Buy Now Pay Later (BNPL) platform, Atome has launched its service in Malaysia with over 100 online and offline retailers including the likes of Agoda, ezbuy, Eu Yan Sang and Hush Puppies.
Malaysian shoppers can now purchase using Atome at merchant partners by scanning a QR code in-store or choosing Atome as a website checkout option.
“Offering Atome’s flexible payment option helps merchant partners increase conversions by 17 percent on average and average basket size by over 30 percent. We saw this in Singapore recently with Sephora and how they were able to widen their customer base thanks to Atome.
“In the case of homeware brand, IUIGA, they doubled their average basket size and grew transactions by 15 times after integrating Atome into their checkout process,” General Manager for Atome Singapore and Malaysia, Trasy Lou-Walsh said.
Walsh emphasised that Atome’s service will support Malaysian retailers and local businesses as they bounce back from the impact caused by the Covid-19 outbreak and Movement Control Order (MCO).
“Our payment option to split bills over three zero-interest payments and no hidden charges empowers consumers with choice, convenience and flexibility in how they choose to shop and pay.
Likewise, offering Atome as a payment option during checkout helps local businesses drive higher sales and conversion among the consumers,” Walsh highlighted on addressing the impact of the outbreak on SMEs and local businesses.
In 2020, the Australian Securities and Investments Commission (ASIC) released a report on the BNPL industry which revealed the substantial growth the sector had experienced, with an increase from 16.8 million in the 2017-18 financial year to 32 million in 2018 and 2019, representing an increase of 90 percent.
Recent reports have also suggested that BNPL services exacerbate the risk of debt constraints faced by Malaysians.
Walsh has said that the concerns are valid and all BNPL players should act and behave responsibly so the interests of both retail businesses and consumers are protected at all times.
“This is essential to build a long-term, sustainable and healthy industry. At the same time, we should seek to understand why BNPL is the fastest growing online method to pay globally but also increasingly in Asia, according to the latest Worldpay from FIS report.
I also think the industry can do much more to educate stakeholders because there is a general lack of understanding surrounding the BNPL business model.
In summary, it is in our best interest to ensure sustained and responsible repayment behaviour, which leads to repeat usage, which leads to a win-win-win outcome for the consumer, merchant, and us,” Walsh added.
There are already other players that have penetrated the Malaysian market which includes BNPL fintech provider, Split that allows businesses to offer their customers the choice of paying in up to three interest-free instalments without a credit card as well as Singapore-based hoolah and ride-hailing company, Grab.