HP Expands Financing Options for Consumers Across All Credit Tiers
HP Inc. (NYSE: HPQ) has announced new comprehensive U.S. consumer financing options for products purchased on HP.com. By partnering with ChargeAfter, Bread Financial, Concora Credit, and Koalafi, HP now offers financing to nearly every U.S. consumer across all credit tiers. Options include promotional financing for qualified buyers and lease-to-own with no credit needed.
This initiative aims to empower consumers with purchasing power for PCs, printers, and peripherals. The move responds to increased financial pressures and consumer demand for flexible payment options. HP's new financing program includes private label credit cards, buy now pay later options, non-prime credit access, and lease-to-own arrangements. The company plans to expand these options to other markets in the future.
HP Inc. (NYSE: HPQ) ha annunciato nuove opzioni di finanziamento per i consumatori negli Stati Uniti per i prodotti acquistati su HP.com. Collaborando con ChargeAfter, Bread Financial, Concora Credit e Koalafi, HP ora offre finanziamenti a quasi tutti i consumatori statunitensi in tutte le categorie di credito. Le opzioni includono finanziamenti promozionali per acquirenti qualificati e noleggio con opzione di acquisto senza necessità di credito.
Questa iniziativa mira a fornire ai consumatori una maggiore capacità di acquisto per PC, stampanti e periferiche. La mossa è una risposta alle crescenti pressioni finanziarie e alla domanda di opzioni di pagamento flessibili. Il nuovo programma di finanziamento di HP include carte di credito private, opzioni di acquisto adesso e pagamento dopo, accesso al credito non primario e contratti di noleggio con opzione di acquisto. L'azienda prevede di espandere queste opzioni ad altri mercati in futuro.
HP Inc. (NYSE: HPQ) ha anunciado nuevas opciones de financiamiento integrales para consumidores en EE. UU. para productos comprados en HP.com. Al asociarse con ChargeAfter, Bread Financial, Concora Credit y Koalafi, HP ahora ofrece financiamiento a casi todos los consumidores de EE. UU. en todos los niveles de crédito. Las opciones incluyen financiamiento promocional para compradores calificados y arriendo con opción a compra sin necesidad de crédito.
Esta iniciativa tiene como objetivo empoderar a los consumidores con poder adquisitivo para PCs, impresoras y periféricos. El movimiento responde a las crecientes presiones financieras y a la demanda de opciones de pago flexibles. El nuevo programa de financiamiento de HP incluye tarjetas de crédito de marca privada, opciones de compra ahora y pagar después, acceso a crédito no prime y acuerdos de arrendamiento con opción a compra. La empresa planea expandir estas opciones a otros mercados en el futuro.
HP Inc. (NYSE: HPQ)는 HP.com에서 구매한 제품에 대한 새로운 종합 소비자 금융 옵션을 발표했습니다. ChargeAfter, Bread Financial, Concora Credit 및 Koalafi와 제휴하여 HP는 이제 대부분의 미국 소비자에게 모든 신용 등급에 걸쳐 금융 지원을 제공합니다. 옵션에는 자격이 있는 구매자를 위한 프로모션 금융 및 신용 필요 없는 임대 소유 옵션이 포함됩니다.
이 이니셔티브는 소비자에게 PC, 프린터 및 주변 기기를 구매할 수 있는 힘을 주는 것을 목표로 합니다. 이는 증가하는 재정적 압박과 유연한 지불 옵션에 대한 소비자 수요에 응답하는 조치입니다. HP의 새로운 금융 프로그램에는 프라이빗 라벨 신용 카드, 지금 구매하고 나중에 지불하는 옵션, 비우량 신용 접근 및 임대 소유 계약이 포함됩니다. 이 회사는 향후 다른 시장으로 이 옵션을 확장할 계획입니다.
HP Inc. (NYSE: HPQ) a annoncé de nouvelles options de financement complètes pour les consommateurs américains pour les produits achetés sur HP.com. En s'associant à ChargeAfter, Bread Financial, Concora Credit et Koalafi, HP propose désormais des financements à quasiment tous les consommateurs américains dans toutes les catégories de crédit. Les options incluent financement promotionnel pour les acheteurs qualifiés et bail avec option d'achat sans besoin de crédit.
Cette initiative vise à donner aux consommateurs un pouvoir d'achat pour les PC, les imprimantes et les périphériques. Cette décision répond à une pression financière accrue et à la demande des consommateurs pour des options de paiement flexibles. Le nouveau programme de financement d'HP comprend cartes de crédit de marque propre, options d'achat maintenant et de paiement plus tard, accès au crédit non-prime et arrangements de leasing avec option d'achat. L'entreprise prévoit d'élargir ces options à d'autres marchés à l'avenir.
