks from Uplift Desk, Ergotron, and more.
With gyms closed around the country, many people are looking for ways to work out at home. Our home fitness category increased over 160% as shoppers bought equipment from Peloton, Tonal, Mirror, and other fitness brands.
Online checkouts from millennials and Gen Z customers increased 9% as more shoppers in this demographic have chosen monthly payments during the crisis.
In each of these examples, offering monthly payments is essential to meeting consumer demand and driving sales.
Shoppers prefer pay-over-time options
With U.S. credit card debt already at an all-time high, many consumers are choosing alternative ways to pay for what they need right now. This shift is also generating loyalty: Our research shows that 60% of shoppers think more favorably of brands that offer flexible payment methods.
The changes in shopping behavior we’re seeing may accelerate the broader adoption of split payments. McKinsey & Company recently identified flexible payments as a trend that is already gaining momentum. The Business Insider also reported that monthly payments may remain a popular credit card alternative with consumers after the crisis ends.
The pandemic is challenging business continuity in all sectors. Offering your customers the flexibility of fixed monthly payments may be just the thing to help them through this crisis. And it may continue to pay dividends for your business during the economic resurgence that’s sure to follow.
To see how offering monthly payments with Affirm can help drive sales now, visit our site.
NOTE: The consumer insights shared compare spending volume January 1-March 14, 2020, to spending volume March 15-April 8, 2020.