Payments platform Fave has launched its Buy Now, Pay Later (BNPL) service in Singapore and Malaysia to provide over 6 million users with instant access to interest-free credit to be used at over 40,000 stores as a pilot.
The service is now available on the Fave app for iOS users, followed by an Android release in July 2021.
With the launch of FavePay Later, offering interest-free flexible payments on its app, eligible Fave users will be able to split purchases over three equal, interest-free instalments.
Fave said that repayments will be automatically drawn every month, with no fees charged for on-time payments. In addition, customers will earn up to 10% cashback with every purchase.
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.
Given this development, a new paper by the National University of Singapore (NUS) urges for risk-appropriate regulations to be enforced for these BNPL schemes.
Fave recently opened up their API integration for online e-commerce platforms to support FavePay payments with buy now pay later and loyalty cashback features.
With a growing number of partnerships with large tech firms in 2021, Fave will extend its BNPL offering to some of the largest online commerce companies in Southeast Asia within the latter half of 2021.
In April 2021, Fave was acquired by Indian fintech tech unicorn Pine Labs in a deal valued over US$ 45 million to accelerate joint global expansion.
“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, CEO of Fave.
