PayJustNow, the payment platform, is playing an important role in supporting the country’s construction sector with responsible credit solutions by expanding its offering to Builders.
This is in a drive to not only help consumers manage their home improvement planning, but importantly offer SMEs an additional option when it comes to purchasing materials without exhausting their cash flow.
The construction and hardware retail category has faced significant challenges over the past few years. Since 2018, there has been a steady decline in consumer spending in the sector due to economic uncertainty as well as higher import costs.
Furthermore, recent Stats SA data shows the construction sector experienced a 0.2% reduction in employment during Q2 2024.
However, there are positive signs. In the same quarter, the industry’s contribution to the GDP increased by 0.5%. This was driven primarily by heightened economic activity in residential and non-residential building projects.
Flexible repayment options
Additionally, the rebound has been fuelled by consumer adoption of innovative financial solutions like BNPL. This provides them with flexible repayment options that make home improvement more convenient and accessible.
“Our partnership with PayJustNow aligns with our commitment to providing value and convenience to our customers,” says Riaan Nieuwoudt, executive for membership and services for the group.
“Our Builders customers, from DIY enthusiasts to professional contractors, now have a smart way to access the tools and materials they need while managing their budgets effectively.”
The construction industry’s backbone lies in its SMEs, which often face cash flow challenges due to delayed payments or extended project timelines. With convenient and flexible payment options, SMEs can purchase necessary materials and equipment upfront without straining their finances or even incurring interest with BNPL.
“Small businesses are the lifeblood of our economy, and PayJustNow is committed to providing solutions that help them succeed,” says Greg van der Riet, chief commercial officer at PayJustNow.
“Our platform enables contractors to maintain a healthy cash flow, ensuring they can complete projects efficiently and take on new opportunities without taking on any additional financial strain.”
A benefit to both retailers and SMEs
This platform has become an ecosystem that benefits both retailers and SMEs by helping retailers showcase and sell their product range to contractors that want to purchase more conveniently, while contractors can browse a variety of suppliers, as well as deals on offer.
Similarly, as consumer behaviour evolves, retail on-demand models have become a necessity. Customers expect greater convenience and flexibility, whether shopping online or in-store.
Platforms like PayJustNow provide them with more choice, and the ability to spread payments over time, making it an essential tool in boosting retail performance.
“Traditionally, the start of a year is a time when many homeowners embark on renovation projects and contractors gear up for a busy period. The partnership between PayJustNow and Builders ensures that consumers and contractors alike can start the year on a strong footing, accessing the products they need without straining their budgets,” says van der Riet.
“This while helping the construction retailer increase sales and improve customer retention.”
“This partnership is about building better lives and stronger businesses. We are proud to provide a platform that empowers South Africans to achieve their goals, whether they are upgrading their homes or growing their construction businesses,” concludes van der Riet.
