Traditional credit options leave many consumers behind, especially those without prime scores. For retailers, that means missed revenue and missed opportunities to build lasting relationships with loyal, high-intent shoppers.
Millions of consumers want to buy, but they are blocked by rigid credit requirements. The reality is that 71% of Americans do not have a prime credit score.
Many of these shoppers are navigating rising costs, stagnant wages, and everyday financial demands. In fact, 70% of Americans are considered financially vulnerable or coping. Even consumers with strong incomes or good credit often hesitate to tie up cash or max out cards for big-ticket essentials. Over 50% say their spending exceeds their income, and 56% don’t have enough savings to cover three months of expenses.
These customers aren’t walking away because they don’t want to buy. They’re walking away because they lack a flexible, accessible way to obtain the goods they need. Especially for high-ticket essentials like furniture, appliances, electronics, and mattresses. The need is there. What’s missing is the access.
Flexible alternatives like lease-to-own (LTO) are no longer a nice to have. They are becoming essential for meeting modern consumers where they are.
So, who is choosing LTO today? Likely more people than you think, including:
- The first-job professional:
A young adult with steady income but little or no credit history who needs to furnish an apartment.
- The family recovering from financial disruption:
After medical bills or job loss, their credit score dipped, but their need for a new refrigerator, tires, or laptop continues.
- The financially savvy household:
These shoppers may have good credit, but they’re intentional about preserving savings and avoiding interest charges. Lease-to-own lets them spread out payments in a budget-friendly way. And as prices rise, a slightly higher weekly payment feels more manageable than a large upfront cost.
These are not fringe shoppers, they are the mainstream. When retailers meet them with flexible, transparent options, they respond.
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- $75K average household income |
When these customers find solutions that work, they stay loyal and Katapult’s repeat customer rate showcases their affinity for the Katapult LTO1. In the first quarter of 2025, ~57% of Katapult’s lease originations came from returning customers.
Retailers who embrace lease-to-own unlock powerful benefits:
- Higher conversion rates by capturing shoppers who would otherwise walk away
- Incremental sales closing the gap between intent and purchase
- No additional risk since Katapult assumes the customer risk, not the merchant
- Built-in loyalty by offering flexible, transparent payment options that build trust
- Easy integration options including direct, waterfall or through Katapult Pay®
In today's economy, flexibility is not optional. It is a competitive advantage. The next era of retail growth is not just about courting prime borrowers, it is about meeting all customers where they are financially.
If you are a retailer interested in directly integrating Katapult’s LTO solution to boost your business and customer base, please reach out to learn more.
1 Quarterly repeat customer rate is defined as the percentage of in-quarter originations from existing customers, and annual repeat customer rate is defined as the percentage of in-year originations from existing customers.