Fintech company Fave announced today (June 28) that it has launched its “Buy Now, Pay Later” (BNPL) service in Singapore and Malaysia.
This pilot will provide over six million Fave users with instant access to interest-free credit to be used at over 40,000 stores. The service is available on the Fave app for iOS users today, followed by an Android release in July 2021.
Called FavePay Later, the service offers interest-free flexible payments on the Fave app.
Eligible Fave users will be able to split purchases over three equal, interest-free instalments. Repayments will be automatically drawn every month, with no fees charged for on-time payments.
In addition, customers can earn up to 10 per cent cashback with every purchase.
FavePay Later is available at all Fave merchants in Singapore, including brands like Pandora, Marks & Spencer, Best Denki, Puma, GNC and more.
Fave said that it will extend its BNPL offering to some of the largest online commerce companies in Southeast Asia within the later half of 2021.
The firm recently opened up their API integration for online e-commerce platforms to support FavePay payments with buy now pay later and loyalty cashback features.
As one of the leading payment apps in the region, we believe in pushing our boundaries and innovating to create better experiences. Our customers care about flexibility, convenience and rewards. FavePay Later is built with these customer needs in mind, and it leverages our consumers’ trust in the Fave brand.
Joel Neoh, CEO of Fave
BNPL is poised to grow rapidly
BNPL services help by reducing the upfront cost for shoppers, making their purchases more manageable financially. This increases the likelihood of customers “checking out” their purchases and reduces the abandonment of shopping carts.
With the choice of spreading out their payments over time, consumer baskets have also grown in size.
According to Juniper Research, BNPL services will account for over 24 per cent of international e-commerce transactions for physical goods by value by 2026. This is up from nine per cent in 2021.
About 38 per cent of Singaporeans, or 2.2 million people, have used a BNPL service, according to financial comparison platform, Finder. This testifies to the phenomenal growth of BNPL startups in Singapore.
The launch of FavePay Later comes at a time of pent-up demand among consumers after prolonged periods of lockdowns and social restrictions, with cash-strapped consumers seeking easier access to credit and merchants seeking innovative ways to revive ailing sales.
“We are excited to continue providing technology that helps our customers shop better, especially in the lead up to the reopening of shopping post-COVID lockdowns,” added Joel.
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Featured Image Credit: KrAsia
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