[FEATURING] Firms offer installment terms for online sellers
HOMEGROWN finance sector players announced signing a deal offering card-free installment solutions for online retailers in the country.
In a statement last Monday, Payment system operator Paynamics Technologies Inc. (PTI) announced a ‘strategic partnership’ with financial technology (fintech) First Digital Finance Corp. (FDFC) to “give local online retailers more options and flexibility with their finances especially during the pandemic.”
The partnership particularly allows PTI merchants to pay for their purchases in installments and pay either bi-weekly or monthly over three, six, nine, or 12 months with monthly interest rates between 0 percent to 3.49 percent through FDFC’s “buy now pay later” application “BillEase.”
Merchants can also offer a true 0 percent annual percentage rate (0 percent APR) by default or limited time, according to PTI.
For example, a P30,000 purchase could be split into P3,300 over 6 months or P1,650 bi- weekly with 1/3 upfront payment, interest-free.
“This partnership with Paynamics is a critical part of our mission in providing better and more accessible card-free installment options to Filipinos; the majority of them are currently uncarded and underserved,” FDFC Co-Founder and CEO Georg Steiger was quoted in the statement as saying.
“Our collaboration accelerates this mission by enabling us to offer our buy now pay later solution to more merchants with their extensive network and thousands of merchants relying on their fast and secure payment gateway,” Steiger added.
To avail of the program, merchants need to provide a valid ID at the checkout in the app to sign up. Installments will be shown in actual amounts with no hidden fees and no surprises. The buy now, pay later option is available for purchases ranging from P500 and up with a 15-day or up to 12 months payment plan.
“We want to help more merchants drive their businesses by adding a complementary payment option that solves one of the barriers to conversion: price. Our partnership is about adding inclusivity and increasing shoppers’ affordability to our merchants’ checkout,” PTI CEO and Co-Founder Mylene Chua Magleo said.
“Having immediate access to credit at the point of sale is an important feature needed for businesses to grow today and what makes this solution unique is that it’s completely card-free, customers can be eligible without having to sign up for a credit or debit card,” Magleo added.