Payflex, a buy now pay later provider (BNPL), has gained massive traction in 12 months. The Johannesburg-based fintech startup announced that its part-payment platform grew from a shopper base of 2000 to 85,000 in 12 months, and the number of merchants on its platform grew from 70 in 2019 to 750 this year.
According to Jarred Deacon - head of growth at Payflex, attributes the company's traction to its product offering. "The growth in our business during a pandemic mirrors e-commerce adoption and expansion," Jarred said.
"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, increasing cash flow and lowering fraud and chargeback risks. It's a no-brainer." he added.
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 instalments.
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.
Merchants pay no setup fees when partnering with Payflex and only pay transaction fees on successful orders.
South Africa in focus
GDP: 351.432 compared to Angola's $88.816 billion in 2019
Population: 58,558,267 compared to Angola's 31,825,295 in 2019
GDP per capita: $6,001 compared to Angola's $2,790 in 2019