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One of the biggest retailers in South Africa, Pick n Pay has become the latest store to let customers buy products on credit using the increasingly popular “buy now, pay later” (BNPL) model.
In a statement released on Thursday, the company mentioned that it will be selecting products including smartphones and TVs, available on the BNPL basis.
Called PayJustNow, the offering allows customers to split repayments into three instalments through a “completely digital application process”. There are no fees and interest is not levied, provided the repayments are made on time.
Products available with the BNPL service include the electronics, home appliances, mobile devices and other “high-ticket items”, and initially these product categories were available at Pick n Pay Hypermarkets.
So how it works is that customers scan a QR code, adding the desired item to their in-app transaction basket. The application process does not take more than ten minutes to approve. When customers qualify, they then receive a code generated by the PayJustNow app, allowing them to purchase the item at the till within 15 minutes.
The retailer said: “Customers will pay 34% of the total payment upfront, with the remaining two payments of 33% each aligned with their subsequent salary dates,” according to MyBroadBand.
BNPL has been described as “similar to a credit card but without the hassle of an application process, card-swiping infrastructure, and separate limits for purchases and cash withdrawals”.
Additionally to this new offering, the retailer is also offering TymeBank’s MoreTyme to help customers manage their spending. Pick n Pay has also recently introduced RCS Finance in order to assist customers seeking to finance various large-ticket items.
This offers a loan of up to R250 000 with up to 60-month repayment terms for purchases on a large, single transaction.
Pick n Pay to let consumers buy smartphones and TVs on credit
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