PETALING JAYA: Smart payment app Fave has tied up with CIMB Bank Bhd to offer a mobile first buy now, pay later (BNPL) service to CIMB’s customers.
The offering is aimed at providing shoppers with access to an alternative and flexible payment option and connect merchants to a larger customer base across Malaysia. This collaboration enables over 8.4 million CIMB cardholders to have access to Fave’s BNPL service at over 15,000 merchant locations including Al-Ikhsan, Puma, Box of Bricks, Focus Point, Jakel and many more.
Fave’s BNPL service provides greater flexibility as it allows shoppers to split payments into three interest-free instalments. In addition, users will benefit from stacked rewards: earn CIMB bonus points and up to 15% cashback with their purchases at selected merchants.
This collaboration comes in the wake of changing consumer spending and shopping behaviour. Retailers are not only looking to adopt digital payment methods but also offer solutions to improve the accessibility of their products and services. With the rise of BNPL options, online instalment plans have come to complement normal credit card services. Today, Malaysia has risen to become a regional hotspot for BNPL, with an estimated compound annual growth rate of 49% between 2022-2028.
CIMB group consumer banking CEO Samir Gupta said this service provides customers with an alternative and flexible payment option as they transact digitally in today’s mobile-first environment.
Fave CEO Joel Neoh said with FavePay Later, it is empowering Malaysian consumers to afford products in the most convenient way: simply opt-in to split a bill into three interest-free instalments at the moment of the checkout when paying with the Fave app.
“The collaboration has enabled us to extend this service to debit card customers that do not have traditional credit lines with financial institutions and improve financial participation. We are set to empower retailers by growing their customer base, basket size and retaining their loyal customers better with our services and easy to use technology.”