Press Release: Retailers must lead the campaign for consumer credit ‘e-signature’ implementation

able2buy, the UK’s leading provider of retail finance facilities, can now provide new ‘e-signature’ as part of its technology that it believes will transform the process of confirming consumer credit agreements online.

However, for the technology to be implemented, e-signature must receive the support of the financial services sector and able2buy is now calling on the retail industry to help persuade major lenders of its benefits.

The e-signature technology, which can be rapidly and effectively integrated into able2buy’s multi-channel credit finance offer, would enable customers to quickly get a credit decision and pay online safely and securely without having to complete a signed paper-based credit agreement, much like a credit card transaction.

At the point of sale, a customer is asked a series of questions, including those about their personal finance accounts via Equifax’s eIDVerifyer system, which ensures that the person is who they claim to be.  

Though the technology is available and retailers recognise the enormous sales potential that e-signature could unlock, the ‘leap of faith’ required by the lending industry appears to remain as elusive as ever, much to the frustration of able2buy director of sales, Richard Castello:

“With the average monthly value of internet retail sales around £4.6 billion, the internet accounts for over 3.5% of total retail sales.  But whilst entering credit card details online has now become second nature to most consumers, another seamless credit process, involving e-signature, struggles to find a foothold in the retail sector.

“Given the current state of the financial services sector, lender resistance to
e-signature and its perceived risk exposure is perhaps not unexpected, but we believe retailers could certainly be doing much more to campaign for its introduction,” he said.

Castello’s strong argument that e-signature would deliver much needed impetus into a difficult retail market, has also received the backing of one leading e-commerce retailer.  Steve Caunce is finance director at DRL, the largest independent retailer of appliances on the web and a business that also operates appliance e-commerce sites for several other leading retailers.

“E-signature would ensure a truly seamless consumer credit agreement and avoid the paperwork trail that at best delays and at worst prevents the current completion of too many consumer credit transactions,” he said.

“At present customers have to print off, sign and return a paper copy of the credit agreement which, as well as creating a major stockholding problem because order despatch is put on hold, means up to 30% of all sales are potentially lost because of unreturned paperwork.

“We chase customers to return their agreement print-offs for up to 28 days, after which we’ll abandon the transaction.  The administration cost of customer chasing, the stockholding issues mentioned above and the total value of abandoned applications can all add up to a huge loss of business.

“E-signature would offer ‘instant finance’ at the point of purchase and enable consumer credit providers such as able2buy to start competing on a level playing field with credit card companies.  Moreover, it would instigate ‘instant spend’ amongst consumers, driving up retail sales, boosting turnover and increasing profit.  With that in mind, why aren’t retailers stepping up the pressure on lenders to accept the new technology?” asks Caunce.

                                                            Ends




Note to Editors:
able2buy, based in Salford, is a leading provider of consumer credit facilities, supplying thousands of customers shopping online as well as hundreds of high street retailers.

For further information contact:

Alex Wood, PR Account Manager alex@stanatwork.com 0161 975 6100