Shangri-La Hotels and Resorts and tied up with fintech solutions company Pace Enterprise to introduce a "Buy Now Pay Later" option at participating hotels in Malaysia. Hotel guests can now split their payments over three months, interest-free. The new payment option encompasses services available within the establishment, including hotel stays, dining, as well as wellness services, such as massages or spas.
To make a payment, guests or patrons will simply need to choose and complete the transaction using the Pace mobile app at any Shangri-La payment terminals. New Pace users will need to register for an account before they can make any payments. Pace users can also enjoy exclusive offers and discounts for various Pace merchants.
Pace is currently available at Shangri-La Hotels and Resorts in Malaysia for over-the-counter payments only and for Malaysia, Singapore, Thailand and Hong Kong card holders. To date, the company has over 5,000 points-of-sale across Asia and is on track to meet its goal of one million users by year end. Pace also aims to have an annualised GMV of US$1 billion by the end of 2022. A+M has reached out to Shangri-La for additional information.
Katie Roberts, director of marketing, Malaysia, said Shangri-La strives to offer an environment whereby guests can live, work, play, and rest well while creating memorable experiences.
"With Pace's BNPL solution, we can offer a wider range of payment solutions and allow our guests to enjoy much-deserved rest and relaxation with the Shangri-La experience in a flexible and convenient manner," she added.
Meanwhile, Pace's founder and CEO, Turochas Fuad, said the foray into hospitality tourism is a key milestone achievement for Pace as it continues to expand its reach.
"In time for a rebound in travel and tourism, we are looking forward to supporting it by providing flexible payment solutions. We are excited to partner with an iconic brand such as Shangri-La Hotels and Resorts to enable foreign and local tourists to have that flexibility to enjoy their dream getaways without compromising their budgets," Fuad added.
While Fuad was unable to disclose the monetary breakdown of the partnership, he told A+M that as the world slowly emerges from the COVID-19 pandemic, the company is expecting to see an uptick in travel activity this year.
With more people travelling and seeking accommodation, BNPL payments will increasingly become a helpful payment solution that’s flexible and convenient, he said. "Additionally, tapping on BNPL solutions such as Pace would allow hotels to reach a wider pool of potential guests, including younger audiences or gig economy workers who aspire to travel frequently. Alternative payment solutions enable new audience segments to enjoy well-deserved holidays without compromising their budgets, and strengthens our commitment to democratising financial services across Asia," he added.
The global Buy Now Pay Later market size is expected to hit US$3,268.26 billion by 2030, according to market research and consulting firm Precedence Research. This marks a compound annual growth rate of 43.8% from 2022 and North America is the largest segment for Buy Now Pay Later. Asia Pacific is also the fastest-growing region in the Buy Now Pay Later space. As a result of the rising cost of numerous home appliances such as washing machines, smart televisions, and music systems, Precedence Research said the Asia Pacific region is predicted to rise at a high rate during the projection period.
Separately, just this week, Pace rolled out its first-ever virtual Pace Card, a payment solution designed to make BNPL payments even simpler and more secure in Asia. The Pace Card offers consumers the same control, flexibility and security when making BNPL payments as one would with a physical card. At launch, consumers will be able to use the Pace Card for all online purchases with Pace’s merchants, with in-store payments soon to follow.
The Pace Card can be activated instantly without any fee via the Pace app. It is also connected to Pace Perks - Pace’s loyalty programme - to enable consumers to gain more benefits when they shop using the virtual card.
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