Fintech startup Payflex has announced that its part-payment platform grew from a shopper base of 2 000 to 85 000 in 12 months, and its customer base soared from 70 merchants in 2019 to over 750 active stores this year.
The company also said that online merchants in SA which offer a buy now pay later (BNPL) payment option are achieving up to 30 percent higher average order values from their customers, larger purchases, and significant revenue increases through more sales conversions.
Payflex was launched to offer consumers the opportunity to shop now and pay later, interest-free.
Payflex’s BNPL model allows customers to shop at over 700 well-known online stores. Payments were split over four interest-free instalments. The assessment is done in seconds, and customers only pay a fee if they miss a scheduled instalment. Payflex accepts any Visa, Mastercard, or American Express cards (debit, credit, or cheque).
Payflex head of growth Jarred Deacon said the company has seen over 12 percent month-on-month rises in new merchants on its platform this year. “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 the next business day, which increases cash flow and lowers fraud and chargeback risks. It’s a no-brainer,” Deacon explained.
According to the company, there were an estimated two million online shoppers in South Africa and Payflex has over 80 000 signed up on its platform. “BNPL payment options don’t affect the disposable income of customers, and free up cash flow over six weeks.”
The company said merchants that offered the Payflex BNPL option pay no set-up fees. Low transaction fees on successful orders are tailored per business after consultation with the Payflex onboarding team.
“Payflex’s online digital mall allows customers to search different categories and shops that allow them to buy now and pay later. In Australia, BNPL providers are second only to Google as lead generators for their merchant partners,” it said.
“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,” said Deacon.
KaryKase e-commerce director Charlton Maseko said increased traffic attributed to the Payflex online store directory, the company has made Payflex its exclusive payment method for card payment processing.
4Akid.co.za, owner Ally Cohen said that Payflex is a complete game-changer for e-commerce stores. “Cart order size is higher, as customers know they can pay off the order.”
BUSINESS REPORT ONLINE