Pathao CEO Fahim Ahmed, in a Facebook post on Wednesday, revealed that 35% of Pathao’s early access users have already used its new Pay Later service, the country’s first Buy Now Pay Later (BNPL) solution.
Pathao rolled out the service for selected consumers in the middle of last month.
According to Pathao, the new venture is addressing the issue of access to credit, which is limited with Bangladesh being one of the most underpenetrated markets for consumer credit in South and Southeast Asia, having only 1% of the population owning a credit card.
Young consumers, who have a limited salary or credit history, are the most credit-constrained.
Shuvo, who has been using the service recently said: “It was very convenient for me. Sometimes, my salary is late. Sometimes, I have to order food when my next paycheck has not made it to me yet.”
“I do not have to go on an empty stomach for that. Now consumers will get the service in advance for a change,” he added.
Also Read - Pathao introduces its ‘Pay Later’ feature
The country has over 25 million urban millennials living in the largest cities with rising income and fast technology adoption, increasingly spending online.
According to Pathao’s CEO, it has a user base of over 8 million, the vast majority being urban millennials including students and young professionals, who are continuously using their services.
“Our users are engaged. They are taking rides, ordering food, and receiving packages through Pathao multiple times each month. They are sometimes on a limited budget, as they wait for their salary to arrive,” said the platform’s CEO in a Facebook post from his verified account.
Pathao’s Pay Later service was launched for the platform’s most regular and loyal Pathao Food users with a 15-day initial spending limit of Tk2,000 ($23) with 30 days repayment period at no additional cost. The spending limit gets reset once repaid.
Pathao’s data shows that its users are enjoying services they would have otherwise held off with 95% of the early access users being millennials.
35% of these users have already used Pay Later, which is 3.5 times average weekly usage by active users.
Meanwhile, 25% of the active users increased spending on the platform, and 32% of dues have already been paid during the 15-day spending period, well before the due date, which is December 30.
Additionally, 7 times more people indicated an interest in the Pay Later feature.
The status also reads: “3 times more users will have the Pay Later feature and 31% of our active users will have double spending limit (Tk4,000).”
Even more, Pathao Food users will get the Pay Later feature soon.
Pathao CEO also announced Pathao will introduce Pay Later for Pathao Rides and Pathao merchant partners.
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