Shops which accept payments via Razer Pay will now be able to offer interest-free instalment plans to their customers.
This follows a collaboration between Singaporean-based companies Razer Fintech and Rely to offer the Buy Now Pay Later (BNPL) service to merchants in South-East Asia registered with Razer Merchant Services (RMS).
BNPL, an instalment payment option without interest or fees, allows consumers to split a purchase into four payments.
The first payment has to be made upfront and the remaining three payments will be charged to the customer’s debit or credit card at an interval of every two weeks.
The transaction limit varies, Razer said in a statement, to encourage responsible spending though it’s capped at RM1,000 for debit cards and RM4,000 for credit cards. The partnership follows a recent announcement by Rely to expand its services in Singapore, Malaysia and South Korea after securing capital from Goldbell Financial Services to process up to S$100mil (RM303.8mil) in BPNL transactions.
As a card processing gateway, RMS powers online payments and supports over 110 payment methods for global blue-chip merchants, the company claimed.
It also offers an offline payment network with over one million physical acceptance points.
Razer Fintech CEO Lee Li Meng said the collaboration was aligned with the company’s commitment to build new and innovative ways to meet the needs of a burgeoning digital-savvy youth and millennial segment in South-East Asia.
A report by investment bank JPMorgan valued Malaysia’s digital sector at US$4bil (RM16.2bil) and projected it to expand at a compound annual growth rate of 24% until next year.
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