Young South Africans are the fastest growing group of online shoppers in the country and it is imperative to provide this group of digital natives with access to credit.
As part of its push for financial inclusion in Southern Africa, RCS, the consumer credit arm of global bank BNP Paribas, has announced its acquisition of South Africa’s leading online credit provider, Mobicred.
On its most recent acquisition, RCS CEO Regan Adams says there has never been a better opportunity to harness the accessibility and convenience that the South African e-commerce environment has to offer. to offer.
“Our acquisition of Mobicred enables us to better meet the needs of South African consumers who require a more diverse suite of credit solutions to help them access and manage their purchases. The acquisition of Mobicred was the natural next step in RCS’s digital transformation strategy and perfectly complements our existing offering, as we enable our customers to switch to shopping on the channels of their choice, whether in-store or in line.
Connected to a network of 4,000 online stores
Mobicred offers merchants a transparent credit facility for their customers. The Mobicred platform is currently integrated into over 4,000 online stores across South Africa, providing a real-time secure payment option. Mobicred account holders have access to exclusive promotions on a range of online stores and enjoy full control over their credit health, from payments to receipt of statements.
In addition to South Africa’s leading e-tailer, Takealot.com, other popular online shopping sites available on the platform include iStore, Incredible Connection, BidorBuy, Superbalist, Hifi Corporation and Sportsman’s Warehouse. Its network also includes a flower and gift delivery service, NetFlorist; health and pharmacy brands like Dis-chem, Clicks and Wellness Warehouse, and travel providers like Travelstart and Lift Airlines, with a range of flexible reimbursement options available to customers.
With the acquisition of Mobicred, RCS will accelerate its growth in the e-commerce ecosystem by adding new bespoke brands to its already well-established retail network of over 28,000 stores. The acquisition also enables the group to tap into new customer segments, with a particular focus on Generation Z and Millennials, the biggest proponents of online sales in South Africa.
Pioneering virtual credit offer since 2013
Founded in 2013, Mobicred’s offering of a single credit account for all of a customer’s online shopping needs has cemented its position as the country’s pioneering virtual credit provider. Mobicred was a pioneer and early adopter, and successfully scaled its business, preparing it to take advantage of the country’s transition to e-commerce, which has been dramatically accelerated by the pandemic.
“As part of the global BNP Paribas group, we are constantly on the lookout for innovative technologies to improve the customer experience and strengthen our commitments. It is important to keep abreast of new fintech developments and to embed innovation into every touchpoint of our business. Our main goal is to bring together the best of both worlds, combining our physical in-store footprint with our digital capabilities to create synergies within the retail environment,” says Adams.
He adds that consumers’ financial needs will be met wherever they are, physically in store, day or night. Consumers will have a more diverse product range at their fingertips, allowing them to choose items tailored to their specific needs.
Online retail environment – a platform for easy access to credit
“Mobicred is a critical next step in unlocking this value. Exciting opportunities are opening up in our transactional realm for our retailers and their customers. We are here to join in this journey. future in an environment of continuous disruption and evolution, allowing us to expand our retail horizons.
“The company was founded on the idea that credit should be easily accessible in the online retail environment in the same way it is available in the physical store environment,” adds Jason Sive, founder and CEO of Mobicred. “Shortly after launching the business, customer behavior immediately validated demand for alternative payment types and the rapid growth of our customer base helped the business achieve 70% year-over-year growth. the other.
“We were able to solve a significant problem for the South African market where demand for an alternative to traditional credit cards has grown exponentially over the past few years.
“Our integration into the RCS offering will enable us to support the desire to make credit more accessible, user-friendly and transparent. We will work together to introduce innovations that will transform the future of the credit environment in South Africa,” said Sive said. .
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