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Start-up of the Week: The ‘du-it’ revolution in Malaysia’s BNPL scene

Du-it BIZ is all about allowing business purchases to be paid in interest free instalments

In today’s episode of the “Start-up of the Week,” International Finance will talk about du-it, a Malaysia-based Islamic Fintech company which provides instalment solution to SMEs and MSMEs using the ‘Buy Now, Pay Later” model (B2B BNPL).

The venture, established in 2020, provides instalment solution for businesses covering both business-to-business (B2B) and business-to-consumer (B2C) transactions with its state-of-the-art platform.

“Our holistic solution caters for both online and offline payments through a wide variety of payment channels (omni-channel). With our collective experience of over 20 years serving in the financial services industry, du-it is on a mission to offer a smarter way of living by catering to the unique needs of every individual to achieve financial convenience,” the venture stated further.

Knowing Things In Detail

Du-it first hit the headlines in December 2022, as it got investments from a fund named TIM Ventures, which was set up in the same year to invest in emerging start-ups in the insurtech and Islamic Fintech space in Malaysia.

The RM45 million venture capital fund has been set up by Hong Kong-based insurance company FWD Group and Malaysia-based firm Artem Ventures.

Du-It, along with four other start-ups, Senang, Pewarisan and Blueduck, got the funding through the VC fund. Now talking about Malaysia’s Buy Now Pay Later (BNPL) industry, current trends indicate a robust growth trajectory, as the sector is projected to achieve a gross merchandise value of USD 2.78 billion in coming months, thereby representing a striking annual growth of 17.5%. By 2029, the BNPL market is expected to further expand to USD 4.76 billion.

The sustained growth comes amidst a surge in e-commerce activities throughout the country, leveraging an increasing consumer preference for flexible financing solutions. The BNPL payment platforms, on the other hand, have proven to be particularly popular, offering convenient short-term loans that complement the modern consumer lifestyle.

The surge is also underpinned by key performance indicators revealing an uptick in transaction volume and average value per transaction, pointing to BNPL’s growing adoption for a variety of purchases—from routine retail shopping to sectors such as home improvement and travel.

Du-it is looking to transform this thriving sector completely through its two solutions: “du-it BIZ” and “du-it B2C.” We will talk about these solutions in detail.

Instalment Solutions For Businesses

“Du-it BIZ” is all about allowing business purchases to be paid in interest free instalments. The solution allows B2B manufacturers and wholesalers to get paid upfront, while their business customers can pay in interest-free instalment with pre-approved credit limit.

The operational backbone of “du-it BIZ” is a “Digital B2B BNPL Platform,” which provides a seamless end-to-end digital experience for businesses which is secure and easy to adopt. The solution also Caters for both online and offline payments through a wide variety of web and mobile payment channels. Most importantly, “du-it BIZ” is one of the first Shariah-Compliant B2B BNPL covering a wide range of industries.

Partnering through “du-it BIZ” also helps businesses to increase customer loyalty and sales conversions, by providing payment flexibility for the customers. The businesses can make a sale and get paid upfront without having to worry about credit risk. Another benefit of opting “du-it BIZ” is the solution’s seamless API integration, which covers a wide variety of web and mobile commerce channels all at no cost.

By offering white-label BNPL solution under the “du-it BIZ,” businesses can give their customers the freedom to divide their payments into four equal interest-free instalments, which, in turn, will increase the Sales conversion rate at the point of checkout and avoid high fall-off rate. Also, the interest-free instalment payment option will promote quicker and more consistent sales among the established consumer base, apart from cultivating strong customer loyalty.

Benefits For Customers Too

Using “du-it B2C,” customers can pay and transact in a secure environment with du-it’s state-of-the-art technology without any worries, apart from having the freedom of using the start-up’s platform both online and in-store (offline).

In an “In-Store” environment, customers can pay using du-it at checkout by scanning the QR Code. In the “Split Payment” mode, the customers can choose to pay between four equal monthly instalments with no interest. When it comes to using “du-it B2C” online, the customers get the added benefit of tracking their expenditure history via the “du-it B2C” app.

“Du-it allows you to shop stress-free with no hidden costs. Split your purchase over four equal payments with no interest. Pay only 25% and get what you love, right away. We make shopping fun. It’s your choice,” the start-up commented further.

The Way Ahead

With a robust growth forecast and expanding consumer adoption, Malaysia’s BNPL industry will redefine retail and consumer financing. The BNPL movement in the Southeast Asian country is signifying a pivotal shift in consumer finance, catalysing new opportunities in the digital economy in the process.

By embracing innovation and adapting to consumer needs, BNPL in Malaysia is charting a course towards a dynamic and promising future. Expect du-it to take a leading role in this journey.

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