Pick n Pay says it will have to follow strict criteria to determine which customers will qualify for its new credit agreement.
We are following strict National Credit Act rules, which require a very prescriptive way of determining whether someone qualifies for credit.— Richard van Rensburg, Deputy CEO at Pick n Pay
The credit plan has the potential to help consumers save money instead of spending money on interest-bearing debt, says the retailer.
Pick n Pay has worked with credit provider RCS to design a product that has no hidden fees.
Deputy CEO, Richard van Rensburg, stressed that the retailer is not entering the financial services industry or trying to make extra profits.
It is not a good idea to buy food or any short-term consumable product on interest-bearing credit.— Richard van Rensburg, Deputy CEO at Pick n Pay
The second biggest reason why customers have low disposable income to spend on food is because of their high debt burden.— Richard van Rensburg, Deputy CEO at Pick n Pay
If you pay your account off in full at the end of the month - which is what we are encouraging customers to do - you pay absolutely no interest.— Richard van Rensburg, Deputy CEO at Pick n Pay
Take a listen to him explain how the credit agreement will work: