KUALA LUMPUR (March 22): Payment solutions provider GHL Systems Bhd is partnering with fintech company Split to offer a buy now, pay later (BNPL) service for its merchant base in Malaysia.

This new service will allow businesses to offer their customers instalment payments with a choice of up to three monthly instalments sale, the group said in a statement today.

“BNPL is a payment solution that is fast growing in popularity in many developed markets but is still relatively new in Asean and is expected to gain in popularity,” said GHL.

Purchases made with up to three monthly interest-free instalments will be with instant approval, the group said, adding that the BNPL solution is expected to start piloting at selected merchants by the end of this month.

GHL said the partnership, which aims to benefit both merchants and consumers alike, will help boost sales and improve better cash flow as merchants receive full payment upfront from Split.

Consumers, on the other hand, can make instalment payments with any debit or credit card from any local bank.

GHL said the service is free for consumers with no interest, late fees, financing fees or any other hidden charges, thus making the purchase affordable and leading to higher sales conversion for the merchant.

“GHL is excited to launch this BNPL option to our merchant base in partnership with Split. BNPL will enable our merchants to sell bigger ticket items as their customers will have the option to budget their purchase over interest-free instalments and thus making it more affordable,” said GHL group CEO Sean S Hesh.  

“This affordability is timely due to the impact of the Covid-19 pandemic which has impacted the employment and earning capability of many. We hope this new solution will be beneficial to both our merchants in generating higher sales as well as helping their customers afford their needs,” he added.

Dylan Tan, co-founder and CEO of Split, said: “The past year has been tough for many Malaysians and Malaysian businesses. As many continue to struggle to make ends meet, business owners are facing challenges of their own, with cash flow, strong lead generation and the ability to scale being only some of the more common pain points."

“We are proud to partner with GHL to provide all parties involved with a win-win solution, thus ensuring that both merchants and consumers receive the support they require as Malaysia strives to recover from the Covid-19 pandemic and transforms itself into a digitally-driven, high-income nation," Tan added.

GHL’s shares closed one sen or 0.58% lower at RM1.70, valuing the group at RM1.94 billion. Over the past year, the counter has gained 95% from 87 sen.