Fave has launched its “Buy Now, Pay Later” (BNPL) service in Singapore and Malaysia, providing over six million Fave users with instant access to interest-free credit to be used at over 40,000 stores as a pilot. The service is available on the Fave app for iOS users today, followed by an Android release in July 2021.
Eligible Fave users will be able to split purchases over three equal, interest-free instalments. Repayments will be automatically drawn every month, with no fees charged for on-time payments.
In addition, customers will earn up to 10 percent cashback with every purchase. FavePay Later is available at all Fave merchants in Singapore and Malaysia today, including marquee brands in popular retail verticals such Pandora, Marks & Spencer, Best Denki, Puma, GNC and more.
“As one of the leading payment apps in the region, we believe in pushing our boundaries and innovating to create better experiences. Our customers care about flexibility, convenience and rewards. FavePay Later is built with these customer needs in mind, and it leverages our consumers’ trust in the Fave brand. We are excited to continue providing technology that helps our customers shop better, especially in the lead up to the reopening of shopping post-COVID lockdowns.” said Joel Neoh, Chief Executive Officer of Fave.
“It’s also becoming increasingly critical for merchants to work with partners that have integrated solutions such as Fave who cater for cashless payments, loyalty, and now, instalment payments that ultimately take care of all the processing and risk for merchants. In addition, merchants gain access to valuable user behaviour data and insights via Favebiz.com,” added Neoh.
Fave is latest player to enter the BNPL segment following the debut of hoolah and Atome as well as e-commerce players Grab and Shopee partnering up with other BNPL players to introduce instalment plans on their platforms.
BNPL is poised to grow rapidly in Southeast Asia. New research from Juniper Research found that, by 2026, BNPL services will account for over 24% of international e-commerce transactions for physical goods by value, from just 9% in 2021.
The research also found that the global number of BNPL users will exceed 1.5 billion transactions in 2026, from 340 million in 2021. The market is set to grow from US$7.3 billion in 2019 to US$33.6 billion in 2027 at a compound annual growth rate (CAGR) of 21.2%, with the Asia Pacific leading the growth, according to key estimates from Coherent Market Insights.
