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If you are careful about buying a 3,000 -US leather bag online, why not pay the entire amount in a lump, pay only one -third of the amount, and divide the balance in the next two months.See.Moreover, if the payment of the balance is paid on the deadline, it is provided by a free service with no split interest interest.
For many people, this installment option will affect the division of whether to actually purchase or delete the cart.
Singapore -based startup HOOLAH offers such installments services, and the company's services have increased their average transactions by nearly 50 %, and the store has increased by 35 % for the store.。
The company, established in 2017, is a part of the growth trend of the "postpaid" platform aimed at millennials.This is one of the fastest growing fields in global e -commerce.
Recently, the company announced eight digits, or tens of millions of dollars -scale series A, but investors include GENTING VENTURES, a subsidiary of international companies, and former Lazada CEO Max Bitner.The funds will be used to expand business in Malaysia and launch the company's Omni Channel strategy.
Partnerships with Konglomarit, Malaysia, who work on hotels, theme parks, and cruises all over the world, will also accelerate their ambitions of traveling and entering the leisure field.
For the Hoolah co -founder Stuart Thornton and Arvin Singh, the demand for millennials is universal.
The only thing to pay attention to is the ability to pay.What matters is the customer's cash flow, which is also a change in the younger generation who will prefer a debit card over credit.(THORNTON)
Post -payment services are growing in Indonesia, where many layers do not have a bank account, but the fact that Affirm and AfterPay also have great potential in maturity markets.
Affirm, established in the United States, provides services to over 3,000 retailers, but half of customers are millennials or Z generation.
Startup services such as HOOLAH are basically the same as those that credit cards already provided, but they are very different.Installation of zero interest rates will be attractive to consumers hesitant for purchasing high -priced products at once (or cases where they cannot be purchased at once).In many cases, platforms like the company are more transparent for additional costs for payment delays.
For example, HOOLAH has a total of more than 1,000 Singapore dollars (about 75,000 yen) of the remaining amount of the delay of 30 Singapor dollars (about 2,300 yen), and the delay of the delay is smaller.Singh says that the company's delayed money is not a business sales, but to encourage the right repayment in the future.
The above is less risky compared to an average of 20 % that Singapore credit cards can be imposed as a delay.In addition to the delayed money, the complex interest structure of the credit card will quickly fall into debt spirals.
Companies such as furniture retailers also offer installments plans.One of them is a furniture retailer COURTS, but the annual rate has at least 11 % interest.Nevertheless, customers can choose to pay up to 60 times.
Another example is that Australian furniture retailer Harvey Norman provides a zero income rate installment plan for purchases over 500 Singapore dollars (about 38,000 yen), but the number of credit cards available is limited.Installation payments are not common in general consumer products other than furniture retailers.
On the other hand, HOOLAH services have expanded installments into new fields.The company has a partnership with over 300 retailers, including fashion accessories, electronics, furniture, and skin care, up to three months in installments.
The company's services can use Master Cards or VISA cards, which are issued by any bank.
HOOLAH's customer retailer is also free from the risk of credit and fraud in transactions, and can receive full payments at once.The company has not disclosed the cost of this service.As a benchmark, Melbourne's post -payment service company is an average of 3 to retail stores..8 % commission is imposed for each transaction, and affirm imposes 2-3 %.
Traction to post -payment service companies is high, but profitability still remains.
AfterPay, which is deployed in Australia, New Zealand, the United States and the United Kingdom, is growing remarkable sales.The company's total income was $ 220 million (approximately 141), which grows 96 % per year in the first half of the fiscal year, which was closed in December 2019..It is 700 million yen).
This is due to pure sales or growing 106 % on the entire platform as a total transaction amount, and has more than 7.3 million in synchronous active customer.Last August, the company said it had earned 12,500 new customers per day.
However, the expenditure in the first half of the year remains high, and the operating cost is 3 times more than the same period of the previous year (about 51)..On the other hand, EBITDA (operating income before tax dwelling and before paid interest), which adds depreciation expenses to the current term of tax before tax), decreased by 51 % year -on -year to 680.Australian dollar (about 4).400 million yen).
RBC market analyst Tim Piper states:
Compared to our expected values this season, it was a good result in many points, such as business size, number of customers, stable retail commission margins, and loss rates.However, except for EBITDA.
Hoolah has not disclosed the total distribution, but the company has grown 15 times from 2018 to 2019.
Last year, AfterPay was a strategic partnership with the Giant US Payment Company VISA to develop innovative payment solutions and support business growth in the United States.This is the event after AFTERPAY has entered the US market for a whole year and has achieved a 1 billion dollar (about 600 million yen) transactions.
In June of last year, VISA also launched installments, and card issuers and retailers could provide installment payments to customers with existing VISA cards.
Taylor Carmichael of The Motley Fool said in the article:
From my point of view, this is a serious problem for VISA.(Omitted)
If AFTERPAY wins (like doing so) in the millennial market, that's the future image.It is clear that VISA has announced that he will enter the business model in late June, acknowledging his usefulness of his afterPay business model.
He predicts that somewhere in giant financial companies such as VISA, PayPal, Square or American Mega Bank will be acquired in the future.
In that sense, MasterCard also has a strategic partnership with banks and fintech companies.In Australia, he is a MasterCard tie -up and provides an installation plan with zero interest rates to shareing technology, data and services, etc., the executive VP in charge of MasterCard's Asian Pacific Regional Product Innovation Team.Sandeep Malhotra tells his Tech in ASIA.
In such a situation, HOOLAH is confident that the localized approach specializes in each market will become a weapon for huge payment companies.
We have a deep relationship with consumers.This partnership with the investor will definitely strengthen it.(SINGH)
[Via Tech in Asia] @Techinasia
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