South Africa: Buy-now pay-later platform lands investment from Australian multinational

South African fintech startup Payflex has secured investment from Zip Co Limited, an Australian-listed multinational.

Payflex is a buy-now pay-later (BNPL) player. Paul Behrmann, Payflex CEO and founder, says the investment and support by Zip Co is a vote of confidence in local fintech innovation and the market opportunities inherent in South Africa.

“Although Zip was launched in Australia, it has expanded into the USA, Britain and New Zealand. With a leader in the BNPL space investing in Payflex from inception, we have the financial muscle to expand our footprint and provide merchants with comfort that the company they are dealing with has solid financial backing,” he says.

Payflex’s BNPL model allows customers to shop at over 650 well-known online stores like Cotton-on, Superbalist and The Pro Shop. Payments are split over four interest-free instalments.

The process is simple and quick for customers – the assessment is done in seconds and customers only pay a fee if they miss a scheduled instalment. Payflex accepts any Visa or Mastercard cards.

Merchants which offer Payflex as a payment option report higher order values of purchases by up to 70%. They have also seen sales increases of up to 30% and repurchase rates of up to 70%. “Most importantly for merchants, transactions are settled daily directly into their bank accounts. Once the transaction is approved, the merchant is guaranteed payment, putting an end to the e-commerce problem of credit card chargebacks,” says Behrmann.

Merchants pay no setup fees when partnering with Payflex and only pay transaction fees on successful orders.

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