The app development process has received many alterations and one of the most useful is buy now, pay later (BNPL) platform. In this platform, providers receive enhanced interest from businesses, consumers, and merchant partners. That further leads them to market growth and increase new funding and generate much more revenue.
As we all know that boosting shopping via smartphone has been a challenge for retailers, as there has been a strict competition around. However, one of the most painful hurdles has been to stop consumers abandon their carts before paying.
As per a study, the global retailers on average receive 86% cart abandonment. And the reason is the different steps consumers have to follow to complete the process of buying.
How the BNPL solution is solving the purpose?
Yes, indeed BNPL- buy now pay later, holds the key to solving the conversion issue across the geographies and can solve mobile shopping hardships to a great extent. You should know that now customers are not simply happy with a mobile-friendly website, and they look for something that can resolve their woes of checkout experiences. Consumers are not willing to invest their time in the mobile checkout processes, and they find it frustrating and time-consuming. On the other hand, 37% prefer to abandon carts, as they have to type their addresses, billing information, and payment details through their small smartphone screens.
In such chaotic situations, BNPL brings a wave of relief, letting users access ease of use and transparency. And these two factors are of great interest to millennials and Gen Z shoppers.
BNPL provides a payment option to customers, where they can pay for products after the point of purchase.
In this run, one of the most promising BNPL startups Shahry has raised $650,000 in pre-seed funding, let’s explore more with this post.
Cairo-based digital lending startup Shahry
Yes, you heard it correct, Shahry has emerged as a promising platform, after building its product range for over a year. And has raised $650,000 in pre-seed funding from the investment arm of Egbank, a leading Egyptian bank.
As per the reports, this is the very first time, when an Egyptian bank has invested directly in a local fintech.
What you should know about Shahry?
Shahry was founded in early 2019 by SherifElRakabawy& Mohamed Ewis, it offers an AI-based credit scoring engine, that further allows users to apply for virtual credit through its mobile app. And this credit can be used to purchase different products without leaving Shahry’s app. Users get the option to buy products from different online shopping platforms and stores, including Souq.com, and users can pay for these products in monthly installments.
How does this app work?
The Shahry app follows a simple process, where it requests for some details from the users on a single page. On filling the information, users receive a confirmation about the status of their application within a day.
How Shahry is different from other BNPL startups?
Generally, BNPL works with eCommerce platforms to offer their service, however, Shahry has picked a different approach, by letting its users browse the products and checkout on its app without going to other websites or apps. This helps the consumers to get everything under the sun from the Shahry app only, and for the return process also, users need to get in touch with Shahry to help them submit the request to the store.
Shahry app- is a revolution in the shopping industry
The inclusion of shopping within the app is a deliberate action to offer the users a seamless user experience. It further opens a successful revenue stream for Shahry as it lets users charge their merchants a commission on every successful sale. It also charges the users with interest for providing them the credit.
On the other hand, users who are making purchases through Shahry can pay their monthly installments on Fawry, Aman, or Bee outlet, or they can use their credit card or Vodafone Cash (mobile wallet). Surprisingly, the startup also provides cash collection at homes.
A financial win for Shahry
You can notice that majority of users using Shahry’s service are un or underbanked. This makes Egyptians not having access to a bank account to get the services, without being troubled.
Further, the association of Shahry with Egbank, will help them to leverage the bank’s expertise in credit risk, raising loan capital. Indeed,Shahry holds great potential in the area of financial non-banking services in Egypt. And this app will be at the heart of Gen Xers who are willing to make the most out of their shopping through online mode.
With this funding, the startup aims to grow its loan portfolio and scale the business.
Shahry and coronavirus
As we all know that coronavirus has upended the world economy, the wave of BNPL start-ups has benefited the consumers from every possible way. They have offered consumers to get easy access to funding and light-touch regulation to supercharge their global growth. No doubt, the financial impacts of the coronavirus are mirroring of the great recession. And this has brought a need for welcoming alternative payment methods, where there are no incurring fees, interest, and further debt from credit cards or personal loans. And this is where BNPL platforms like Shahry creating a difference, and helping consumers to meet their demands.
Food for thought
Indeed, the mobile app development process is vast and evolving massively with time. And multiple app options are helping users to bite the dust off from the COVID-19 outbreak. As we all know that economic uncertainty is growing and giving consumers enough jerks at different levels, it is necessary for the app technology to embrace the much comforting options for the users.
With buy now pay later options, users get a choice to buy the variety of essential items and pay as per their convenience in the smaller payments over time without increasing the load on their credit card debt.
Ankit Singh is an ambitious entrepreneur who has set a remarkable difference in the app development turf, with his innovative ideology and creative spark. Apart from having a knack of technical advancements, he also has a taste writing and loves to share technical tips happening in the tech industry.