Retailers are navigating a checkout environment shaped by persistent macroeconomic pressure. Inflation, interest rates, housing affordability, and health care costs continue to influence where and how consumers shop and whether they complete a purchase at all.
New research from PROG Holdings sheds light on how below prime consumers are responding to these pressures and what it means for retailers evaluating flexible payment options like lease-to-own and buy-now, pay-later. The findings challenge common assumptions about this audience and reinforce that flexible payment options are becoming a critical part of the modern retail experience.
Hardworking Shoppers Experience Financial Concerns
Below prime consumers face the same challenges as many low-income households. Specifically, despite 61% being employed full-time, 80% report concerns about their financial outlook.
This disconnect between employment and financial security is an important context clue for retailers. It explains why even motivated, hardworking consumers may hesitate at checkout: they want the product, but cash flow constraints may make an upfront payment difficult.
This is especially true for higher ticket purchases or unexpected needs. When faced with immediate expenses, consumers are making careful tradeoffs. The data suggests that without payment flexibility, many may delay, downgrade, or abandon purchases altogether.
Flexible Payments Influence Conversion and Confidence
For below prime consumers, flexible payment options can meaningfully shift purchasing behavior, as:
- 88% say flexible payments are important when making purchases of $500 or more
- 86% report they’re more likely to complete a purchase when those options are offered
- 80% say they’re willing to spend more when flexibility is available
These insights inform retailers on conversion and average order value, as flexible payments change the way consumers responsibly evaluate affordability at checkout. Just as importantly, the consumer confidence created matters. Sixty-five percent of consumers say flexible payments create positive feelings such as reassurance or relief, which can reduce friction and help them move forward with purchases they need.
A Trust Building Moment at Checkout
About 60% of below prime consumers report using a flexible payment plan in the past year, frequently to manage unavoidable expenses such as home or auto repairs. This behavior reflects a broader financial reality rather than irresponsible spending.
For retailers, offering flexible payment options can be a signal of understanding. It shows all consumers that the business recognizes challenges that can be presented in today’s financial environment and is willing to meet shoppers where they are.
In a setting where trust influences loyalty, checkout flexibility can reinforce a retailer’s role as a partner, not just a point of sale.
What This Means for Retailers
As retailers evaluate payment strategies, the question is no longer whether flexible payment options belong in the checkout experience, but how effectively they support both customer needs and business goals. Specifically, flexible payment options are helping:
- Reduce cart abandonment for higher ticket items
- Improve conversion among underserved but motivated shoppers
- Increase confidence and trust at the point of purchase
- Support higher order values without pushing consumers beyond their means
In a competitive retail landscape, these advantages can make a measurable difference.
Retailers serving a broad range of consumers, including below prime shoppers, should consider offering flexible payment options as a way to align customer service and inclusiveness with performance, supporting consumers while strengthening checkout outcomes. That’s where partners like Progressive Leasing can play a role, helping retailers offer transparent, flexible solutions that meet shoppers where they are without adding friction to the buying journey.
When consumers feel understood, they’re more likely to move forward with purchases and become loyal, repeat shoppers.
Discover What New Below Prime Consumer Data Means for Shoppers
New research from PROG Holdings, the parent company of Progressive Leasing, Four Technologies, and MoneyApp, confirms what many below prime consumers already know firsthand: being employed doesn't automatically mean being financially secure.