Retailer Pick n Pay has announced that it will allow customers to purchase their groceries on credit.
The service, which designed in conjunction with credit company RCS, will enable customers to pay for their goods at a later date on a card with no joining fees and low interest rates.
This marks a significant move by the company as it follows both Massmart and Woolworths in allowing customers to purchase items using in-store credit.
It also follows a series of new payment tests by the company in recent months, including self-service checkouts as well as allowing certain purchases using Bitcoin.
The credit facility will be accessible through the current Smart Shopper card.
The amount of credit that you will granted is based on individual circumstances, with credit limits ranging from R1,000 to R40,000.
Pick n Pay’s deputy CEO, Richard van Rensburg, said: “The high cost of credit is a significant reason why customers have less disposable income for their grocery shop. Hidden costs such as initiation fees, administration fees, mandatory insurance fees and penalty fees exacerbate the cost of credit. We have worked with RCS to design a product that has none of these hidden fees and the lowest possible monthly fee.
“Pick n Pay will not earn income from the credit granting process. We have negotiated a great offer from the credit industry for our customers,” he said.