Following a strong year for the DIY and home improvement market during 2020, leading UK LendTech company, DivideBuy, has revealed that 54% of retailers onboarded in 2021 are based in this sector.
The increasing number of home improvement brands turning to interest free credit (IFC) solutions has stemmed directly from the sheer amount of property upgrades occurring during the nationwide COVID-19 lockdowns.
By introducing IFC options to their checkout, home improvement retailers have been able to increase their basket values and drive the sales of bigger ticket items. In particular, desirable items such as expensive furnishings or home electronics are prime candidates to experience a sales uplift.
Due to the benefits IFC brings to both retailers and consumers, in 2020 alone, it racked up £9.6 billion in UK sales. That figure is expected to rise to £26.4 billion by 2024, with DivideBuy predicting a further use of IFC in the DIY, building and consumer technology sectors – where average ticket values tend to be larger.
James Bradley, Director of Sales and Business Development for DivideBuy, commented: “Consumers are increasingly favouring the flexibility of interest free credit to spread the cost of purchases. It’s now one the world’s fastest-growing payment methods – a trend that we’ve seen home improvement brands leverage in order to increase sales and better service their customers at a time when they’re spending more time at home and looking to make changes.
“More than this, through IFC, retailers give consumers more responsible and supportive finance options that enable access to the products they need without high or unknown costs. And being powered by an innovative LendTech like DivideBuy gives both retailers and consumers an added security over each sale.”
IFC can be integrated at both online and in-store checkouts. Unique to DivideBuy, retailers can register, approve and onboard customers in a matter of seconds through soft credit checks that don’t leave a mark on their credit score. Also individual to this LendTech is that it provides both the technology and the credit lending facility, cutting out expensive middlemen and enabling retailers to use transaction data to improve marketing strategies and customer service.
As a result of its distinctive offering, DivideBuy has grown rapidly over recent years, with it recently being named the UK’s fastest growing technology company by multinational professional services firm, Deloitte.
James Bradley continued: “While there’s a particular spotlight on the home improvement space, we’re seeing a marked increase in retailers providing flexible IFC checkout options across almost every sector. This is since more than a third of consumers value the convenience, transparency and spending control that it provides.
“Interest free credit has proven pivotal in helping businesses stand out from the competition to capture consumer attention or recoup funds lost during pandemic lockdowns. Seeing more and more retailers onboard with us each month demonstrates how truly important IFC facilities are to the market right now.”