Payflex ,a fintech startup based in Johannesburg has secured an undisclosed amount of funding from Australian-listed multinational Zip Co Limited, a buy now pay later player with a market cup of over R55 billion.
Zip Co Limited has invested and offering its support to Payflex with a belief that the local fintech innovation is going to suit the market opportunity in South Africa.
Normally, high interest charges are incurred when consumers use the traditional installment payment method. Consumers are also charged with penalties when they make overtime payments. In order to eradicate all these problems, Payflex offers a platform which is convenient and pocket friendly for all users.
The buy now pay later feature that Payflex provides is interest free for six weeks. The payments are split over four interest free installments which will enable the smart spenders avoid getting into debts and penalties made when one uses the online credit platforms.
The South African startup offers a platform that traders can vend their products to customers and pay within a period of over 6 weeks. The local consumers are able to buy items from over 650 well-known stores such as Cotton-on ,Superbalist and the Pro shop.
An example that the fintech has provided on how the buy now pay later feature works is when a consumer buys a watch for R1000.The first payment will be R250, the three additional payments will be R250 every two weeks for a period of six weeks.
All the information that consumers need concerning the payments is provided in the Payflex platform .This is to ensure that the users are content in the transparent buy now pay later system. Customers are charged a fee when they fail to make payments on time. However the process is easy, fast and accessible for all customers.
The buy now pay later is accessible to majority of the merchants as there are no setup fees asked for. Merchants are provided with guaranteed payments once a transaction takes place. The daily transactions made via the Payflex platform are directly transferred to the bank accounts of the merchants. Payflex has enabled merchants gain higher order values of up to 70% and an overall sales increase of up to 30%.The South African people can now trade easily thanks to the buy now pay later feature accessible in Payflex.