Any e-commerce platform can add the service to reach out to an underserved segment of potential customers.
The concept of ‘buy now, pay later’ (BNPL) has been around in various forms in the retail sector. However, there is an underserved segment where people whose credit facilities do not qualify for inclusion.
Now, a fintech solution provider has announced a digitalized ‘buy now, pay later’ (BNPL) solution that extends buying limits for this sector in the Asia Pacific region.
Using a bespoke financial profiling algorithm, Pace matches customers with appropriate spending limits that allow them to split their purchases over 3 interest-free installments. Since rolling out its BNPL offering in November 2020, the firm has added over 300 points-of-sale from over 200 merchant partners including Goldheart, OSIM, Sincere Watch, Carousell, Reebonz, and FJ Benjamin.
According to Patsy Loo, Business Director, Goldheart jewellery: “It’s only been 4 weeks, but (the BNPL service) has already proven to be effective in driving solid results both online and across our 16 retail outlets. In fact, since the partnership started, we have reached more customers and with the support of their scalable technology platform, we’re excited to keep that momentum going.”
The vision behind BNPL
According to the firm’s founder Turochas “T” Fuad: “Our long-term goal is to create a broader and more inclusive digital fintech platform that empowers underserved populations. To achieve this, BNPL is the right first step that flexibly and seamlessly extends customers’ buying limits while giving merchants access to financing alternatives and entirely new customers segments.”
With this solution, businesses of all sizes can easily activate and offer BNPL payment options to their customers, including debit card holders. This enables greater reach and higher sales through ‘sustainable spending’.
The firm has raised a seven-figure seed round co-led by Vertex Ventures (a Temasek subsidiary) and Alpha JWC, and the funds will be used to develop the platform and offer progressive services and solutions to consumers and merchants.
As adoption for its ‘buy now, pay later’ (BNPL) solution grows, Pace plans to leverage data insights and unique buying patterns to offer the right fintech solutions to the region’s developing digital banking ecosystem. It aims to reach 5,000 merchant partners by end 2021 through expansion into North Asia and the rest of South-east Asia.