In line with the latest ecommerce trend, online payment gateway PayFast has announced the addition of MoreTyme, a buy now, pay later feature recently launched by digital retail bank TymeBank, as a payment option on their platform. The feature will benefit merchants, who will be paid upfront in full, and customers, who can have their orders fulfilled immediately, and pay off their purchase over three payments, with no interest or fees.
“The pandemic has brought about a paradigm shift in South Africa’s digital payments landscape, and accelerated the buy now, pay later trend among online shoppers. By taking into account the reality of customer spending habits and budgets, our partnership with TymeBank offers an opportunity for merchants to increase their conversion rate, attract new customers and stay competitive,” says Peter Harvey, Managing Director at DPO South Africa, and Director of PayFast.
With the MoreTyme feature, businesses using PayFast as their payment gateway can let customers pay for their purchases, interest free, in three payments over two months. At checkout, shoppers can select the MoreTyme option and scan the QR code with their TymeBank app on their smartphone. Upon purchase, they pay 50% of the item’s price upfront and then pay off the rest to TymeBank, in two equal payments over the next two months.
The buy now, pay later payment method attracts customers who have been looking to buy, but who don’t have the immediate funds; “This online payment option is ideal for younger audiences who are comfortable with shopping digitally, but who don’t yet have the earning power and credit history to qualify for a credit card. It also appeals to millennials who are looking to replace credit cards to avoid paying high-interest rates and fees,” says Harvey.
For businesses, buy now, pay later offers an opportunity to build strong customer relationships; “With the ecommerce boom, consumers have become accustomed to convenient, personalised shopping experiences – including how and when they pay. Part of gaining consumer trust is allowing for flexibility and giving customers the power to choose an option that works best for them,” says Tauriq Keraan, CEO at TymeBank.
The buy now, pay later market is set to grow at a steady pace over the next few years, as consumer trust in the security of online payments grows; “Our data shows the average transaction of a buy now, pay later customer is significantly higher in value than an immediate payment. This highlights consumer appetite for this payment structure, available with our MoreTyme product. Businesses need to anticipate consumer demand, and ensure that they can offer a seamless payment experience,” says Keraan.