Buy now, pay later gains traction in South Africa

The buy now, pay later model has gained momentum in South Africa, with more consumers opting for this convenient payment method. Mark McChlery, Chief Data & Analytics Officer at Pay Just Now, sheds light on the trends and insights in the buy now, pay later space. Pay Just Now offers a buy now, pay later service to consumers, allowing them to make purchases and pay in three interest-free installments. This payment method has become increasingly popular among retail partners, as it provides consumers with the flexibility to receive goods immediately and pay later. The shift towards e-commerce during the pandemic has accelerated the adoption of buy now, pay later services in South Africa. Initially focused on the e-commerce sector, Pay Just Now has expanded its reach to cater to in-store purchases, recognizing the importance of the retail sector in the country's economy. Retailers have embraced digitization to streamline their operations and reduce costs associated with traditional lay-bys. By offering buy now, pay later services, retailers can boost sales without incurring additional administrative expenses. This has led to a significant increase in basket sizes and monthly revenues for top retailers partnering with Pay Just Now. Consumers benefit from the ability to spread payments over three installments without incurring interest or fees, allowing them to purchase higher quality products. Pay Just Now positions itself not as a credit instrument but as a budgeting tool, helping consumers manage their finances effectively. The buy now, pay later model has enabled consumers to access aspirational products without the burden of monthly fees and compounding interest. The key to success lies in consumers' ability to uphold their payment commitments and enjoy products before fully paying for them. Pay Just Now has witnessed a growing demand for a wide range of products, from sneakers and apparel to skincare and home improvement items. The platform's evolution extends to offering products like generators, catering to diverse consumer needs and preferences. While Pay Just Now's offerings cover a vast array of products, the focus remains on aspirational lifestyle goods that resonate with the target market. The platform's revenue model involves charging a fee to retail partners, which is a premium on standard transactional fees. By attracting consumers who prefer the buy now, pay later model, Pay Just Now helps retailers reduce customer acquisition costs and increase basket sizes. The platform assumes all risks associated with the transactions, carefully analyzing data to assess consumer behavior and repayment capabilities. By leveraging advanced algorithms, Pay Just Now mitigates risk and identifies trends in consumer demand, positioning itself as a reliable budgeting utility for South African consumers. The buy now, pay later trend shows no signs of slowing down, as more retailers and consumers recognize the benefits of this flexible payment option.