We’re excited to announce that we launched “Lease to Own” as a new tag for our “Recurring Expenditures” endpoint! Lease to Own is a service where merchants lease their goods to customers in exchange for recurring payments.
Some Key Findings
- We observed 4.35% month-over-month growth of lease to own transactions over the past year
- Around 7% of the users in our database use lease-to-own products
- Average lease to own transaction dollar amount: $79.47
- The most common Lease to Own companies:
- Progressive Leasing (29.30% of lease to own Transactions)
- Rent-A-Center (20.20% of lease to own Transactions)
- Flex Shopper (13.07% of lease to own Transactions)
Why this matters
- Consumers who choose lease to own options typically have little or no credit history, low credit scores, and/or are living paycheck to paycheck
- The average term duration is about 7 months – which is unique from other types of lending products
- If the consumer can’t pay off the lease fairly quickly, they oftentimes are subjected to spending significantly more for the item than the actual cost of the item
Upcoming related tags include “Rent to Own and “Debt Collection”.
Documentation
You can find the documentation here – https://docs.pave.dev/insights/recurring_expenditures
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