Payflex - Afrikan Heroes

Australia’s Zip Acquires South Africa’s Fintech Startup Payflex

September 3, 2021

Paul Behrmann, founder and chief executive officer (CEO) of Payflex

The need to expand into the African market as part of its global expansion agenda has led to the acquisition of South African buy now pay later fintech startup Payflex by Australia Securities Exchange (ASX)-listed Zip. Payflex was founded in 2018 with the objective to help consumers to shop now and pay later, interest-free. It launched with Superbalist.com in 2019 and is now offered at over 1,000 online merchants.

Zip, for its part, is a leading player in the digital retail finance and payments industry. The company offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries.

With a presence in 12 markets across five continents, Zip plans to grow the South African business and expand into other African markets with sizable underbanked, digitally savvy populations that will benefit from innovative payment solutions. With that in mind, it has announced its intention to fully acquire Payflex.

“The growth of Payflex over the past few years has demonstrated the demand for buy now, pay later in South Africa. Zip’s acquisition will boost the speed and scale of Payflex’s expansion and allow merchants and shoppers to benefit from Zip’s world-class products, platform and global reach. It is also a significant vote of confidence in the all-South African Payflex team, which will remain unchanged and focused on growing the business,” said Paul Behrmann, founder and chief executive officer (CEO) of Payflex.

Larry Diamond, Zip managing director and CEO, said the last year had been “truly transformational” for Zip as it continued to deliver, despite the most exceptional global economic conditions.

“We started the year with a clear strategy for global expansion, and we have seen record growth, ending the year with US$5.8 billion in total transaction volume, and more than 7.3 million customers and 51,000 merchants around the world,” he said.

“The shift away from the unfriendly world of credit cards that was the genesis of Zip’s Australian business, and its proven to be a global phenomenon. Millennial and Gen Z customers are consistently demonstrating their appetite for the simpler, fairer payment options that Zip is providing. This global play supporting customers and global retailers alike provides a real point of difference as we strive to become the first payment choice and a trusted and innovative, global payments brand.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

South African Fintech Startup, Payflex, Secures New Funding Round

April 22, 2021

Payflex, a Johannesburg-based payment solutions provider, has received significant international investment from Zip Co, an Australian-listed multinational fintech firm. Payflex CEO and founder Paul Behrmann says Zip Co’s undisclosed investment and support is a vote of confidence in local fintech innovation and will open up more market opportunities for the start-up.

“Although Zip was launched in Australia, it has expanded into the US, Britain and New Zealand. With a leader in the buy now pay later space investing in Payflex from inception, we have the financial muscle to expand our footprint and provide merchants with comfort that the company they are dealing with has solid financial backing,” saysBehrmann.

Here Is What You Need To Know

Zip Co, a buy now pay later fintech firm with a market cap of more than R55 billion, has a long-standing partnership with the Johannesburg-based start-up.

Payflex localized the best features of its solutions in the buy now pay later space after partnering with ZipCo Australia, which has over 6.4 million customers.

A Look At What The Startup Does

Payflex, which was launched in 2019 in collaboration with Superbalist, allows consumers to make purchases from over 650 online merchants on the Payflex digital mall and pay later, interest-free. The payments are divided into four interest-free installments.

According to Payflex, COVID-19 has accelerated the growth of SA’s e-commerce sector, with local online retail expected to surpass R62 billion ($4.3m) this year, nearly 4.5 times the R14 billion ($984k) figure in 2018.

Customers, according to the startup, will find the buy now, pay later process simple and quick. It entails a quick assessment, and customers only pay a fee if they miss a scheduled instalment.

According to the company, merchants who accept Payflex as a payment option report higher order values of purchases by up to 70%. They’ve also seen sales increases of up to 30% and repurchase rates of up to 70%.

“Most importantly for merchants, transactions are settled daily directly into their bank accounts. Once the transaction is approved, the merchant is guaranteed payment, putting an end to the e-commerce problem of credit card chargebacks,” adds Behrmann.

When partnering with Payflex, merchants pay no setup fees and only pay transaction fees on successful orders.

COVID-19 has fundamentally changed the rules of retail, according to Behrmann, with increased competition, rapidly changing customer expectations, and the emergence of new technologies.

“Consumers will continue to demand greater personalisation and convenience, simple payment methods and more control over their finances, so merchants need to ensure online shopping is part of their growth strategy,” he points out.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

South African Customers Get Online ‘Buy Now Pay Later’ Service

April 1, 2021

Paul Behrmann, CEO and founder of Payflex

South Africa’s Payflex has launched its buy now pay later online retail service to South Africa. The company – which has seen extraordinary popularity in Australia, the USA and Europe – lets users shop online and pay later, interest-free over six weeks.

“Traditionally paying via instalments in South Africa has been associated with high-interest charges, as you are penalised for paying for the item over time,” says Paul Behrmann, CEO and founder of Payflex.

“But by using Payflex, every purchase you make is interest-free. You’ll know exactly when each of the four interest-free payments is due and there are no hidden costs. It puts you in control of your finances.”

When making an online purchase, select Payflex as the payment method at checkout – Payflex accepts any Visa or Mastercard cards (debit, credit or cheque). Users will then need to provide their South African ID number in order to be assessed.

According to the company, fees only become due if users miss a scheduled payment, but they’ll receive email reminders in advance of each payment to help budget and make all payments on time. Behrmann says that it is important for South Africans to budget and ensure they’ve prioritised their purchases. “The hassle-free Payflex option allows you to see exactly how and when you will make your payments. Provided you make your scheduled payments on time, you won’t be paying one cent extra in interest or fees for your purchase.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry