Monthly Card Payments are the New Credit Financing

 In Payment Card Industry News

Online payment platforms have skyrocketed in popularity recently and some business are moving into a self-financing market by transitioning traditional one-time transactions into monthly payments. From AirBnb rentals to software to furniture, companies are embracing a pay model adapted to a card-based economy.

Many consumers feel a financing burden for a purchase over $500, and even if they have the cash on hand for a sizable transaction, they are reluctant to commit immediate funds to a purchase. As a result, consumers are turning to unique financing arrangements for significant purchases.


Financing has been chipping away at cash-based transactions for years. From auto loans to appliances, promotional financing programs are enticing to consumers looking for immediate access to funds. Online applications have streamlined the process for credit approval and retailers have utilize the access to funds to increase affordability for purchasers. More than 80% of home improvement projects and a record 84.5% of new auto purchases in 2018 included some form of financing, but traditional financing channels for mid-range purchases between $500 and $5,000 are often ignored by lenders. Consumers looking for financing options in this range have often charged a full transaction amount on a credit card and would sometimes use the credit card as a financing vehicle.

Seeing the need for a non-traditional financing approach for these purchases, several retailers and service-providers have adopted a model similar to Software as a Service (SAAS) providers with a monthly recurring payment. Industry-specific financing programs have started offering unsecured loans structurally similar to prepay (layaway) funding and, in some cases, traditional monthly payments for goods or services.


From Airbnb rentals to furniture purchases, recurring monthly payments are generating affordability while avoiding any stigma attached to in-house branded credit card programs from retailers. For select services and products, self-financing and prepayments aren’t ideal – consumables, collaterally-weak products, or hyper-depreciating products like phones or computers. But for items that have some recoverable value or for a prepayment scenario, offering an option for a recurring monthly payment can be a difference maker.

It’s important to limit risk by consulting with your attorney and insurance provider, but the setup for accepting monthly credit card payments is fairly easy. Adding a payment gateway to your website or integrating with a POS system is something we do everyday. And some of the solutions on the market allow for integration into other CRM or sales systems for monitoring and follow-up.

So whether you are trying to help clients afford their next auto repair or patio set purchase, consider a monthly payment solution.

Here are a few options for monthly payment credit card processing or industry-specific microfinancing.
Ascent Pay


Motus Financial, located in Sun Prairie, WI provides Point-of-Sale (POS) technology solutions and credit card processing services. Locally owned and operated Motus Financial provides a complete suite of POS technology services to assist merchants in processing payment from credit cards, debit cards, and checks.  Motus financial can also provide check processing as well as a customized gift card program for your business.

For more information, please contact us at 608-819-8666 or check out our website at and we look forward to assisting you.