Furniture retailers relying solely on buy now, pay later (BNPL) risk missing sales and limiting how much customers are prepared to spend, according to retail finance specialist Product Partnerships.
The firm is urging furniture retailers to consider a broader range of finance options as consumers increasingly use credit to manage major purchases and spread spending over longer periods. Longer-term finance can help make higher-value purchases more affordable by reducing monthly repayments, it says, but the focus should be on offering suitable options that reflect customers’ circumstances, support affordability and deliver good customer outcomes.
Research cited by Product Partnerships found that 80% of consumers said the availability of finance heavily influenced their decision to buy from a particular retailer, while 48% said access to finance encouraged them to spend more.
The research also found retailers without a finance offer risk losing almost 44% of customers. Some 26% said they would either abandon the purchase or buy from another retailer, while a further 18% would have second thoughts about making the purchase.
Product Partnerships says the figures underline the commercial importance of finance at a time when BNPL has become firmly established as a mainstream payment method.
More than 17 million UK consumers use BNPL or deferred credit, according to Experian. FCA figures also show deferred payment credit lending grew from £60m in 2017 to more than £13b in 2024.
However, Product Partnerships argues that BNPL represents only one part of the opportunity. Longer-term regulated finance can allow retailers to spread the cost of higher-value purchases over two, three or even five years, potentially widening the pool of customers able to make larger purchases.
Product Partnerships' chief executive Phillip Garlick comments: “BNPL has done an important job in making consumers comfortable with the idea of spreading the cost of purchases, but furniture retailers should not assume that it is the right answer for every customer or every transaction.
“For higher-value purchases, the ability to spread payments over a longer period can make a significant difference. It can bring a purchase within reach, allow customers to choose the product they actually want and give retailers access to customers they might otherwise lose.
“The question furniture retailers should be asking is not simply whether they offer finance. It is whether they have the right range of finance for their customers, their products and the size of purchase they are trying to make.”
The opportunity is particularly relevant in higher-ticket retail categories. V12 Retail Finance data cited by Product Partnerships showed the value of retail finance increased 4% between January and March 2026 compared with the same period last year. Furniture accounted for 57% of finance values, while home improvement was the fastest-growing category, with finance values rising by a third year on year.
Phillip says offering different finance options could also help retailers reduce abandoned baskets and compete with rivals offering customers greater flexibility at checkout.
He adds: “Furniture retailers spend considerable amounts attracting customers and getting them to the point of purchase. Losing somebody at the final stage because the payment options do not work for them makes little commercial sense.
“A broader finance proposition is ultimately about giving customers more ways to buy. Done properly, that can widen the addressable customer base, support bigger purchases and remove one of the barriers standing between consideration and a completed sale.”
The push comes after new FCA rules governing deferred payment credit took effect on 15th July, bringing previously unregulated BNPL agreements under FCA regulation and introducing new consumer protections.
Product Partnerships says the changing regulatory environment also strengthens the case for retailers to take a more considered approach to finance, ensuring the products they offer are appropriate for their customers and properly integrated into the wider buying journey.
