Last month, TFG launched the financial product Tyme Bank at the Jet store.
- Jet is the flagship brand for MoreTyme’s rollout in November, with the rest of the brands rolling out in 2022.
- Instead of relying on TFG’s ongoing lay-by, shoppers can pay a 50% deposit on the item, receive the item, and pay the remaining balance interest-free for three months.
- TFG already offers financial services, offering 13 insurance products in addition to store cards, while More Tyme is stepping up its group offering.
Leyby is an important part of South Africa’s shopping culture, but retailer Foschini Group (TFG) is rocking its strategy by adding it to its service in the hope of attracting a new generation of shoppers.
With brands such as Jet, Sportscene, Fabanii, Markham and G-Star Raw, the group recently signed a deal with digital bank Tyme Bank. This gives shoppers the ability to buy now and pay later.
Garrettda Silva, Head of Financial Services at JetStores, said shoppers could pay a 50% deposit on the item, receive the item and pay three or more of the remaining balances instead of the group’s continued layby. explained. No interest for the period of the month.
“Globally, this [buy now, pay later] Especially for the younger generation, it quickly became satisfying. You don’t have to wait three months, “says da Silva.
Jet is the flagship brand of MoreTyme’s rollout in November, with the rest of the brand rolling out in 2022. TFG acquired Jet in 2020 to gain access to the low-income market.
For years, jet shoppers laid their clothes and wore New Year’s uniforms prior to the festive season. But now they leave by paying later for apparel and other products sold in stores.
TFG already offers financial services, offering 13 insurance products in addition to store cards, while More Tyme is stepping up its group offering.
Shanevan Niekerk, MD of Jet, said: [we have] 2.5 million people in need of some form of credit, or some form of insurance … or financial services. These are available at a much lower rate than going to a formal institution. “
He added that MoreTyme is not a product overload, but instead simplifies shopping and offers consumers another payment option. And it’s not an extra burden for retailers with additional risk.
“Everything goes through the system, so it doesn’t put an extra burden on us. It’s just another payment method,” said Van Nikelk.
In addition to the benefits of buying now and paying later, shoppers also have access to affordable transaction banking and TFG / TymeBank debit cards. TFG’s long-term plan is to add personal loans to the mix.
For Tyme Bank, which focuses on affordable banking, partnerships mean expanding its reach. And the group is responsible for having to follow up with late payers and the risk of non-payment.
However, Da Silva warned that shoppers who want to try MoreTyme will have to go through a credit process that includes checking and verification and may be rejected. However, this process is not as rigorous as the process of getting a loan, store, or credit card.
Tyme Bank is also Penalty for late payments and 2% interest on omissions.
Wayne McCulley, Portfolio Manager at FNB Wealth and Investments, said the partnership is good for both TFG and Tyme Bank, but banks are the most beneficiaries.
“There is only one place to make money at a bank. It’s about lending money. Especially the new banks Bank Zero and Tyme Bank don’t make money from transactions.
“One of their selling points is very low transaction fees, and you can’t make money from transactions, especially if you’re competing to the bottom with the lowest fees,” McCulley said.
How TFG plans to capture new parts of the market through a partnership with Tyme Bank