Fave has unveiled a buy now, pay later (BNPL) option in Singapore and Malaysia, where it has more than 6 million users. The service is immediately available as a pilot in more than 40,000 stores for Apple iOS customers, with access for Google Android users to follow next month.
Called FavePay Later, the âinterest-free creditâ option would allow eligible users to split payments into three equal installments, which would be automatically deducted each month. No additional fees would be charged if payments were made on time, the mobile payment and e-commerce app said in a statement on Monday. He added that users would also earn up to 10% cashback with every purchase.
The Fave app is available in Singapore and 35 cities in Malaysia and Indonesia. It will launch in India later this year, following its acquisition in April 2021 by Pine Labs in India.
The BNPL service is available at all Fave merchants in Singapore and Malaysia, including Marks & Spencer, Best Denki, GNC and Pandora.
The launch would provide cash-strapped consumers who needed easier access to credit, Fave said.
Under the terms and conditions listed on its website, customers’ eligibility for FavePay Later would be assessed based on several criteria, including the validity of the credit or debit card linked to the user’s Fave account and the user’s transaction history on the e-commerce platform. Customers would incur a late fee of 1.5% of the final price if they did not complete a deposit by the due date.
Merchants are also expected to pay additional fees for FavePay Later transactions from September 2021, according to Fave.
Fave CEO Joel Neoh said customers want flexibility, convenience and rewards, while merchants should facilitate cashless, loyalty and installment payments.
The payments platform said its BNPL option will be expanded to include multiple e-commerce platforms in Southeast Asia later this year. This follows its recent decision to use API (Application Programming Interface) for these operators to support FavePay payments, including BNPL as well as cashboack functionality.
Citing figures from Juniper Research, Fave said BNPL services are expected to account for 24% of global e-commerce transactions for physical goods, by value, up from 9% this year. They would represent at least 1.5 billion transactions in 2026, against 340 million this year.