e told Inside Retail. He went on to say that the company is encouraged by the 150 per cent year-over-year growth in retail spending that ShopBack garnered in Q4 2022 compared to Q4 2021, driven in large part by the success of its ShopBack PayLater service. “ShopBack PayLater specifically saw a 50 per cent gross merchandise value (GMV) growth in Q1. We are also expanding rapidly with more than 6 million customers in Malaysia as well as 2,000 merchant partners which we are growing as we speak,” he added. Things are looking up Han noted that the company’s growth has been helped by the return of travel after borders were reopened, and also by brands investing in their omni channel offerings and optimising their marketing spending. While ShopBack is primarily an online shopping platform, the launch of its PayLater service has extended its reach into the bricks-and-mortar environment.  “Shoppers were able to enjoy a RM25 discount [at the ShopFiesta event] when they paid with ShopBack PayLater at any of our merchant-partner stores in Sunway Pyramid, such as JD Sports, Nike, Hush Puppies, Marks and Spencer and more,” he stated. Shoppers were able to make purchases at a discount and split their payments into three instalments. Han said this helped increase footfall, conversions and basket sizes for ShopBack’s retail partners.  “Additionally, we offered various giveaways with up to RM100,000 in value, including shopping vouchers, free staycations, and more via activations such as Scavenger Hunt, Spend & Win, and social media contests,” he elaborated. BNPL’s allure It’s not surprising that  buy now pay later (BNPL) is on the rise, as inflation bites. But Han feels that the success of ShopBack’s BNPL  solution can also be attributed to the ‘cashback’ element, which can reduce customer’s upfront payments, providing accessibility to higher spending power.  “We have so far partnered with over 2,000 merchants in Malaysia such as Zalora, JD Sports, Adidas, Nike, Malaysia Airlines, Agoda, and more – providing financial accessibility to shoppers, to shop at many brands both online and offline,” he reiterated. Since its inception in 2014, ShopBack has given out more than RM150 million in cashback and rewards to its users in Malaysia. Han said the company’s mission is to continue to make shopping rewarding, delightful and accessible to its users and merchant partners. “In the current economic climate, Malaysians are looking for ways to save more money and access financial flexibility conveniently. While, for retail and online merchants, it is beneficial for them as they are optimising their marketing budget on a cost-per-sale basis too,” he said. Han is bullish about the company’s prospects and believes the rewards and payments business will continue to grow alongside retail and online shopping, at least in the next few years. The marketplace According to the company’s internal research, the value of Malaysia’s BNPL market is expected to reach US$1.5 billion by 2026 from just US$481 million in 2022. Han feels that the retail industry is still in the exploratory phase with BNPL providers. Although there is a concern about risk with BNPL concepts, Han stated that the company makes a concerted effort to mitigate this with a data-driven proprietary risk assessment process. “With such safeguards in place, we offer a manageable credit limit for each individual user which may increase if they are good users whose payments are timely. Such are ways we implement to help educated users on how to manage their finances better,” he explained. As of now, the company has more than 15,000 brands and retailers across Malaysia on its platform.