The market opportunity in plain English
Smart locks are moving from niche gadget to mainstream security upgrade, and that creates a practical finance opportunity for UK businesses. If you sell, install or specify smart locks, customer finance can make higher-value security products easier to afford without asking buyers to pay everything upfront. That matters in a market that is growing quickly. UK smart lock sales reached around USD 134.5 million in 2024 and are projected to rise to roughly USD 334.0 million by 2030, with strong annual growth. The UK also held 19% of the European smart lock market in 2022, which points to established demand as well as room for further expansion.
Growth is not happening in isolation. New UK construction work increased by £18.16 billion in 2022, according to the Office for National Statistics, with both private and public sector activity rising. More new homes, rental units and commercial premises usually mean more demand for modern access control, especially where buyers want convenience, audit trails, remote entry and better key management.
At the same time, adoption is still relatively early. Eurostat data suggests smart locks have much lower household penetration than more familiar connected devices. That gap matters.
Low penetration can mean higher risk if you guess wrong, but it can also mean strong headroom for well-structured, well-explained finance offers.
For a UK business, the key point is simple: demand appears to be growing, products are becoming more credible, and finance can remove one of the biggest barriers to purchase.
Which businesses are most likely to benefit
This approach is most relevant for UK businesses that already sell into property, security or access control. That includes locksmiths, smart home retailers, security installers, builders, developers, door and window firms, property technology suppliers, letting sector specialists and commercial access control providers. It can also suit merchants or e-commerce businesses selling directly to homeowners, landlords and small firms.
It is especially useful where your customers want a better product but hesitate at the upfront cost. That could be a landlord fitting multiple units, a developer upgrading a specification, or a small office replacing traditional locks with keyless access. If your average order value rises when buyers choose better hardware, installation or maintenance packages, finance may help more customers proceed while still staying within budget.
What offering finance for smart locks actually means
Offering finance for smart locks means giving eligible customers a regulated way to spread the cost of products and, in some cases, installation over time. In practice, many businesses do this through an authorised lender or finance broker rather than lending directly themselves. The customer chooses a product, sees the finance terms, completes an application, undergoes lender checks, and if approved repays in instalments.
For smart locks, this can cover more than just the device. It may include fitting, setup, integration with alarms or smart home systems, and occasionally servicing. This matters because the real customer decision is rarely about a lock alone. It is often about a complete security upgrade.
The product choice also matters. Deadbolt smart locks led UK revenue in 2024, while lever handle smart locks are one of the fastest-growing categories. Bluetooth-enabled models are particularly important because they hold 52% of the global market, helped by lower power use, straightforward smartphone pairing and the ability to work without constant internet connectivity. For some customers, that feels simpler and safer than more complex connected options.
A sensible finance offer should explain all of this in plain English: what is included, total cost, deposit if any, monthly payments, contract length, approval criteria, and what happens if the lock or installation is not suitable for the property.
How to build a finance proposition customers can trust
Start with product selection and compliance before you think about promotion. In January 2025, Sold Secure launched its SS504 specification for residential smart locks. This combines mechanical attack testing with ETSI EN 303 645 cybersecurity standards and helps manufacturers align with UK PSTI Act requirements. For a business offering finance, that is highly relevant. If you are asking a customer to commit to monthly payments, the product should have credible physical and cyber security backing.
Next, choose a finance model that fits your business. Many firms work with a lender or broker so the regulated credit activity sits with specialist providers. You then need a clear customer journey, including pre-contract information, affordability messaging that is fair and not pressurising, and staff training so no one makes misleading claims.
Operationally, it helps to:
- focus first on proven, higher-demand product types such as deadbolts and popular retrofit models
- build installation and aftercare into the quote where appropriate
- separate product benefits from finance benefits so customers understand both
- make compliance, warranty, returns and technical support easy to find
- ensure any marketing about savings, safety or convenience is accurate and evidenced
Trust in the finance journey often matters as much as trust in the lock itself.
Done well, finance becomes part of a transparent buying process rather than a hard-sell add-on.
Why finance can support growth without cutting corners
The main commercial reason is accessibility. Smart locks can solve real problems, but some customers will delay purchase when faced with the upfront cost of hardware, fitting and setup. Finance can make a well-specified solution feel manageable, especially for landlords, developers and small businesses buying several units at once.
There is also a timing advantage. The UK market is growing, construction activity remains an important demand driver, and rental and office use cases are expanding. Forecasts indicate UK smart lock demand could rise at around 9.1% annually through 2036, with growth linked to rental housing and commercial offices. That makes finance particularly relevant where buyers want keyless access management, easier tenant turnover, or better control over staff entry.
The wider market trend also supports confidence. Globally, the smart lock market is expected to grow strongly, from about USD 21.2 billion in 2025 to around USD 70.6 billion by 2035. Europe is seen as a high-potential region, helped by strong digital infrastructure and growing focus on security standards.
For a UK business, the important point is not just that the market is bigger. It is that customers are becoming more comfortable with connected security products, while newer compliance frameworks such as PSTI-related standards help reduce uncertainty. Finance can therefore support growth, provided the offer is fair, the product is suitable, and the customer fully understands the commitment.
