Helios P2P along with FriMi have partnered to provide a unique blend of the ‘Buy Now, Pay Later’ (BNPL) model which allows customers to look at attractive and flexible financing options for their purchases as well as for other customers to look at potentially earning attractive returns by crowdsourcing the funding of the credit line.
The Buy Now, Pay Later facility is a type of instalment loan which will allow the customer to finance their purchases with their equated monthly instalments being deducted on their salary day and the loans are financed by lenders on the Helios P2P platform. Helios is also working on providing additional features such as interest free payments which will allow merchants to receive the cash up front and for customers to make their payments in instalments.
In terms of the current process, users can sign up for the existing Helios BNPL facility available on the FriMi in-app lifestyle section and tap into a credit line. Based on an assessment of the customer’s creditworthiness the BNPL facility will be approved, and the customer is able to get the funds to purchase all what they want to buy with minimal hassle.
The Buy Now Pay Later model is popular in markets such as the US and Australia especially among the digital native population with providers such as Afterpay and Klarna proving to be popular. While merchants reap the rewards of faster access to cash, this also provides creditworthy customers with another credit line for their short to mid-term purchases. With Helios’ unique value proposition in this space this also opens the space for retail and institutional lenders to potentially earn attractive returns based on the funding of these credit lines as well.