In January 2021, the GameStop mania took Wall Street by storm, when it shot up by more than 1500% in a single month. But it proved a point: the world has pivoted, and the norms of finance have been challenged, and quite often for the betterment of everyday people.
One such creative disruptor within the payments industry is 'buy now, pay later', which provides an alternative option to a credit card. Through this method, consumers can receive a purchase they made but pay for it over interest-free instalments without a credit card. Are you wondering if the buy now, pay later (BNPL) wave is here to stay in Malaysia? Here are a few reasons why we believe it is!
Digitalisation is going to be the way forward in these times. Presently, small and medium enterprises make up 98.5% of business establishments in Malaysia. To survive the aftermath of the pandemic, these businesses have to digitalise. However, only about one out of three enterprises in Malaysia have implemented digital strategies, and less than 25% of them have a digital strategy team.
This shows us the incredible opportunity that digitalisation has to further expand in Malaysia. With that space for growth, the BNPL wave stands to grow in tandem as well.
As businesses get digitalised, they have the opportunity to tap into a larger market. With the benefits that BNPL can offer businesses, such as better conversion and larger basket values, BNPL services give businesses an additional competitive advantage.
Consumers can make purchases and pay over instalments, which in turn, will help businesses to sustain despite a slower and more unpredictable economy. Because of the win-win solution it brings, BNPL has a high chance to be a preferred payment method for both consumers and businesses, and this can lead to its growth.
It is undeniable that the Covid-19 pandemic has wrought much damage in its wake. Many have lost their jobs or experienced income reduction. BNPL serves as one way to help people buy things they need, even with limited cash. It can also help a person to manage their finances more efficiently and keeping track of our expenses.
It is estimated that e-commerce sales will form nearly 17% of all retail sales by the end of 2021, with purchases made through mobile devices reaching $729 billion by 2023. This is no surprise, as e-commerce is a win-win solution for both consumers and businesses.
With the pandemic in 2020 forcing lockdowns across the region, it has reminded brands that digital marketing is one of their strongest assets. Know your consumers and reach them on Tik Tok, Instagram stories, or even Twitch streaming. Livestream, make videos, do whatever that reaches your consumers best.
For consumers, shopping from the comfort of the home is a much-welcome alternative to going out in this pandemic-stricken world. Even with the COVID-19 vaccine being rolled out, many consumers might not want to go out and take unnecessary risk. Furthermore, as consumers are exposed more to e-commerce, they are also enjoying the conveniences of shopping online - no more battling traffic jams and paying for parking tickets at shopping malls.
During the pandemic, the usage of e-payments became more popular. As people got more comfortable with using e-payments, they began enjoying how convenient it is. Similarly, with the growth of the e-commerce and the e-payments industry, more people will be exposed to the BNPL option. As they start using it, they will appreciate the benefits it brings, and this can lead to the growth of the BNPL industry.
We hope we have convinced you that the buy now, pay later wave is here to stay in Malaysia. Ride this wave with Split, where you can shop at any of our merchant partners and pay in instalments with no interest, late fees or processing fees.
Already using a credit card? With Split, you can also say goodbye to late fees and finance charges and breathe a sigh of relief! The best part - you don’t even need a credit card at all - Split offers instalments for debit cards too. To understand the difference between cash, debit and credit cards, you can read Split’s payments guide.
In January 2021, the GameStop mania took Wall Street by storm, when it shot up by more than 1500% in a single month. But it proved a point: the world has pivoted, and the norms of finance have been challenged, and quite often for the betterment of everyday people.
One such creative disruptor within the payments industry is 'buy now, pay later', which provides an alternative option to a credit card. Through this method, consumers can receive a purchase they made but pay for it over interest-free instalments without a credit card. Are you wondering if the buy now, pay later (BNPL) wave is here to stay in Malaysia? Here are a few reasons why we believe it is!
Digitalisation is going to be the way forward in these times. Presently, small and medium enterprises make up 98.5% of business establishments in Malaysia. To survive the aftermath of the pandemic, these businesses have to digitalise. However, only about one out of three enterprises in Malaysia have implemented digital strategies, and less than 25% of them have a digital strategy team.
This shows us the incredible opportunity that digitalisation has to further expand in Malaysia. With that space for growth, the BNPL wave stands to grow in tandem as well.
As businesses get digitalised, they have the opportunity to tap into a larger market. With the benefits that BNPL can offer businesses, such as better conversion and larger basket values, BNPL services give businesses an additional competitive advantage.
Consumers can make purchases and pay over instalments, which in turn, will help businesses to sustain despite a slower and more unpredictable economy. Because of the win-win solution it brings, BNPL has a high chance to be a preferred payment method for both consumers and businesses, and this can lead to its growth.
It is undeniable that the Covid-19 pandemic has wrought much damage in its wake. Many have lost their jobs or experienced income reduction. BNPL serves as one way to help people buy things they need, even with limited cash. It can also help a person to manage their finances more efficiently and keeping track of our expenses.
It is estimated that e-commerce sales will form nearly 17% of all retail sales by the end of 2021, with purchases made through mobile devices reaching $729 billion by 2023. This is no surprise, as e-commerce is a win-win solution for both consumers and businesses.
With the pandemic in 2020 forcing lockdowns across the region, it has reminded brands that digital marketing is one of their strongest assets. Know your consumers and reach them on Tik Tok, Instagram stories, or even Twitch streaming. Livestream, make videos, do whatever that reaches your consumers best.
For consumers, shopping from the comfort of the home is a much-welcome alternative to going out in this pandemic-stricken world. Even with the COVID-19 vaccine being rolled out, many consumers might not want to go out and take unnecessary risk. Furthermore, as consumers are exposed more to e-commerce, they are also enjoying the conveniences of shopping online - no more battling traffic jams and paying for parking tickets at shopping malls.
During the pandemic, the usage of e-payments became more popular. As people got more comfortable with using e-payments, they began enjoying how convenient it is. Similarly, with the growth of the e-commerce and the e-payments industry, more people will be exposed to the BNPL option. As they start using it, they will appreciate the benefits it brings, and this can lead to the growth of the BNPL industry.
We hope we have convinced you that the buy now, pay later wave is here to stay in Malaysia. Ride this wave with Split, where you can shop at any of our merchant partners and pay in instalments with no interest, late fees or processing fees.
Already using a credit card? With Split, you can also say goodbye to late fees and finance charges and breathe a sigh of relief! The best part - you don’t even need a credit card at all - Split offers instalments for debit cards too. To understand the difference between cash, debit and credit cards, you can read Split’s payments guide.