CIMB Bank has entered a strategic partnership with Fave to enable the latter’s buy-now-pay-later (BNPL) service, FavePay Later for its credit and debit cardholders. With this, CIMB’s total of 8.4 million cardholders will not only have access to the flexible payment option at over 15,000 merchant locations, but also the chance to enjoy stacked rewards from CIMB and Fave.

In a statement, CIMB said that this partnership will allow its customers to split their purchases with participating merchants into three interest- free instalments through the FavePay Later service (with up to RM4,000 FavePay Later credit). This is provided you pay on time; for late payments, FavePay Later charges a penalty fee of 1.5%.

Aside from that, CIMB cardholders who tap into FavePay Later will also be able to earn CIMB bonus points, as well as up to 15% cashback with their purchases at selected merchants. With regard to the cashback rewards that can be earned, it may be provided to you either as a partner cashback reward (which you must use with the same brand again) or a Fave cashback reward (which you can use at any outlets that accept FavePay).

If you’re interested to tap into this service, all you need to do is save your CIMB debit or credit card in your Fave app as a preferred payment option. Following that, make sure to select FavePay Later when you make payments at any Fave online or offline merchants.

According to CIMB, this collaboration was spurred on by the changing consumer spending behaviour in recent times, with retailers seeking to adopt not just digital payment methods, but also solutions that improve the accessibility of their products and services. Consequently, BNPL and online instalment plans have quickly grown to become a complementary service to normal credit card services.

CIMB also cited a research report that highlighted Malaysia as a regional hotspot for BNPL, with an estimated compound annual growth rate (CAGR) of 49% between 2022 to 2028.

In line with this, the chief executive officer of group consumer banking for CIMB Group, Samir Gupta said that the bank is excited to enter this fast-growing space with Fave as its partner. “This service [FavePay Later] provides customers with an alternative and flexible payment option as they transact digitally in today’s mobile-first environment. This partnership marks yet another step towards the convergence of innovation in digital payments with established banking platforms to better serve Malaysians,” he said.

Meanwhile, the chief executive officer of Fave, Joel Neoh highlighted that this collaboration has also opened up an opportunity for the platform to extend its BNPL service to debit card customers. “This collaboration has enabled us to extend this service to debit card customers that do not have traditional credit lines with financial institutions and improve financial participation,” he stated, adding that the partnership will also empower its retailers by growing their customer base and basket size, as well as retaining their customers via easy-to-use technology.

To celebrate this partnership, CIMB is currently running a campaign that offers up to RM30 cashback to customers who link their CIMB cards to the Fave app and shop with FavePay Later. Specifically, existing FavePay Later users will be able to enjoy RM25 off (minimum spend RM150, promo code “CIMB25”), while new FavePay users can get RM30 off (minimum spend RM100, promo code “CIMBNEW”). The campaign is set to run until 31 December 2022.

FavePay Later itself was rolled out back in mid-2021, aiming to tap into a market where cash-strapped consumers were seeking easier access to credit and merchants were looking for new ways to boost their sales. Some popular brands that have enabled support for FavePay Later include Al-Ikhsan, PUMA, Box of Bricks, Focus Point, and Jakel.

(Sources: CIMB, Fave)

• TAGS:
• BNPL
• BNPL Schemes
• BNPL Solution
• Buy-Now-Pay-Later Payment Solution
• Buy-Now-Pay-Later Schemes
• CIMB
• CIMB Bank
• Fave
• FavePay Later
• Joel Neoh
• Samir Gupta