[imagesource: 3ab2ou]

While it might seem like a good idea to pay something off on credit over the course of a few months, or even a year, when shopping online, you could land yourself with some hefty interest, and worse, debt.

All the while, that item is decreasing in value, day by day.

The system needs a shake-up, and that’s why the list of South African online retailers getting on board with ‘buy now, pay later’ (BNPL) services at checkout is rapidly growing.

There’s one service, however, that’s breaking the mould, making it easier and more cost-effective to pay off your purchase, completely interest-free, over three months.

PayJustNow has revolutionised the BNPL game in South Africa, reflected in the growing list of merchants partnering with them to make shopping easier and more cost-effective for consumers.

BusinessDay‘s Mudiwa Gavaza spoke to PayJustNow CEO Craig Newborn and data and analytics officer Mark McChlery, to find out more about how it all works.

Newborn explains that their service allows online shoppers to pay about 30% for an item at checkout, the difference being guaranteed by PayJustNow to a merchant or retailer. The shopper can then pay the remaining balance at a later date.

The service works by using artificial intelligence platforms to assess the creditworthiness of a consumer in just 10 seconds, by accessing a number of data points.

These include the type of card being used, LinkedIn, and other available professional information. The system then cross-references the information with one of the large credit bureaus.

I signed up for PayJustNow a few months back. It’s quick, easy, and they ask for your consent before accessing your information, which they don’t share with anyone else.

Newborn says the business model is one of the factors helping to increase adoption of e-commerce by fearful consumers. A first-time online shopper can, for example, buy shoes worth R1,500 online, use PayJustNow to pay R500 immediately, receive the product, try on the shoes and settle the full amount once satisfied with the deal.

40 000 people have signed up for the service, with R24 million in transactions processed to date.

If you’re keen to sign up, here’s how to make that happen.

First, set aside around two minutes of your day, because that’s all you need, then head on over to PayJustNow and follow these simple instructions:

Done.

While you’re there, browse PayJustNow’s online mall for easy access to all the merchants that offer the BNPL option at checkout.

Seriously, the toughest part of this entire process is choosing your goodies online, and filling that cart.

If you’re keen to know more, you can listen to the full interview with Gavaza below:

[source:businessday]