Payment solutions company Stitch Express has officially launched its Buy Now Pay Later (BNPL) as a checkout payment option in its plug-in for merchants on platforms like Shopify and WooCommerce, as well as via its self-serve API.
According to the statement, the BNPL offering is now available to any online retailer using Stitch Express. It can be activated in minutes from the existing plugin dashboard with a widget that can be customised to match brand and theme design, with no custom development required. The launch makes enterprise-grade BNPL accessible for e-commerce businesses of all sizes, without the integration complexity or minimum volume requirements
Several merchants across South Africa have already begun using Stitch’s BNPL, including brands like Lego, The North Face, Scentimental and Popstrukt, among others.
“Stitch Express exists to make sure every South African e-commerce business has access to the same quality of payments infrastructure as the largest retailers in the country,” said Junaid Dadan, Co-founder and President at Stitch. BNPL has proven commercial impact: higher conversion, bigger baskets, and fewer abandoned carts. We’ve built it so that any merchant can go live the same day, and we’re already seeing strong results from the merchants who’ve been using it”
What is Stitch Express?
Stitch Express is a payments solution designed for e-commerce merchants that leverage platforms such as Shopify, WooCommerce, Squarespace and more. It also offers an easy-to-integrate REST API. Express offers a set of curated, high- converting payment methods, built on the highly reliable Stitch platform, to enable a better, more seamless checkout experience.
How Stitch Express’ BNPL Works
Stitch BNPL gives consumers the ability to choose their own repayment schedule, splitting purchases over 2-6 instalments. This offers more flexibility than most competing BNPL products currently available in South Africa. Importantly, customers remain on the merchant’s site during checkout and know-your-customer (KYC), and the payment experience remains consistent with the rest of the store.
For merchants looking to access the new feature, do the following:
- Existing Stitch Express Merchants: Activate BNPL directly from the dashboard. No development work is required.
- New Merchants: New merchants will have to sign up at express.stitch.money and install the Shopify or WooCommerce plugin or access the Stitch API.
- Customers: Customers can choose their monthly instalment plan based on their credit score
The Growth of BNPL in South Africa
On a global scale, BNPL is a relatively new innovation, with most players launching in the past few years. Research from FFNews estimated the BNPL market globally would grow to $232,23 billion in value in 2024, up from 48,3% in 2023. It’s expected to continue to grow exponentially, reaching a value of $1 trillion by 2028.
South Africa is no different to the rest of the world when it comes to BNPL. The adoption is driven by the fact that more than 27 million South African consumers are either unserved or underserved by existing credit facilities, and 38% of the 26 million consumers with access are in breach or in arrears on their credit provider’s payments.
Another drive is the financial savviness of millennial and Gen-Z consumers who have a desire for low-interest and interest-free payment options. This has led to the concentration of BNPL platforms such as Payflex, Float, Happy Pay, PayJustNow, MoreTyme and now Stitch Express.
Benefits of BNPL for Small Businesses
BNPL is a consumer-first innovation; however, there are advantages for businesses as well. These include:
Increased Sales
One of the most significant benefits is the potential to increase sales. By offering customers the ability to spread payments over several weeks or months, businesses make it easier for shoppers to afford larger purchases. This flexibility encourages customers to buy more, leading to higher sales volumes.
Attracting New Customers
BNPL services are mostly used by younger, budget-conscious consumers, who prefer spreading out costs rather than paying in full up front. By offering BNPL, SMEs can appeal to a new demographic of customers who may not have considered purchasing before.
High Average Order Value
When you give your customers the option to pay later, they tend to spend more per transaction. Instead of limiting themselves to a strict budget, they add more items to their cart knowing they can pay in instalments. This results in a boost to the average order value for businesses offering BNPL.
Improved Customer Retention
Providing a flexible payment option like BNPL creates a more enjoyable and low-cost shopping experience, which can drive customer loyalty. When customers feel supported through convenient payment solutions, they are more likely to return. Additionally, loyal customers will also promote the business to others, making room for more sales and a larger customer base.
Is BNPL Right for Your Business?
Deciding whether or not to implement BNPL services requires careful consideration. Key factors to consider are:
Customer Base
Is your customer base interested in flexible payment options? Younger consumers and those on a budget are most likely to choose businesses that offer BNPL. If your customers value this type of flexibility, offering BNPL can enhance their shopping experience.
Sales Volume
If your business deals with frequent or large transactions, offering BNPL services can increase your average order value and reduce cart abandonment. However, if your transactions are smaller, BNPL may not make as significant an impact.
Cash Flow
Ensure your business has enough liquidity to manage delayed payments from customers. BNPL can put strain on cash flow, so before offering the service, determine whether your business can handle waiting for payments while covering operating expenses.
