TDMC Founder Cheryl Ingram says BNPL has revolutionised how clients trade in an increasingly competitive market – and it’s only getting more attractive for consumers and retailers alike. 

Historically, delayed retail payment options like credit and store cards have come with prohibitive elements – mainly draconian post-purchase interest rates and the threat of entering into a dangerous debt cycle. 

A Buy Now Pay Later (BNPL) payment gateway allows the consumer to receive their goods upfront and pay them off over an extended time frame, absolutely interest free. It is a gamechanger for consumers wanting to participate in safe retail transactions while enjoying immediate gratification. And for retailers it has far reaching positive consequences. 

For online retail marketing experts TDMC, integrating BNPL payment options on their Shopify driven sites has proven to be an essential part of their suggested strategy – at last count, more than 50% of their retail clients had opted to integrate their preferred supplier PayJustNow as an additional payment platform alongside their usual channels. 

How & why BNPL works

For BNPL users the premise is simple, albeit with a few variations across different providers. Once approved as a purchaser and it’s clear you are good for the transaction (having made an initial full upfront purchase via the payment portal), you can then enter the extended-payment system. 

For PayJustNow users that means a 1/3 immediate payment on purchase, followed by two equal interest-free debits in the following two months. Your credit limit is set for the first few transactions, after which you as the consumer may apply for periodic credit limit increases. 

For the consumer, it is a no hassle opportunity to get the things you want and need, ranging from fashion to fine jewellery and even car tyres – with no unnecessary surprises. The retailer is paid immediately on transaction. 

What’s in it for the retailer?

If the consumer is not paying any interest, then surely the retailer carries a hefty portion of the cost and risk? “The merchant does pay a slightly larger fee than they would for processing a credit card, but the merchant carries no risk and is settled immediately in full, less our fees,” explains Founder and CEO of PayJustNow Craig Newborn.

This article was first published on Retail Brief Africa.