Why eCommerce brands are turning to lease-to-own

Every checkout tells a story, and not all of them end in a sale. For many eCommerce brands, lack of flexible payment options can be a barrier to conversion. Lease-to-own helps eCommerce brands capture more revenue by giving a potentially missed segment of shoppers a flexible way to pay over time. With this no-credit-needed payment option, you can convert more traffic, reduce cart abandonment, and grow sales with minimal lift.

Here’s why lease-to-own is gaining traction and how it can unlock growth for your brand.

Why lease-to-own is growing

eCommerce brands are looking for new ways to convert shoppers who don’t qualify for BNPL or store cards. Lease-to-own fills that gap, helping you reach more customers and close more sales.

More eCommerce teams are turning to lease-to-own to reach consumers who don’t qualify for BNPL or prime options. The opportunity is big:

• Large non-prime consumer base: Nearly half of U.S. consumers have credit scores below 660. Without inclusive options, many abandon checkout.¹

• Gen Z and Millennial potential: 79% of the U.S. non-prime population are Gen Z or Millennials. Lease-to-own offers them a path to ownership, and you a path to loyalty.

• Market growth: The lease-to-own market is now valued at $45 billion, with provider revenues up 29% since 2020.²

How lease-to-own drives growth for eCommerce merchants

Reach a new customer segment
Lease-to-own opens the door to customers who are typically declined by BNPL and traditional credit-based options. These high-intent shoppers make up a large share of the population, and without accessible payment options, they’re bouncing from your site. Lease-to-own helps you save the sale by giving these shoppers a path to ownership.

Increase conversions without cutting margins
Unlike traditional financing, which often requires merchants to pay a percentage of each financed purchase, lease-to-own providers typically don’t come with transaction fees. The provider manages underwriting, customer service, returns, and collections, helping merchants offer flexible payments while preserving margin. Many merchants see a 10-25% lift in conversion after implementing lease-to-own.

Boost average order value and repeat sales
Customers are often approved for more than they initially plan to spend. At Koalafi, 60% of customers spend less than their approved amount, so they have more for future visits. A strong lease-to-own partner should provide clear reporting on who has remaining approval and how much, so you can promote additional products, encourage repeat purchases, and increase both revenue per customer and overall lifetime value.

Positive brand perception through inclusive options
Lease-to-own reduces negative brand experiences by approving more customers. Some providers, like Koalafi, report payments to major credit bureaus, helping responsible customers build credit and qualify for better future financing. Support your customers’ financial health while strengthening your brand reputation.

Adding lease-to-own is one way eCommerce brands are making checkout more accessible without replacing what’s already working. It helps convert shoppers who fall through the cracks with traditional financing.

If you're exploring how to expand approval coverage, reduce friction, or tap into a new consumer segment, Koalafi offers a no-credit-needed option that’s easy to integrate and built to complement your existing financing options.

Learn more about Koalafi’s eCommerce integrations

¹ “The Consumer Credit Card Market.” Consumer Financial Protection Bureau, 2023​​

² KeyBanc Capital Markets - Hardlines: RTO Direct Opportunity Remains Significant– Deep Dive, Sept 2021​