Duologi: Finding the right balance – the future of consumer credit

Duologi has released a new report, “Striking the Right Balance – The Future of Consumer Credit”.

From the perspective of credit, consumers believe that the current product supply is insufficient, and 20% of respondents do not trust bank loans.

Consumer frustrations when applying for credit are high and can lead people to forgo loans: 56% of respondents have experienced very high annual percentage rates (APRs), 24% of consumers feel the credit card application process is too slow, 20% of respondents feel approval takes a long time, 28% of consumers have encountered hidden fees, and 26% of respondents have heard confusing terminology that makes the application process difficult.

Awareness of POS options is low, with 94% of consumers not asking retailers if they offer POS options. However, the survey found that most consumers would consider using POS in the future. 78% of respondents would consider using POS to pay for a product or service, and the average loan amount for these people would be £620. This means that without this settlement method, the UK will lose £25 billion in revenue.

POS settlement will become the key point for merchants to gain competitiveness and increase sales. Currently, 27% of British people have never used credit cards to settle any goods or services. Not supporting credit cards means that merchants will lose 40% of sales.

When buying goods with a credit card, 75% of respondents said that 0% fees was an important consideration. Among those with an income of more than £40,000, this figure rose to 81%. A quick and convenient process was also important to 40% of consumers.

Offering a wide range of settlement options is a huge opportunity for merchants:

34% of consumers are more likely to purchase from an establishment that supports POS;

20% of respondents will abandon companies that do not provide suitable settlement methods;

28% of consumers will repeatedly purchase products from businesses that offer POS;

26% of respondents said they would likely spend more if credit card settlement was widely supported.

Flexible and multi-channel spending is key, with 46% of consumers believing that POS should be supported both online and in-store.

POS is particularly important for some industries, such as retail, healthcare, education, tourism and real estate.

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