Amazon subsidiary PayFort is teaming up with fintech valU for instalment sales services in Egypt. The aim is to allow a broader range of online merchants to offer ‘buy now, pay monthly’ to customers.
The ‘buy now, pay monthly’ service allows valU customers in Egypt to access 3-60 months instalment options for online purchases. PayFort integrates with merchant sites enabling customers to checkout with just two clicks.
According to PayFort, the buy now pay later option helps merchants in the region increase payment success rates by 12%.
At the same time, it says that overall sales rise by 8% to 10%.
Moreover, the number of abandoned online shopping carts falls by up to 10%.
“We are excited to announce our partnership with valU,” says Omar Soudodi, Managing Director, PayFort. This allows more merchants to bring buy now, pay monthly services to Egyptian consumers. According to our research, Egyptian consumers prefer to pay in monthly instalments over discount or any other financial incentive.
“In its first phase, all PayFort merchants in Egypt will be able to offer the new payment option. That is to registered customers of valU, where the line of credit has already been granted. However, there are also plans to expand the service to offer new payment options to more Egyptian consumers.”
valU’s ‘buy now, pay monthly’ option caters to both banked and unbanked customers.
PayFort valU: helping to increase Egyptian consumer spending power
As a result, buyers have the flexibility to make larger purchases more frequently online. So this increases their purchasing power and allows them to take advantage of favourable pricing when they see it.
Meanwhile, the process lets ecommerce merchants collect 100% of their sale at the time of purchase. This ensures good cash flow for Egyptian businesses. Furthermore the ‘buy now, pay monthly’ service also opens up new opportunities for merchants to build a larger customer base.
EFG Hermes launched valU in 2017. It allows Egyptian customers to purchase a wide range of products and services from over 2,500 merchants via an app.
valU customers receive instant credit decisions once they deliver the required documents to valU. Meantime unbanked customers receive feedback within 24-48 hours.
“valU’s mission has been breaking down barriers for Egyptian consumers to empower their aspired lifestyle. Our partnership with PayFort marks another step in our mission,” adds Mohamed El-Feky, CEO, valU for instalment sales services.
“Our strategy has focused on rapid expansion in the e-commerce space, due to the huge potential in that fast-growing sector. The partnership with PayFort falls within our strategic objective of exponentially growing our online points of sale. And it lays the groundwork for valU’s future growth.”