Flexible Alternative Payment Options For Budget Conscious Customers

As South Africa continues to recover from the economic impact of Covid-19, the emergence of alternative payment methods, and more specifically new customer credit options will play a key role in boosting merchant sales and growing loyal customer bases.

The recent Mastercard New Payments Index study shows that adoption of new payment technologies is rising and 95% of South African customers will consider using at least one emerging payment method over the next year.

Customers, particularly millennials, are increasingly wary of accruing additional debt through high interest credit cards and are looking for simple, affordable, and flexible payment options that enable them to pay when and how they prefer to. As this demand for greater choice and flexibility grows, retailers are expected to adapt by providing multiple ways to shop and pay to remain competitive.


Emerging Customer Credit Options


Buy Now Pay Later (BNPL) – is one of the hottest global trends in e-commerce at the moment and gaining popularity with brick-and-mortar retailers. BNPL empowers retailers to provide their customers with a simple and flexible way to purchase goods and services immediately but make interest-free repayments in instalments over a specified period of time.


Purpose Based Lending (PBL) - or In-Store Finance is a real- time in-store and online lending product that enables customers to finance goods and services over either a short or long-term basis. As it is flexible, it helps when making higher value purchases or having to finance costly services.


General Credit – this is a convenient once-off application credit facility that allows customers to shop in-store or online with participating merchants. One single monthly payment is required for all credit purchases, with a revolving credit limit enabling the customer to spend whatever is repaid.


Lay-By or Purpose Based Savings (PBS) – is an interest free payment service allowing customers to save and pay for goods over time. The customer pays a deposit on the goods, which are then reserved and held by the merchant. Weekly / monthly instalments are made by the customer who then receives the goods once the full amount has been paid.


Subscription Agreement - is where a customer agrees to pay a subscription amount for an agreed subscription period to a service provider for the use of goods or services.


Enabling these alternative payment options empowers merchants to provide their customers with the flexibility to pay overtime, which ultimately fosters customer loyalty, increases conversions, and leads to a better customer experience.

Innervation has partnered with several strategic alternative payment providers such as TymeBank, SwitchPay, Mobicred and Ozow, to enable merchants, through a single integration to POS, to seamlessly introduce additional payment options utilising mobile QR technology. The solution also supports Apple Pay, Samsung Pay and Garmin Pay through the existing contactless card processing.


Contact our SALES TEAM for more information on these Innervation enabled credit options.