What is Payflex?
Payflex is a Buy Now Pay Later (BNPL) online payment method that allows shoppers to pay for their purchase in 4 installments over six weeks, interest-free. Customers need to pay only 25% of the purchase price on the day they order. Their product is shipped immediately, and they pay the rest over six weeks at no additional cost.
Payflex makes payments simple and hassle-free – it can assess customers in seconds without any documentation required.
Payflex is part of the $1 billion Zip Co group listed on the Australian Stock Exchange. All payments are processed through state-of-the-art systems that ensure security for all transactions.
How does Payflex work?
When a customer is ready to make a purchase, they go to the checkout page where they select Payflex as their payment method. If they’re a first-time customer, the consumer will need to do an assessment of the application. Payflex asks for their name, email address, and ID number to do that.
Payflex verifies their identity using an automated system that assesses credit history and analyzes the information on the ID. The system works in real-time, so if everything checks out, the customer will be able to check out in less than a minute.
The final step is agreeing to the installment schedule and paying the first installment. The merchant received the funds immediately and can start preparing the product for pick-up or sending.
The first payment of 25% is applied immediately to the order, and the balance is payable in three equal installments over the next six weeks.
Why do merchants and consumers use Payflex?
BNPL offers consumers an affordable alternative to credit cards by allowing them to finance purchases over time. Unlike credit cards, BNPL doesn’t charge high-interest rates or late fees. This allows customers to pay for items in installments and spread out their payments over time. If you’re at a store and want to pay for an item with BNPL, approval is instantaneous, whereas if you plan to order the product online for a later delivery date, approval can be completed ahead of time so that there’s no hassle involved in payment when the order is placed.
Payflex transfers funds to the merchant immediately upon a customer’s purchase. Smart algorithms allow it to assume credit risk for both the retailer and the consumer.
Merchants benefit from offering a payment method that provides more customers with the ability to access credit and afford larger purchases. BNPL also has a positive impact on conversion rates, by giving consumers more flexibility and control over what they can buy. By enabling popular BNPL payment methods like Payflex, merchants can attract a wider range of customers while also benefiting from more repeat visits and larger average basket sizes.
How can merchants start accepting Payflex?
To offer Payflex as part of the checkout experience in South Africa, merchants should work with a payment gateway that provides access to this payment method.
PayU’s global payment platform provides access to Payflex and hundreds of other global, local, and alternative payment methods throughout the world. Through a single connection, merchants can sell in any market and trust that they are offering the right combination of payment method options to win the loyalty of local customers.