DivideBuy, the leading UK Point of Sale (POS) finance pioneer, has today revealed continued sales success for Black Friday 2022 following a strong 2021, with an increase in gross sales and a 12.8% increase in gross merchant value from previous years.
One of the biggest shopping events of the year around the world, DivideBuy’s success this Black Friday was particularly evident for larger home furnishing items – particularly sofas and mattresses, which both saw high conversion rates over the sales period.
Despite the day having grown in popularity in recent years, a turbulent political and financial climate in recent years has contributed to more lacklustre sales since the Covid-19 pandemic: Black Friday sales in 2021 were just £4.85 billion compared to the peak of £6 billion in 2020.
While this lack of growth has led some to question whether Black Friday is worth it for retailers, the evidence from DivideBuy’s Black Friday sales 2022 shows the event can still provide a profit boost to retailers providing POS finance across the country.
By introducing POS finance at checkouts, either online or in-store, retailers across sectors have been able to boost revenues by helping consumers to attain considered, aspirational purchases by distributing costs over several months. DivideBuy’s effective software has enabled retailers to record up to a 70% increase in sales conversions, an increase of up to 43% in ‘big ticket’ item sales and an increase of up to 35% in average basket value.
Robert Flowers, CEO and founder of DivideBuy said, “Consumers are increasingly favouring the flexibility of POS finance to spread the cost of purchases. It’s now one the world’s fastest-growing payment methods – a trend that we’ve seen consumer continue to utilise this Black Friday despite the challenging financial market.”
“As both the technology platform provider and lender, we can remain in control of each part of the lending process, making our interest free lending work in the interest of both the consumer and the retailer. Unique to DivideBuy, retailers can register, approve and onboard customers in a matter of seconds.
“DivideBuy’s Soft Search credit checks lets buyers test their eligibility for finance without harming their credit score, after which a hard search is applied with consent from the customer. Being powered by an innovative LendTech like DivideBuy gives both retailers and consumers an added security over each sale. We want to become the perfect credit partner for consumers and retailers, offering the nation’s shoppers ethical, transparent and truly flexible finance.”
Interest free POS finance is the fastest-growing e-commerce payment method in the world today, accounting for 2.9% of global eCommerce transaction value in 2021 and projected to account for a 5.3% share of the market by 2025. As an easy and convenient payment option in comparison to credit cards that charge interest and higher fees, it is also a hit with the millennial generation.
Demonstrating the understanding and support it provides to its retailers and the buying choices of their customer bases, DivideBuy has continued to provide flexible finance options to retailers in 2022 to enable customers to attain big-ticket purchases.
Last year DivideBuy announced a milestone £300m funding agreement with global investment management firm, Davidson Kempner Capital Management LP. This follows an increase in DivideBuy’s consumer base, a major shift in consumer attitudes towards interest-free credit and its acquisition of several major retail partners. Earlier this year, DivideBuy appointed a new Commercial Senior Leadership Team, headed up by Teresa Byrne, Chief Commercial Officer, to further drive sales and business growth.