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Johannesburg-based fintech startup Payflex, a buy now pay later provider (BNPL), has announced that its part-payment platform grew from a shopper base of 2000 to 85 000 in a mere 12 months. In addition, its customer base grew from 70 merchants in 2019 to 750 this year.
Payflex has grown its user base by 4000% in 12 months
Jarred Deacon, head of growth at Payflex attributes the fintech’s successful growth to its product offering.
“The growth in our business, during a pandemic, mirrors e-commerce adoption and expansion. With a BNPL payment option, customers tend to convert quicker and since they only pay for a quarter of their purchase right away, they tend to buy more and load their shopping cart. Merchants are settled in full for all purchases next business day, which increases cash flow and lowers fraud and chargeback risks. It’s a no-brainer.”
Payflex buy now pay later feature
The fintech’s buy no pay later model enables customers to shop at over 700 well-known online stores such as Cotton-on, Superbalist, and The Pro Shop. Payments are split over four interest-free installments.
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.
If a customer misses a scheduled payment, a fee will be charged and the fintech has ensured that the process is simple and quick for customers.
According to reports, merchants that offer Payflex as a payment option have reported higher order values of up to 70% and an overall sales increase of up to 30%.
In addition, the purchase rate has increased by 70% for merchants that offer Payflex as a flexible payment option to consumers.
“A leading tech retailer in South Africa which offers Payflex confirmed that Payflex generates the highest number of referral leads, indicating that Payflex is following the global BNPL trends,” adds Deacon.
Merchants pay no setup fees when partnering with Payflex and only pay transaction fees on successful orders.
Merchants are finding that BNPL significantly expands their customer base.
Ally Cohen, owner of 4Akid.co.za, and a client for Payflex explains that the BNPL mechanism offered is a complete game-changer for e-commerce stores.
“Cart order size is higher, as customers know they can pay off the order.”
Featured image: Jarred Deacon, head of growth at Payflex (Supplied)