The e-commerce department of Kuaishou, a popular short video platform in China, announced that it had reached a deal with Zhima Credit, a subsidiary of Ant Group, to launch a new payment scheme on the platform. The scheme will be “buy first and pay later” in which users can purchase goods through the platform and makes payments later on. The new payment scheme began on June 1.
Withthe new function, consumers whose Zhima Scores are above 550 can “buy first and pay later” when shopping on the e-commerce portion of Kuaishou, and then pay for the goods once they are satisfied with the purchase.
As a new marketing tool to promote the new transfer, the “Pay After Use” feature will be set up by the Kuaishou e-commerce merchants, and eligible consumers who purchase goods with the “Pay After Use” logo can pay on delivery after placing an order for zero yuan. The payment for the “Pay After Use” service will be deducted from the consumer’s account once the consumer confirms receipt of the goods or the system automatically confirms receipt of the goods. If the deduction fails, the platform will guarantee the normal settlement of the payment to the merchant.
The new “Pay After Use” mode of transaction aims to helps solve the problem of trust in e-commerce, such as mismatched goods, poor product quality and the non-delivery of orders. The goal of the system is to make it more convenient for consumers to return and exchange goods, ensure better protects are being offered, and to protect the rights and interests of users while also saving consumers the trouble of locking up funds while waiting on the delivery of their goods.
The new payment scheme will also help address users’ mistrust of new hosts, brands and products, which should then contribute to improved sales and an increase in overall business revenue.