FDFC, the fintech company behind the digital credit app BillEase, and e-commerce firm Lazada have announced an interest-free installment on all essential goods to provide payment relief on a variety of products needed by consumers affected by the Covid-19 crisis.
The limited zero-based financing enables consumers to avail interest-free installment credit solutions through their Lazada Wallet.
Essential goods purchased on the Lazada platform and paid through BillEase will enjoy a zero-percent APR and pay later option up to three months. The offer aims to mitigate the burden of consumers during the crisis and encourage customers to use non-cash payment options as Cash on Delivery (COD) payment method has been temporarily suspended, leaving limited payment options to customers.
“We are taking extraordinary steps to alleviate consumer pain points at this difficult time,” said FDFC chief executive Georg Steiger. “In addition to extending payment deadlines and suspending penalties, we’ve partnered with Lazada to provide customers an option to defer payments in all essential products with zero interest and encourage the use of cashless-based transactions to minimize the risk of spreading coronavirus infection and ensure the practice of physical distancing.”
The limited offer is an extension of the fintech company’s consumer installment payment platform which gives shoppers the ability to pay for purchases in monthly installments using their existing BillEase accounts. New customers can avail the offer without credit cards for zero-interest transactions.
After creating a BillEase account, users can choose to fund their Lazada Wallet as a top-up option. Once triggered, the installment plan is activated, and they can use the funds to purchase for essential products. The entire process is instant to consumers with credit lines and terms continuously growing after successful repayment.
The limited offer, which runs from April 1 to April 15, 2020, imposes no interest, charges only a small processing fee, and is more accessible than a conventional loan for consumers that speeds and eases both payment and reorder processes.
The financing offer comes as several e-commerce platforms suspended intakes of non-essential goods in an effort to help stem the spread of coronavirus. With business closures and physical distancing in Luzon, more people are turning to online retailers like Lazada which offers financing options.