Fintech and payments provider Adumo has partnered with TymeBank to extend the newly-launched MoreTyme payment offering to small and medium enterprises in South Africa. MoreTyme is a buy-now-pay-later (BNPL) payment service that offers consumers a three-instalment, interest-free payment option at the point of sale.
Paul Kent, CEO at Adumo, says South African businesses and consumers are hungry for new and convenient payment services. “The past eighteen months have seen a transformation in the local payments landscape, with new contactless and cashless payments and alternative credit solutions transforming the retail landscape. Our new partnership with TymeBank will now extend the benefits of MoreTyme to small and medium enterprises across South Africa, giving them an exciting new tool for driving greater revenue and footfall at their stores.”
BNPL is a payment method offered at the point-of-sale or online that provides consumers with interest-free instalment payments. BNPL has proven hugely successful in other markets, where a mostly millennial demographic has adopted the payment method to purchase items that range from fashion to electronics.
According to TymeBank CEO Tauriq Keraan, “MoreTyme is the modern way for customers to pay for goods. It is a fully digital experience and provides customers with a smart option for immediately receiving their goods whilst spreading their cashflows over a 60-day period through an interest-free facility. We are delighted to be in partnership with Adumo to rapidly expand consumers’ access to MoreTyme.”
The global BNPL transaction volume is predicted to grow ten to fifteen times in value by 2025, and in Europe BNPL is expected to account for 30% of all ecommerce spend by that year.
Kent says BNPL has proven hugely successful in driving sales and increasing the average basket value in other markets. “Retailers that offer buy-now-pay-later as a payment option can expect a 20%-30% increase in retail conversion rates and a 30%-50% increase in ticket size based on current industry benchmarks, and drive greater footfall to their stores. This is especially significant in light of the challenging operating environment and constrained economy many retailers are currently contending with.”
Adumo is South Africa’s largest independent payment processor, and provides payment solutions and expertise to more than 50 000 merchants in 13 countries.
According to Kent, a pilot project is currently underway at select Jam Clothing stores, with the solution being offered to the broader Adumo customer base from November 2021. “Following the success of the pilot project, we will offer MoreTyme to our existing and new retail customers. While BNPL adoption has been driven by millennials in the more developed markets, we expect South Africans from all walks of life to see the benefits of MoreTyme, regardless of age or income group.”
Adumo services more than 50 000 active clients and 90 000 active card machines, processing more than R80-billion in transaction value across thirteen African countries. The company counts some of South Africa’s most trusted payment providers within its group structure, including Sureswipe, iKhokha, Innervation Pan African Payments, Innervation Rewards, Adumo Online, Humble Till, GAAP, and Switch Pay.