Four Psychological Barriers That Kill Conversion

Four Psychological Barriers That Kill Conversion

Most retailers assume customers drop out during the lender’s application process.
But the biggest conversion killers actually happen before shoppers ever reach it.

Here are four psychological barriers stopping customers from even starting a finance application and how FinMatch helps reduce them.

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1. Fear of Being Declined

Many shoppers assume they won’t be approved, so they don’t try.

This fear stops applications long before the lender ever sees them. Especially for customers with thin credit files or past

credit issues.

FinMatch helps by:

• Adding lenders with higher approval rates
• Showing monthly cost examples
• Providing clearer expectations early in the customer journey

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2. Confusion about Credit Checks

Customers often don’t understand the difference between a soft and hard search.

Even when a lender uses soft search only, the uncertainty (“Will this affect my score?”) causes drop-off.

FinMatch reduces this by:

• Clearly showing “Soft search - no impact on your credit score”
• Giving customers confidence before they begin the application

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3. Too Much Choice, Not Enough Guidance

Multiple lenders and finance options can overwhelm customers.

Without guidance, customers hesitate but if customers apply to an unsuitable lender and are declined, they're unlikely to try again.

One decline often ends the sale.

FinMatch helps by:

• Explaining each lender’s strengths (e.g., Highest Approval Rate, Lowest Repayment)
• Helping merchants pick lenders suited to their customers' credit profiles

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4. Information Overload

At checkout, too much information becomes noise.

Excessive and disorganised APR tables, eligibility notes, and repayment examples can create confusion and friction.

FinMatch improves clarity with:

• Simple finance summary under the price
• Seamless modals that provide detail only when needed

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What Merchants Can Control

While you can’t change lender forms or underwriting. You can control everything that happens before the application begins.

FinMatch helps merchants reduce drop-off with easy-to-understand finance summaries, guidance on choosing the right lender, and FCA-compliant messaging.

Ready to optimise your finance set up?

Contact us today!