Flexible Repayment

A flexible payment was a type of adjustable-rate mortgage that allowed the borrower to select from different payment options each month. Common in the early 2000s, they made it possible for many people to get home loans, but their lax standards helped contribute to the subprime mortgage meltdown of 2007–2008.

A flexible payment ARM was a type of adjustable-rate mortgage that allowed borrowers to choose from among four different payment options each month. These payment options were a 30-year mortgage payment, a 15-year payment, an interest-only payment, and a minimum payment.

Flexible payments are becoming increasingly popular in digital sales, especially among the younger generation. With gen-Z and millennials opting not to get credit cards, you can see where the appeal for flexible payments lies. In this post, we’ll take you through some of the benefits of offering flexible payments options to your customers, so you can decide if it’s right for your business.

Benefits of flexible payments service

• Increase sales
• Reach new audiences
• Increase conversions
• Improve customer loyalty

Its been a while since I posted – readers will realise that my lull in posts has coincided with my move to Johannesburg and my starting a new job in engineering consulting.

Increase sales

Customers are also more likely to keep adding to their basket if they see there is the option to make flexible payments. This means that, as well as buying that $150 dress, they might also opt to add some shoes and a jacket too. Knowing that they can pay in installments or at a later date once they get paid ultimately gives customers the security and confidence to fill up their cart.

Reach new audiences

Becoming a flexible payments provider won’t just get you in good stead with customers that come your way, it may actually be the reason customers come your way. That’s because there are tools for discovery tailored to helping people find options with flexible payments. This means that those who are actively seeking that out as a payment option are far more likely to land on your storefront.

Improve customer loyalty

Customers appreciate having a personalized payment plan that can meet their budget and needs. Offering a degree of flexibility with payment can both help attract new customers and keep customers coming back. It can even increase the likelihood that they’ll shop with you over your competitors who don’t offer flexible payment options. And, while attracting new customers is great for growth, retaining the customers you do have will bring in far more revenue over the long term. It therefore pays to prioritize boosting customer loyalty rates, and offering a flexible payments service may just be the ticket to achieving that.