Paying for goods using the lay-by payment method has been part of the South African retail landscape for years. Then local tech start-up Payflex brought this tried and trusted payment method into the digital age, by allowing customers to buy online now and pay later in four equal instalments with a 0% interest free payment plan.

Now, Payflex has partnered with digital banking platform Spot Money – which means Spot users can shop anything from beauty brands to music goods to fashion on Payflex, without even having to leave their Spot Money app.

The new offering will come as a boon to cash-strapped consumers, says Spot Money’s CEO, Andre Hugo. “We’re a highly indebted society, with most South Africans battling to make ends meet towards the end of the month. With zero interest payment plans, this service will allow our users to manage their money better and have a little bit extra in their pockets at the end of the month, hopefully reducing their levels of indebtedness,” says Hugo.

Using Payflex via the Spot app will also give thousands of Spot customers the ability to start developing a credit score for the first time. By making regular repayments on their purchases, they will be building up a credit history (minus the interest trap), that will be important when taking out credit for homes, cars, education etc. in future.

Paul Behrmann, founder and CEO of Payflex, says that payment plans in the retail sector are not new. “However, non-interest options like lay-by mean that the store holds the product until it is paid in full. Payflex consumers receive their orders immediately after paying just 25% of the cost. SA’s shoppers clearly love buy now pay later and overwhelmingly choose it over standard payment or credit options, according to our research,” he says.

The partnership with Payflex is the latest move by Spot to not only offer customers transactional banking that’s easier, a fee-free Spot Money account and rewards when they transact but also a marketplace for all their lifestyle needs, all in one app.