Innovation in the prepaid card segment has led to the mass adoption of digital payment among consumers. This has led to prepaid payments instruments gaining traction across different industry verticals, from crypto-linked prepaid cards to prepaid cards in micro-lending. As a result, various BNPL companies are launching these credit line-backed innovative prepaid card product offerings to attract more customers. For instance,
The Singapore-based deferred payments company Pace Enterprise introduced the virtual Pace Card in April 2022. It is an extension of Pace’s app, which provides the customer with control, flexibility, and security while making BNPL payments. The customers can access this card through the app without any charge.
The card has characteristic features such as enabling the customers to make all online purchases with Pace’s merchants and also merging the card with wallets such as Google Pay and Apple Pay Additionally; the company is going to launch in-store payments for the customers soon. Since the virtual card is connected to the app, consumers can easily track and manage their payments. The company also provides the customer with the option of making BNPL payments directly from their desktops.
Moreover, the customers get to enjoy the loyalty program of the company, Pace Perks, to enable consumers to get benefits while shopping using the virtual card. For each purchase, the Pace card allows the customer to convert 5% of each purchase value to Perks. This can be used for discounts on the next purchase by the customer. While the merchants, after the adoption of Pace Card to their point-of-sale systems, saw greater adoption of the new, secure technology, thus offering wider payment options to consumers.
The company, with the launch of the virtual card, has provided momentum to the financial inclusion of the country by making financing easier and more accessible to customers. Therefore, the BNPL company, which has over 5,000 points of sale across the region, now targets to reach one million users by the end of 2022 and is likely to see growth over the long run.
Notably, the company, as a part of the expansion strategy, will be launching the product in Malaysia, Hong Kong, Thailand, and Japan by Q2 2022. Moreover, the company announced acquiring Rely, a Singapore-based BNPL start-up, in March 2022. Consequently, this re-establishes the fact that Pace is taking up different strategies to strengthen its presence in Asia. Moreover, this acquisition will allow the customers to make use of Pace’s deferred payment plans on more brands in Singapore and Malaysia.
Additionally, Rely will also be working with the existing merchants and helping them integrate with Pace’s platforms. Subsequently, it will also help the merchants drive incremental revenue, providing growth to their businesses. Pace, which aims to democratize financial services across the region, will see much success catering to the financial needs of its customers in the region over the next four to eight quarters.
In Singapore, BNPL payments have emerged as one of the most popular alternative payments arrangements as compared to credit cards for consumers. This has also been seen as an appealing payment method for merchants since it offers higher conversion rates as well as basket size. Therefore, this BNPL product of Pace is likely to witness significant adoption among consumers.
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