Fintech start-ups continue to innovate the financial industry with new approaches to solving old problems. There is no doubt about a significant influx of fintech start-ups into the technological ecosystem that offers new solutions.
Fintech company Zilla has turned its attention to millennial customers in an attempt to win more customers to their purchase now pay later platform that allows consumers to make purchases and pay for them later with zero interest.
The company already has 30,000 people on the registration list since it has been in operation for 10 months. The Fintech company connects buyers of consumer goods to merchants in Nigeria, and enters the point of sale to finance the balance after the customer has paid a partial payment of 25 percent.
Registration for Tekedia Mini-MBA edition 9 (September 12 – December 3, 2022) has started. Register here. The cost is N60,000 or $ 140 for the 12-week program.
Customers who are not financially able to make a direct purchase repay the credit to Zilla in four equal installments without interest over the correct weeks. Last September, the Fintech company raised a $ 300,000 pre-seed in financing to provide soft loans to finance the purchase of everything from electronics, gifts, fashion accessories, beauty and skin care products, travel and healthcare.
The Zilla app, which is available on iOS and Android, has already hit the market, aimed at making a connection between users who want to obtain goods and over 4,000 sellers more seamless.
Through its business model, the company seeks to offer a faster and more formidable alternative for customers who are not willing to meet the limitations and strains of obtaining a credit card.
As Zilla seeks to enable consumers to make purchases and pay for them later, there is no doubt that the pay-as-you-go industry will expand significantly later. Many retailers around the world are now partnering with Buy Now, Pay Later (BNPL) apps to make it easy for consumers to make purchases on their websites.
A new report estimates that Buy Now Pay Later (BNPL) will account for $ 438 billion (5.3%) of global e-commerce transactions by 2025, as it will be the fastest growing payment method for e-commerce in markets such as India, Brazil, United States, and Great Britain
The payment method buy now pay later has been attributed to the increase in sales, which often reduces the number of abandoned cards on an e-commerce site. This payment method also makes consumers happy, as it gives them flexible payment terms that often make them feel empowered.
With Zillas Buy Now pay later payment method, combined with zero interest rate, it will undoubtedly give other competitors the chance. Its entry into the Nigerian market is very strategic given the high inflation rate that is ravaging the global economy, with Nigeria among the top countries with the highest inflation rate.
This inflation has reduced the disposable income of a large proportion of households in the country negatively. Members of these households will find this purchase now pay later very convenient for them, as a large percentage of them do not have the immediate cash outlay for payment of purchased goods.
Inflation continues to affect the purchasing power of consumers in Nigeria, therefore BNPL will often be the preferred choice for payment. With Zilla’s BNPL, shoppers can even buy a large number of products without necessarily having the immediate cash outlay.
