If you are in South Africa, Nigeria, Botswana, Zambia, eSwatini and Lesotho, then you are most likely acquainted with the retail group – Pick n Pay. The retail business was first established in 1967 in Cape Town, South Africa, with four stores. It has since grown to own a chain of stores across the sub-Saharan African region and has equally established one of the biggest online grocery shopping platforms in the region. They have recently introduced a new service which sells groceries to customers on credit. In this article, we will be explaining how the pick n pay credit works and how you can also benefit from this service.
What is Pick n Pay Credit, and how does it work?
Apart from being a giant retail business group, Pick n Pay has also revolutionised the shopping experience of its customers by introducing Pick n Pay credit which allows loyal customers to buy groceries on credit at low-interest rates in South Africa. Although the service faces criticisms and controversy, the Pick n Pay credit system is here to stay.
How does this work? It’s easy! Every customer that already has a smart shopper’s card will be entitled to a store’s account, which allows them to shop on credit. Customers are also able to choose the period of the credit instalments, which range from 24 to 36 months.
How much will the interest be on pick and pay credit?
Every customer that is considered eligible for a store’s account or to buy on credit would get up to 55 days of credit without any interest if you are able to pay your debts as a lump sum and on the designated time each month. You will also benefit from an R200 deduction of your first purchase if it amounts to R500 and above.
In the case where you are unable to pay your outstanding balances on time, then you will be required to pay an interest fee. Every customer’s interest rate will differ according to the amount that they are allowed to borrow. In the terms and conditions of Pick n Pay credit, this clause is clearly outlined. If you fail to pay your debts by the end of the month, you will be charged with an interest which will be calculated daily and summed up at the end of the month.
You will be shown your interest rate when you are signing up for the service. Although each person’s interest rate may differ, we cannot tell you exactly how much interest you would be required to pay. But what is sure is that the interest rate would be in accordance with the credit Act, which sets the repo rate at about 6.75%, setting the yearly interest at about 28%.
How much credit can I get, and how do I apply?
If you were wondering how much credit you may be able to get, well, we can not tell you specifically how much your limit may be. But what can tell how much the credit range may be, and you will be pleased to find out that is a lot! The credit limits range from R1000 to R40000. Your individual credit limit will be determined after Pick n Pay has assessed your individual circumstances.
The application process for this service is very easy, and anybody can do it. To apply, you will have to meet a few requirements for you to qualify.
- The individual applying has to be 18 years or older.
- You should have a minimum monthly earning of R2000.
- You are required to present your identification documents as well as a document to prove your monthly earnings.
If you meet the criteria for application, then you can go ahead to Apply. There are four ways through which you can apply.
Option 1: Apply online on the Pick N Pay website by simply launching the website on your device and following the instructions as they come. You can copy and paste this direct link in your web browser: www.picknpay.co.za.
Option 2: The other means through which you can apply is by calling them directly or sending them as SMS. To apply via calls, simply dial this number: 0861 555 955; If you would like to apply via SMS, SMS “PnP” to 30087.
Option 3: the third option is to apply in person at any Pick n Pay store. Simply leave your personal and contact details at the money counter of any Pick n Pay store.
Option 4: download the Pick n Pay application available on Google play store and apple app store.
What are the fees for pick and pay credit?
Although there are no fees at the beginning, the Pick n Pay credit service is not entirely free. You will have to pay a service fee of R10 every month. These fees are service fees, but there are no transaction or coining fees. You will also be able to enjoy certain benefits such as bonus points. When you pay for your instalments, you will be given “smart shopper points”. You will also benefit from free SMS notifications every time you make a purchase.
How do you join?
To join the Pick n Pay credit service, you would have to have your Smart Shopper Card. What is a smart shopper card? A Smart Shopper card is a card that delivers immediate deductions on certain items. This card would grant you access to the facility, but you would need to have a unique PIN to use the Pick N Pay credit service. You would also have the possibility of having three secondary smart shopper cards, which you can give to your family members or friends.
With the information provided in this article, you can begin benefitting from this credit service from any Pick and Pay store, simply ensure that you meet the requirements to register. You follow the registration procedure and meet up with your monthly payment to avoid additional costs and interest on your outstanding balance. Remember that your interest rate will be stated when you are signing up to ensure that you read through the Pick n Pay credit terms and conditions properly.
For information that may not be contained in this article, or if you have any questions, worries, or inquiries, please contact Pick n Pay through any contact details listed below.
101 Rosmead Avenue
Cape Town 7708
Phone: 0800 11 22 88
Phone: 0860 30 30 30