For now, customers in Singapore and Malaysia can opt to pay for transactions over three interest-free payments.
Buy Now Pay Later (BNPL) payment options are catching on, and one fashion and lifestyle portal has added this service at checkout in South-east Asia to provide consumers with more choice.
ZALORA customers in Singapore and Malaysia that want to use this feature will need to register for an account with Pace, the payment infrastructure providing the service. At checkout, customers will be directed to the appropriate website to complete the payment.
The transaction value will then be split into three interest-free installments. Additionally, users of the service can receive reward points for future purchases.
Said Kannan Rajaratnam, Regional Director, Payment and Customer Operations, ZALORA: “ZALORA is committed to providing our shoppers more options as the region continues to embrace digital retail for all their fashion and lifestyle needs. Shoppers can shop with ease and peace of mind while having the ability to manage their finances in a transparent and responsible manner.”
Early results from the firm’s Singapore and Malaysia customers show an estimated 30% rise in average spend. The partnership has also seen an increase in customer acquisition for both firms, with about 20% of Pace transactions being made by new ZALORA customers.
According to Turochas “T” Fuad, Founder and CEO, Pace, the partnership ”marks a major milestone and allows us access to a new group of ecommerce shoppers through ZALORA. By offering transparency, control and flexibility, our goal is to offer a more sustainable way of shopping.”
Although instalment-based payments options are not a new concept, BNPL providers are creating a digital, frictionless and smoother payment experience. As a result of increased BNPL use, banks in other markets are evolving their credit card propositions to offer lower minimum repayment sums or a more flexible repayment schedule – right from the get-go.
For some insights on what the future holds for BNPL in the Asia Pacific region, check out this DigiconAsia.net interview with Worldpay, FIS.