Local fintech launches buy now pay later interest-free feature

Johannesburg-based fintech startup Payflex has launched the buy now pay later for local shoppers in South Africa. Local consumers will be able to purchase items from over 500 well-known stores such as Cotton-on, Superbalist, and more. 

Payflex launches buy now pay later feature in SA

Paul Behrmann, CEO, and founder of Payflex explains that utilising the fintech’s innovative platform to purchase items is interest-free. 

“Traditionally paying via instalments in South Africa has been associated with high-interest charges, as you are penalised for paying for the item over time. But by using Payflex, every purchase you make is interest-free. You’ll know exactly when each of the four interest-free payments are due and there are no hidden costs. It puts you in control of your finances.” 

The buy now pay later feature is interest-free for six weeks and payments are split over four interest-free instalments.  

How does it work?

An example provided by the fintech on how the buy now pay later scheme works. For example, if a consumer purchases a watch for R 1000, the first payment upfront will be R250 and the three additional payments will be R250 every two weeks for a period of six weeks. 

The platform has been developed to inform users on how and when payments are required, creating a transparent buy now pay later system with consumers. 

“The hassle-free Payflex option allows you to see exactly how and when you will make your payments. Provided you make your scheduled payments on time, you won’t be paying one cent extra in interest or fees for your purchase,” Behrmann explains. 

In addition, new users who sign up on Payflex will receive a R 100 discount coupon to use on their first purchase.

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Featured image: rupixen.com via Unsplash