Cape Town-based start-up PayJustNow has announced a significant investment by a major fintech player that will drive its ongoing growth in the booming buy now, pay later (BNPL) space.
Established in 2019, PayJustNow has shown significant customer and merchant growth, with 180 000 shoppers signed up, and available at more than 2500 points of purchase.
This growth potential was seen by Weaver Fintech, making its first acquisition of an 85% stake in PayJustNow, the fastest growing Buy Now, Pay Later (BNPL) business in Southern Africa. Its strategy is to build and buy a stable of consumer fintech businesses that drive growth through product innovation and customer-led insights.
Also in the Weaver Fintech stable is Finchoice, which has convincingly proven the business case for mobile-first fintech in the burgeoning mobile-savvy South African market. With a focus on personal lending, insurance and value-added services, the investment in PayJustNow signals Weaver Fintech’s entry into the payments space while giving PayJustNow access to capital to further its growth strategy.
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 its transparent, convenient, and consumer-friendly payment option, PayJustNow is winning over consumers and proving a valuable partner to South African retailers. ‘’More recent retailers to onboard include the likes of Edgars, Puma, HP and the Cape Union Mart Group, with retailers that use BNPL programmes seeing incremental sales boosts of up to 30%, and an increase in average basket size of up to 35%,’’ said Newborn.
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 $100 billion in retail purchases using BNPL in 2021, up from $24 billion in 2020 and $20 billion in 2019.
With its innovative, purpose-built platform, high customer adoption rates delivered in a short space of time and local tech expertise that ensures the ability to rapidly respond to market needs and business insights, PayJustNow is set for accelerated growth, delivering a truly customer-centric offering built on real-time data.