What is In-Store Financing?

In-store financing is a point-of-sale financing or embedded lending solution that enables customers to apply for and receive credit approval during physical retail transactions. Banks and lenders partner with merchants to offer installment plans, lines of credit or buy now pay later options at checkout, allowing consumers to split purchases into manageable payments. The financing decision happens in real-time through digital applications or integrated systems.

In-store financing expands lending portfolios beyond branch-based origination while capturing high-intent borrowers at the moment of purchase.

Why Do Merchants Prioritize In-Store Financing?

Merchants using point-of-sale financing can increase overall sales by 32%. Merchants strongly prefer bank-backed solutions, with 90% indicating they would offer point-of-sale finance if supported by a regulated financial institution rather than unregulated fintech alternatives.

What Challenges Do Banks Face Implementing In-Store Financing?

Integration with existing core banking systems creates the primary barrier for financial institutions entering in-store lending. Legacy infrastructure lacks real-time data synchronization capabilities required for instant credit decisions at merchant locations. Banks must orchestrate multiple third-party services including fraud detection, identity verification, electronic signatures and payment gateways while maintaining regulatory compliance.

Traditional lenders lag behind fintechs in deployment speed because lengthy approval processes fail to meet consumer expectations for frictionless checkouts. Modular platform adoption helps banks overcome these obstacles without complete system overhauls. Strategic merchant partnerships require standardized integration approaches and white-label capabilities that preserve bank branding.

How Does Omnichannel Integration Enhance In-Store Financing?

Omnichannel lending platforms enable borrowers to access the same financing options in physical stores, online or via mobile apps. This seamless channel transition requires unified data architecture that connects in-store point-of-sale systems with digital lending infrastructure and loan management platforms.

Banks adopting omnichannel strategies for 2026 prioritize API-driven orchestration layers that dynamically tailor credit offers across touchpoints. Real-time data sharing between channels boosts conversion rates while reducing operational costs through automated workflows. Digital-owned hybrid models combine in-store loan originations and instant decisions with automated fund disbursement and loan servicing.

What In-Store Financing Trends Will Shape 2026 for Banks?

Banks entering in-store financing in 2026 will compete directly with BNPL fintechs as lending shifts from standalone products to integrated merchant ecosystems. AI will enable hyper-personalized credit decisions at point-of-sale using alternative data sources and explainable algorithms that meet compliance requirements.

Buy now pay later transaction values are projected to reach $442.6 billion by 2027 in the U.S., with growth accelerating in omnichannel retail environments. Traditional banks must adopt cloud-native loan origination systems and modular orchestration platforms to match fintech deployment speeds.

How Does Jifiti Enable Banks to Scale In-Store Financing?

Jifiti’s white-label platform allows banks to deploy in-store financing across unlimited merchant locations through a single integration. The modular architecture connects to existing core banking systems while orchestrating third-party services for verification, fraud prevention and payment processing in real-time.

Banks maintain complete brand control and regulatory compliance while offering consumers seamless approval experiences comparable to fintech competitors. Jifiti’s omnichannel capabilities enable borrowers to initiate applications in-store and manage repayments digitally. Financial institutions using Jifiti’s orchestration layer can rapidly test new merchant partnerships and loan products without disrupting existing technology infrastructure.

Key Takeaways

• In-store financing captures high-intent borrowers at the point of purchase, with merchants reporting 32% sales increases and viewing it as a strategic priority for 2025.
• Omnichannel integration allows seamless offerings between in-store and online customer channels, requiring API-driven orchestration platforms that unify legacy systems with modern lending infrastructure.
• White-label modular platforms enable banks to scale across merchant networks through single integrations while maintaining brand control and regulatory compliance.