Digital bank TymeBank has partnered with fintech and payments provider Adumo to extend the newly-launched MoreTyme, a buy-now-pay-later (BNPL) service, to small and medium enterprises (SMEs) in SA.
The payment service offers consumers a three-instalment, interest-free payment option at the point of sale, which TymeBank hopes will help increase revenue for the SMEs.
According to Adumo, retailers that offer buy-now-pay-later as a payment option can expect an increase in business.
BNPL is ballooning in other markets, where it has been adopted by younger demographics as a preferred payment method to purchase items ranging from fashion to electronics.
The global BNPL transaction volume is predicted to grow 10 to 15 times in value by 2025, creating opportunities for local players like TymeBank.
Paul Kent, CEO of Adumo, says South African businesses and consumers are hungry for new and convenient payment services. "The past 18 months have seen a transformation in the local payments landscape, with new contactless and cashless payments and alternative credit solutions transforming the retail landscape.
“Our new partnership with TymeBank will now extend the benefits of MoreTyme to SMEs across SA, giving them an exciting new tool for driving greater revenue and footfall at their stores."
According to Kent, BNPL has proven hugely successful in driving sales and increasing the average basket value in other markets.
"Retailers that offer buy-now-pay-later as a payment option can expect a 20%-30% increase in retail conversion rates and a 30%-50% increase in ticket size based on current industry benchmarks, and drive greater footfall to their stores. This is especially significant in light of the challenging operating environment and constrained economy many retailers are currently contending with."
TymeBank and Adumo are piloting the service at select Jam clothing stores.
"Following the success of the pilot project, we will offer MoreTyme to our existing and new retail customers. While BNPL adoption has been driven by millennials in the more developed markets, we expect South Africans from all walks of life to see the benefits of MoreTyme, regardless of age or income group," says Kent.
TymeBank CEO Tauriq Keraan comments: “MoreTyme is the modern way for customers to pay for goods. It is a fully digital experience and provides customers with a smart option for immediately receiving their goods, while spreading their cash flows over a 60-day period through an interest-free facility. We are delighted to be in partnership with Adumo to rapidly expand consumers’ access to MoreTyme.”