Enhancing Customer Financing Through Tailored Credit-Score Based Installment Options

The Approach

The first step of this project was to understand the add-on code used to calculate the present installments. The installments are calculated based on the customer's rating. We received the information from the client and incorporated it into the code.

The process obtains a customer's rating number, applies that to the calculation, and passes the final installment breakdown to the ERP to display the options.

The Project

In this application, users come to the point of sale and make payments with a payment card. To facilitate the process, users must swipe their card on the POS machine. Following this, a password is input on the screen, the enter button is pressed, and the machine verifies the provided credentials to finalize the payment transaction through the POS. Once the transaction is complete, users receive a receipt confirming the payment.

Another functionality of the application involves allowing users to make payments in installments. Before proceeding with installment payments, users are required to provide their credit score. They can then make payments in installments based on their credit score.

Regarding the deployment process, an add-on needs to be deployed on the iVend Management Console application. It involved preparing the build of the source code with the .NET Framework 4.5.2 and zipping the PDB file and main application. The administrators log in to the application and navigate to the administration section, followed by IT administration and Add-On Manager. Here, we deployed the add-on to the console management application, which automatically restarts the application.

Once the deployment is complete, the application's iVend POS system functionality must be verified. Users log in to the POS application and enter the transaction's required customer and product IDs. They can make a direct sale by clicking on the "Pagos" button, which prompts a list of payment types to appear. Alternatively, they can choose the "Proforma" button, which presents a payment installation option and an initial payment option. After accepting the conditions, the user proceeds with the payment process, which may involve displaying a QR code for scanning and currency conversion. Users can check the transaction status to ensure it has been successfully processed upon completion.

The Benefits of Customer Financing

Customer financing can attract customers who need help to afford a product's full cost. It gives options to a customer and attracts more customers for a business. This business conducts its credit checks, a primary financing model, meaning it would have to pay costs associated with credit checks and collecting payments.

Having software that automates the differentiation of good and bad credit scores streamlines the process and allows this business to offer different installment options. Studies have shown that people are willing to pay a higher price for an item when they can spread the cost over time. According to a study by PYMNTS Intelligence, around 65 percent of consumers are more likely to shop at merchants that offer buy now, pay later options. According to a survey by LendingTree, almost 70 percent of consumers spend more when using an installment plan than they would otherwise. RBC Capital Markets estimated that point-of-sale loans increase retail conversion rates by 20-30 percent. These statistics indicate a significant incentive for retailers to explore providing such options to their shoppers, if they have not already.