HP Inc. (NYSE: HPQ) hat neue umfassende Finanzierungsoptionen für Verbraucher in den USA angekündigt, die Produkte auf HP.com kaufen. Durch die Partnerschaft mit ChargeAfter, Bread Financial, Concora Credit und Koalafi bietet HP jetzt Finanzierungen für fast alle US-Verbraucher in allen Kreditkategorien an. Zu den Optionen gehören aktuelle Finanzierungen für qualifizierte Käufer und Leasing mit Kaufoption ohne Kreditbedarf.
Diese Initiative zielt darauf ab, den Verbrauchern mehr Kaufkraft für PCs, Drucker und Peripheriegeräte zu geben. Der Schritt kommt als Reaktion auf zunehmenden finanziellen Druck und die Nachfrage der Verbraucher nach flexiblen Zahlungsoptionen. Das neue Finanzierungsprogramm von HP umfasst Private Label Kreditkarten, Jetzt kaufen und später bezahlen Optionen, Zugang zu nicht-prime Kredit und Leasingverträge mit Kaufoption. Das Unternehmen plant, diese Optionen in Zukunft auf andere Märkte auszudehnen.
- Expanded financing options potentially increase HP's customer base and sales
- Partnership with multiple financial providers offers flexibility across credit tiers
- Lease-to-own option with no credit needed may attract new customers
- Planned expansion to other markets indicates growth potential
- Increased financial risk due to offering credit to non-prime consumers
- Potential for higher default rates with expanded financing options
- Delayed implementation of some financing options (e.g., buy now, pay later in 2025)
Insights
HP's expansion of financing options for consumers is a strategic move with potentially significant implications for the company's sales and market share. By partnering with ChargeAfter and three financial providers, HP is addressing a important market need, especially given the current economic climate.
The initiative targets a wide range of consumers, from those with prime credit to non-prime and even those needing lease-to-own options. This inclusive approach could substantially expand HP's customer base and drive sales growth. The timing is particularly apt, considering that
From a financial perspective, this move could lead to:
- Increased sales volume, particularly in higher-margin products
- Improved customer acquisition and retention rates
- Potential for higher average transaction values
However, investors should also consider potential risks, such as increased exposure to consumer credit risk and the need for effective management of these new financial partnerships. The success of this initiative will largely depend on HP's ability to integrate these financing options seamlessly and market them effectively to consumers.
Overall, this development positions HP more competitively in the consumer technology market, potentially driving both top-line growth and market share gains in the medium to long term.
HP's new financing strategy is a calculated response to shifting consumer behavior and economic pressures. With inflation rates high and disposable income , flexible payment options have become a key differentiator in the tech retail space.
The company's approach is noteworthy for its comprehensiveness. By offering options across the credit spectrum, HP is positioning itself to capture a larger share of the market. This is particularly significant given that approximately half of financing applications are typically declined in traditional single-provider models.
The partnership with ChargeAfter is a smart move, leveraging technology to match consumers with suitable financing providers. This could significantly reduce friction in the purchasing process, potentially leading to:
- Higher conversion rates on HP.com
- Increased customer satisfaction and loyalty
- A competitive edge over rivals with less flexible financing options
The phased rollout of different financing options throughout 2024 and into 2025 suggests a thoughtful, iterative approach. This allows HP to fine-tune its offerings based on initial results and consumer feedback.
If successful, this initiative could serve as a model for other tech retailers, potentially reshaping how consumers finance technology purchases. Investors should monitor key metrics like online sales growth, average order value and customer acquisition costs to gauge the impact of these new financing options.
HP's expansion of financing options represents a significant shift in the company's approach to consumer sales, potentially disrupting the traditional PC and printer retail model. By democratizing access to technology across credit tiers, HP is addressing a critical barrier to purchase for many consumers.
This move aligns with broader industry trends towards more flexible and inclusive purchasing options. It's particularly noteworthy that HP is implementing this strategy directly through HP.com, which could:
- Strengthen HP's direct-to-consumer channel
- Reduce dependence on third-party retailers
- Improve margins by cutting out middlemen
The integration of ChargeAfter's technology is a key enabler, allowing HP to offer a multi-lender platform. This approach is more sophisticated than traditional single-lender models and could set a new standard in the industry.
From a competitive standpoint, this initiative could pressure other PC and printer manufacturers to develop similar offerings. It may also impact traditional electronics retailers, who could lose market share if they can't match HP's financing flexibility.
Looking ahead, the success of this program could influence HP's product strategy. With more consumers able to afford higher-end devices, we might see a shift towards premium product lines. Additionally, the data gathered from these financing transactions could provide valuable insights for future product development and marketing strategies.
Investors should watch for potential impacts on HP's average selling prices, product mix and direct sales channel growth as indicators of this strategy's success.
