Last year, Pick n Pay launched a facility to allow customers to get groceries on credit.
Today, a report by BusinessTech reveals that the giant retailer has so far granted R1 billion total credit to shoppers since it launched.
The facility is available through the Smart Shopper card programme, and customers are able to purchase groceries on credit up to R40 000.
“The account is accessed through the customer’s Smart Shopper card, with the credit provider carrying all associated funding costs and credit risk. Since the launch in September, 56,000 store account holders have been approved and just over R1 billion total credit has been granted,” Pick n Pay said in a statement.
So what happens when you can’t pay; BusinessTech reveals that when a customer fails to pay their dues at the end of the month, they will be charged an interest rate on daily basis, and compounded at the end of the month.