Paylater Service from Singapore "Pace" Airs, Starts Glancing at the Indonesian Market

A startup fintech New Pace Enterprise launched in Singapore. Founded by Turochas "T" Fuad who is also known as the founder Spacemob [acquired by WeWork in 2017], this startup offers paylater which aims to bring financial access and inclusion to underserved segments of the Asia Pacific region.

DailySocial interviewed Pace regarding the launch of this service, they mentioned the BNPL industry (buy-now-pay-later) who is still very new to Southeast Asia but optimistic that it is only a matter of time before paylater dominate as a payment method. This is driven by consumers' desire to have more control over their spending.

Quoted from e27, “The reason we launched Pace --and our long-term goal-- is to create a platform fintech a broader and more inclusive digital platform that empowers underserved populations. To achieve this, BNPL is the right first step that flexibly and seamlessly expands customer purchasing limits while giving merchants access to financing alternatives and entirely new customer segments,” said Founder & CEO Pace T. Fuad.

This service has successfully raised early stage funding with a value of so-called "high seven figure" or approximately $6 million to $9 million led by Vertex Ventures and Alpha JWC Ventures. These funds will be used to better develop its platform and offer progressive services and solutions to consumers and merchants.

business model

Pace started rolling in November 2020, using a financial profiling algorithm. The platform will match customer profiles with the most suitable spending limit allowing them to split their purchases into three interest-free installments.

The company also claims to have quickly added more than 300 points of sale from more than 200 merchant partners, including Goldheart, OSIM, Sincere Watch, Carousell, Reebonz, and FJ Benjamin.

BNPL is believed to be one of the solutions that can be implemented by various groups, because it provides a way for businesses to increase revenue by reaching new audiences in all industries.

In Indonesia alone, there are already several companies fintech who provides service paylater. Its implementation appears in many applications, from digital wallets, ticket bookings, to the most popular on the platform E-commerce and / or online marketplace.

He added "We also believe that each country's unique culture will drive differences in the use of BNPL among various sectors. However, we have seen a lot of traction in the service, fashion, and sports & fitness categories all of which are sure to continue to grow as BNPL's popularity in the industry continues to grow. between consumers."

Future goals

Based on a study from Coherent Market Insights, pass paylater global growth is expected to grow from US$5 billion in 2019, to $33.6 billion in 2027, with an average annual growth rate (CAGR) of more than 21.2%.

His party also stated that in addition to BNPL services, Pace also plans to develop a whole series of solutions fintech that will help businesses and consumers alike. The company targets to reach 5000 trading partners by the end of 2021 through its geographic expansion to North Asia and throughout Southeast Asia.

Currently Pace is available in Malaysia, Thailand, and Hong Kong. However, it is possible that they will spread their wings to Indonesia, given Alpha JWC's involvement in the initial round.

"We strongly believe in Indonesia and the potential impact we can make there. We have ambitions to become a global player one day, but we know that we have to be ultra local (from products to services) when we enter every market. best to develop quickly and we will try our best to get to Indonesia as soon as possible," said Pace's representative.

Like most products fintech, market share will always be changing, with opportunities for new players and new innovations emerging. It added, "What is important to us is that our products and offerings are developed with sustainable spending in mind. We believe that is the key to achieving financial inclusion and accessibility for everyone."

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