The upside and the trade-offs
| Aspect | Potential benefit | Possible drawback |
|---|---|---|
| Customer affordability | Reduces upfront cost and can improve conversion on higher-value products | Monthly payments may discourage some buyers or lead to declined applications |
| Average order value | Customers may choose better locks, professional installation, or bundles | If not explained clearly, customers may focus only on monthly cost rather than total payable |
| Market timing | Supports growth in a rising UK smart lock market | Fast-growing markets can attract weak products or overconfident claims |
| Rental and office use | Helpful for multi-unit purchases and access management upgrades | Commercial needs can be more complex than residential packages allow |
| Product credibility | PSTI-aware and SS504-aligned products can improve trust | Not all products marketed as "smart" have the same security or compliance standard |
| Sales process | Can create a smoother path to purchase | Staff need training to avoid misleading or non-compliant finance conversations |
| Risk management | Working with specialist lenders can reduce regulatory burden | Introducer rules, promotions and customer communications still require care |
| Customer satisfaction | Spreading cost can make upgrades feel achievable | Poor installation or app performance may cause complaints even if finance was arranged properly |
Key risks and checks before you launch
Before promoting finance, check both the lock and the customer journey carefully. Smart locks sit at the intersection of physical security, digital security and consumer credit, so weak points can appear in more than one place. Product quality is the first issue. Ask whether the lock has credible testing for physical attack resistance, what cybersecurity standard it aligns with, how software updates are handled, and whether it is appropriate for the intended door type and property use.
You should also be careful with marketing language. Avoid implying that a smart lock is "fully secure" or that finance is automatically available. Be clear that eligibility depends on lender criteria and that no technology removes all risk. If you target landlords or offices, check whether the product supports the right level of user management, audit trails, battery warnings and fail-safe access.
Other points worth checking include:
- warranty length and what it actually covers
- who is responsible for installation faults
- what happens if internet or app access fails
- battery life and backup entry methods
- returns, cancellations and complaint handling
- whether your staff understand the difference between product explanation and regulated financial advice
A final caution: low smart lock penetration in Europe suggests room to grow, but it also means many buyers will need education. If you rush that step, complaints can follow. Clear explanations usually protect both the customer and your business.
Other ways to help customers pay
Buy now, pay later through a third party
Can feel simple at checkout, but it may suit lower-value orders better than large multi-unit or installed projects.Merchant-funded interest-free credit
Useful for promotions where you want to remove cost barriers, though the subsidy affects your margin.Staged payments for installation projects
Often practical for developers or commercial buyers, especially where work happens over phases.Leasing or subscription-style access packages
Can work for offices or managed rental portfolios where hardware, software and maintenance are bundled.Trade credit for business customers
May suit repeat commercial buyers, but it is not the same as regulated consumer finance and needs robust credit control.Deposit plus balance on completion
A simpler option where full finance is not suitable, though it offers less flexibility for cost-sensitive customers.
Questions businesses often ask
Yes, the market data points to meaningful growth. UK smart lock sales are projected to rise strongly through 2030, and adoption is also being supported by rental, office and new-build demand.
Which smart lock types are easiest to position with finance?
Deadbolt smart locks currently lead UK revenue, making them a practical starting point. Lever handle products are growing quickly too, particularly where retrofit convenience matters.
Why are Bluetooth smart locks mentioned so often?
Bluetooth models hold 52% of the global market. They are popular because they tend to use less power, pair easily with phones and can work in proximity without relying on constant internet access.
Does product compliance really matter for finance sales?
Very much so. Customers taking finance expect reliability and trustworthiness. The 2025 Sold Secure SS504 specification is relevant because it brings together mechanical testing and cybersecurity standards aligned with UK PSTI expectations.
Should a business lend money directly?
Many businesses prefer to work with an authorised lender or broker. That can be more practical and can reduce the burden of handling regulated credit activity in-house.
Can finance work for landlords and offices, not just homeowners?
Yes. In fact, rental housing and commercial offices are among the notable UK growth areas, especially where key management, staff access and tenant turnover are important.
What is the biggest mistake to avoid?
Treating finance as a sales script instead of a suitability process. Customers need clear information about the product, the total cost and the credit commitment before they decide.
Where Switcha fits in
Switcha is a UK price comparison website, so our role is to help businesses make more informed decisions when they are exploring options, costs and providers. If you are considering offering finance for smart locks, comparing providers, fees, product types and customer terms can save time and reduce the risk of choosing a solution that does not fit your market.
We believe financial decisions work best when they are transparent. That means looking beyond headline rates and asking practical questions about compliance, customer experience, support and total value. A careful comparison process can help you narrow down options with more confidence and less guesswork.
Important information to keep in mind
This guide is for general information only and is not legal, regulatory or financial advice. Rules around consumer credit, promotions and introducer activity can depend on your business model and the provider you work with. Smart lock suitability also varies by property, installation method and cybersecurity standard. Always check current UK regulatory requirements, product specifications and lender terms before launching or promoting any finance offer. If needed, seek advice from a qualified compliance, legal or financial professional.