Nearly every U.S. consumer¹ now eligible for financing their favorite HP products on HP.com
News Highlights:
- Empowers U.S. consumers with purchasing power to acquire technology needed to work, live and play
- Offers financing options for various plan terms to qualified buyers or lease-to-own with no credit needed
- Positions HP as tech leader with consumer financing options for PCs, printers and peripherals
PALO ALTO, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- Today HP Inc. (NYSE: HPQ) announced new, comprehensive U.S. consumer financing options for HP products purchased on HP.com2. By leveraging ChargeAfter’s technology and collaborating with three leading financial providers – Bread Financial™, Concora Credit and Koalafi – HP can now offer nearly every U.S. consumer a financing option when they shop for personal computers (PCs), printers or peripherals on HP.com. Finance options include promotional financing to qualified buyers , or lease-to-own options with no credit needed. Visit HP Financing for more information and details.
With many consumers feeling the increased pressure of high inflation rates, maxed credit cards and limited disposable income, offering consumers more choice in financing has become increasingly important. In fact, 91 percent of electronics shoppers say it is somewhat to very important that their favorite retailer accepts or offers their preferred type of financing3. With these collaborations, HP can now deliver more options to customers across the credit spectrum.
“HP believes that everyone has the right to access the technology that powers our world,” said Deborah Baker, VP, Head of Global Payment Solutions at HP. “We have teamed up with leading financial service providers to help empower the creators, the inventors, and the geniuses of tomorrow. Our new financing options give almost any US customer the financing power to purchase the technology they need to work, learn and play.”
Broader Access to Financing Options with ChargeAfter
Technology has fundamentally changed retail, giving customers more personalization and choice. However, financing at the point of sale is still limited4 and approximately half of applications are still declined5. The problem? Most merchants only integrate with one or two providers, leaving declined customers with no other choices.
With ChargeAfter’s embedded lending platform, HP.com U.S. consumers can now access personalized financing choices from Bread Financial, Concora Credit and Koalafi. By providing some information on HP.com, nearly all U.S. customers are then matched with a suitable financing provider for their specific needs.
“We are excited to support HP's ongoing commitment to delivering exceptional point-of-sale financing that meets the evolving requirements of their customers and makes cutting-edge technology accessible to all,” said Meidad Sharon, CEO and Founder of ChargeAfter. “This collaboration showcases ChargeAfter’s role as a pivotal partner in revolutionizing point-of-sale financing for major retailers. We look forward to continuing our journey with HP, driving innovation and customer satisfaction together.”
Private Label Credit Card and Buy Now, Pay Later
Bread Financial will initially offer a private label credit card and buy now, pay later options in 2025. Customers will first prequalify with Bread Financial on HP.com for all financing options with minimal customer data required.
“As a leader in promotional financing in the consumer technology vertical, Bread Financial is proud to extend our capabilities and seamlessly offer a tailored payments experience to HP’s customers,” said Val Greer, Executive Vice President and Chief Commercial Officer, Bread Financial. “We look forward to helping HP drive sales and empower their consumers with the right financing options for their specific needs.”
Non-Prime Access to Credit
Concora Credit can help HP non-prime consumers gain access to credit. With non-prime credit cards, customers can spread their payments over time to meet their budget needs.
“At Concora Credit, we are focused on helping non-prime consumers do more with credit and are excited to work with HP to help their qualified customers gain access to leading technology,” said Bruce Weinstein, President and CEO of Concora Credit Inc.
Lease-to-Own
Koalafi offers convenient and transparent lease-to-own financing to consumers who may not qualify for traditional loans, ensuring more HP customers can get the technology they need, while enjoying the benefits of flexible payment options. With a lease, customers can make fixed payment amounts over a maximum of 12 or 24 months and have the flexibility of paying off their lease early to lower financing costs.
“The HP team shares our passion for delivering exceptional experiences to every customer, regardless of where they are on their financial journey,” said Boomer Muth, CEO of Koalafi. “HP’s technology has the power to positively transform lives and ignite joy, and we’re thrilled to help more consumers seamlessly access HP products.”
Availability
HP’s new financing options from Bread Financial (private label credit card) and Koalafi (lease-to-own) are now available to HP.com customers in the United States. Financing options from Concora Credit are expected to be added in August 2024 and buy now, pay later options from Bread Financial are expected in early 2025. HP plans to expand to other HP.com stores in other markets in the future.
About HP
HP Inc. (NYSE: HPQ) is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming, and more. For more information, please visit: http://www.hp.com.
1 Excludes U.S. consumers with a history of fraud and/or those who are unable to verify their identity. Other exclusions may apply.
2 Excludes gift cards and subscriptions.
3 Sales Finance Study, Bread Financial, September 2023
4 ChargeAfter-commissioned research with Global Surveyz 100 executive retail decision-makers in the US, December 2022
5 Data extracted from ChargeAfter platform, January to May 2024.
FAQ
What new financing options has HP (HPQ) introduced for U.S. consumers?
Which financial providers is HP (HPQ) partnering with for its new consumer financing program?
When will HP (HPQ) implement the buy now, pay later option for U.S. consumers?
What products are eligible for HP's (HPQ) new financing options?
