Chetu – Custom Software Development CompanySearch blackphone blackcross black

Case Study

Enhancing Customer Financing Through Tailored Credit-Score Based Installment Options

Chetu empowered a leading South American retail company by refining their retail POS system add-on, allowing tailored installment payment options.

  • Industry
  • Technology Leveraged

    The technology leveraged on this project included:

  • .Net Core
  • SQL Server
  • Web API
  • JavaScript
  • jQuery
  • HTML 5
  • CSS
  • Bootstrap
  • Visual Studio

Project Solution:

Chetu modified the existing add-on to calculate installment payment options based on customer creditworthiness, improving the company's potential average converted visits performance.

This client has been selling products in Bolivia for 12 years. Bolivia is a small country in South America with a population of approximately 12 million. Of this population, approximately 3% are credit card users. Our client had the proposition value of financing their customers for the products they buy.

A customer's creditworthiness is one of the most important factors for this business. Eighty percent of the company's income is from the products it finances. While the company will still sell a product to a customer who purchases it in cash, its strength is in financing its products.

The company uses a product called iVend retail. This product is a POS for supermarkets where the product is scanned, and the customer pays. The iVend retailer has a layer in the architecture that enables users to develop add-ons for their needs. Four years ago, the company hired a developer to calculate the installment payments offered to their customers. With this add-on, they may simulate what the payment will be and be able to provide several options of, for example, 12 months, 18 months, etc. This information is then sent to their ERP, which is SAP Business One, which has a connector.

This client approached Chetu to modify their existing add-on to provide these different installment options based on the customer's creditworthiness. The present add-on must differentiate between a good-paying customer and a bad-paying customer. They wanted Chetu to develop the code to obtain the customer's payment history and offer the customer forms of payment that would be appropriate to the risk of their past payment behavior.

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.

Suggested Reading

Chetu Develops Intelligent POS System for Wild Birds Unlimited

Chetu Develops Intelligent POS System for Wild Birds Unlimited

Read More
Customized Retail Management POS System

Customized Retail Management POS System

Read More
Chetu Client Requires a Multilingual POS Software for Global Sales

Chetu Client Requires a Multilingual POS Software for Global Sales

Read More

Drop us a line or give us a ring. We'd love to hear from you and would be happy to answer any questions.

Apps Built
Happy Customers
Repeat and Referral Business

Privacy Policy | Legal Policy | Careers | Sitemap | Referral | Contact Us

Copyright © 2000-2024 Chetu Inc. All Rights Reserved.

Button to scroll to top

By continuing to use this website, you agree to our cookie policy. GOT IT