As mobile wallets and consumer-to-business payments platforms grow in popularity as the preferred payment method among retail shoppers, it seems only natural that merchants should consider digital POS lending or instant financing options as a means to encourage more online purchases.

Indeed, they are. According to a recent survey by payments provider Klarna, about 65% of online U.S. retailers believe providing online financing options through their store is important to driving new and increased sales.

Typically, these financing options are done through third-party fintechs: think Affirm or even Bill Me Later (now called PayPal Credit).

The survey, which was released last week at the Shoptalk event in Las Vegas, also showed that 46% of these retailers believe instant financing would reduce cart abandonment, a major pain-point for online retailers.

On the consumer side, the appeal for instant financing is straight-forward: it’s easy and quick to apply for, getting approved usually takes a few minutes, one doesn’t need to provide a ton of information and neither do they need to have a large amount of money in their banks, plus the interest rates are usually lower than the market average of traditional loans.

And clearly, consumers are asking for this option. Among the consumers surveyed for this report, 75% said they prefer online merchant that offer instant financing to those that don’t, while 39% said they would spend more if given the instant financing option.

Jim Lofgren, CEO of Klarna North America, said in a statement:

Instant financing is clearly recognized by online merchants as a means to attract consumers by providing additional freedom, flexibility and buying power. The speed and simplicity with which consumers can apply and be approved for instant financing is widely believed to convert more sales.

Klarna’s survey was conducted between January 2 and 23, 2018 by Researchscape International and surveyed 263 U.S. online retailers.

See the full report here.