SOUTH AFRICA – PayJustNow, a Cape Town-based digital payment platform specialising in Buy Now Pay Later (BNPL), has secured an investment from a major fintech player, which will help drive its continuous growth.
It has already gained significant momentum and is available at more than 2500 purchase locations.
Weaver Fintech, a new division of Homechoice International (HiL), saw this growth potential and acquired an 85% stake in PayJustNow as part of the company’s first step in its strategy to build a stable of consumer-oriented fintech businesses.
Finchoice, a South African financial technology company, is another member of the Weaver Fintech stable.
With a focus on providing value-added services, such as insurance, personal loans, and value-based services, Weaver Fintech is well-equipped to assist PayJustNow in taking on the payments industry.
BNPL accounted for 2.1% of global e-commerce transactions in 2020 and that figure is expected to double by 2024 when BNPL will account for 4.2% of global e-commerce sales
Craig Newborn, Founder & CEO of PayJustNow, said the investment presented exciting opportunities, opening the door for expansion and further product development to serve not only consumers but also merchants.
“Weaver Fintech’s recognition through their investment and funding is an affirmation that what we set out to do holds real value,” said Newborn.
With PayJustNow’s robust platform and easy-to-use payment option, it is proving to be a valuable partner for South African retailers. According to Newborn, many of the retailers that are currently onboard are seeing incremental sales increases of up to 30%.
The rapid growth of the BNPL sector is expected to reach US$100 billion in 2021, up from the current US$50 billion. With its purpose-built platform, PayJustNow is well-positioned to capitalize on this opportunity. Its rapid adoption rates and local tech expertise help it respond to the changing needs of its customers.
The BNPL sector is undergoing exponential growth, both locally and abroad. It currently only makes up 2% of the global market, but consumers are expected to make nearly US$100 billion in retail purchases using BNPL in 2021, up from US$24 billion in 2020 and US$20 billion in 2019.