All financial risks, including payment defaults, are borne by the BNPL brand and do not affect OxPay, the company said.
OxPay Financial is partnering with Malaysia-based retail buy now pay later (BNPL) company PaySlowSlow Singapore to provide the brand with payment gateway and merchant acquiring services.
A subsidiary of ASX-listed Fatfish Group Ltd, PaySlowSlow allows retailers to offer their customers the option to pay in four equal installments over four months with 0% interest charged.
Launched in September, PaySlowSlow Singapore targets to roll out its services for consumers in 1Q2022, with 500 merchants and a monthly gross transaction value of approximately $1 million. This is expected to translate into additional processing volume for OxPay.
All financial risks, including payment defaults, are borne by the BNPL brand and do not affect OxPay, the company said in a statement.
With the pandemic accelerating e-commerce volumes, consumers are increasingly turning to BNPL options to alleviate their financial pressures, as well as to conduct their online transactions with greater ease and convenience, said OxPay managing director Henry Tan.
“BNPL offers a tremendous and growing market opportunity for retailers and payment providers alike, and barring unforeseen circumstances, we look forward to robust take-up rates for this service.”
OxPay’s wholly-owned subsidiary MC Payment (M) Sdn Bhd had recently entered into a partnership agreement with IOU Pay (Asia), subsidiary of another ASX-listed company IOUpay Limited.
Through the agreement, OxPay would add the BNPL option into its online e-invoicing, quickpay and web payment acceptance platform in Malaysia.
Shares in OxPay traded flat at 23.5 cents on Dec 16.