Future of Payments in South Africa
22 June 2021
A new payment model is disrupting the traditional credit market globally and in South Africa. Buy now, pay later (BNPL) is a consumer orientated model which ultimately helps consumers make better spending decisions. However, it also has massive benefits for businesses by reviving suffering industries as consumers feel more comfortable paying for products and services they would otherwise not feel comfortable paying.
Traditional credit-card payments is a system that desperately needs innovation as more and more consumers are opting out of interest heavy purchases. This is pushing local businesses to find solutions to attract and retain customers. Which is why businesses in South Africa are opting into the BNPL payment model. It is a model that attracts consumers who would otherwise not buy a product or service, by providing them with a more cost-effective solution to pay off their purchase, interest-free over 3 months.
BNPL is a growing payment trend amongst shoppers in South Africa. Largely due to the pandemic, there is a strong aversion to debt that is developing within South Africa. The challenging economic climate has increased consumer caution around taking on new debt, especially when it comes to retail. This is forcing South Africans to seek solutions to getting what they need now and only paying for it later, without incurring high interest fees associated with credit cards and loans.
As the pandemic continues to reshape customers’ payments expectations, BNPL is expected to play a vital role, offering a flexible alternative to cash-strapped consumers together with the freedom to choose how they want to pay at checkout.
Finclusion, a company with proven execution in financial services and technology, is launching the newest BNPL offering, Click2Pay. Click2Pay will allow consumers to purchase the products they want and repay interest free instalments over 3 months. All the consumer has to do is select the BNPL payment option from Click2Pay and complete a straightforward, paperless, application. They receive an instant decision. The decision is made using their credit vetting policy and credit scoring AI.
C2P is setting out to change the way people shop and there are a number of factors that sets them apart within the South African BNPL market. Firstly, a paperless application process which saves you precious time since you don’t have to waste it on looking for documents. They also have African experience which helps them understand the South African market in which it operates. Additionally, C2P has market leading credit decision making that makes use of innovative AI algorithms it has developed. Most importantly it is a simple and private application process, which asks permission before accessing your information and does not share that information with anyone else. With more than 30million online transactions in 2019 and 2020, the time is rife for payment options that cater to a world altered by the pandemic. The only way for businesses to survive is to adapt along with its customers. Click2Pay is on the cutting edge of these developments and making the world of BNPL much more exciting.
Follow Click2Pay on social media to stay up to date on all new developments.
Instagram: @click.2.pay Facebook: Facebook.com/Click2PayZA LinkedIn: linkedin.com/company/click2payza