The Covid-19 pandemic and the extension of the Movement Control Order (MCO) have placed unprecedented stress on local retailers.

In 2020, Malaysia's retail sales contracted 16.3% to RM90 billion, the biggest contraction in nearly two decades. Small and medium enterprises (SMEs) make up 99% of the establishments in Malaysia, and more than 40% are expected to close down. Up to two million jobs might be lost, according to a nationwide survey conducted by the SME Association of Malaysia (SME Malaysia).

Meanwhile, many Malaysian shoppers with tight budgets are being deterred by purchases that require a lump-sum payment. They are also wary of getting into debt and being charged revolving interest, preferring instead the transparency and certainty of fixed, interest-free payments. Many are also opting for contactless payment options and shopping at brands that offer both online and physical ways to buy.

In line with the shift in purchasing and shopping behaviours, a growing number of local businesses are turning to alternative solutions that will let their customers spread the total cost of the purchase into bite-sized, interest-free payments over a period of time. One such solution is Atome.

Launched in the last quarter of 2020 in Malaysia, Atome works with over 200 leading retailers in several categories - including beauty (Sasa, The Face Shop), fashion (Zalora, Aldo, Hush Puppies), lifestyle (Machines, Swee Lee Music, Box of Bricks, Eu Yan Sang) and travel (Agoda) - to improve and grow their businesses.

Customers can split their shopping bills into three easy monthly payments at 0% interest and no administrative fee by scanning a QR code in Atome's mobile app at the in-store checkout counter of a merchant partner or by selecting Atome as the payment method on the merchant's website.

For many of the retailers who are now struggling to stay afloat, Atome presents a critical lifeline with benefits including:

Better cash flow: After a customer uses Atome to pay for one-third of his total bill upfront, merchants will receive the full purchase amount (minus a small transaction fee) from Atome within three working days. For retailers struggling with Movement Control Order (MCO), this helps with their cash flow and is a critical lifeline to support their operating expenses (such as staff salary, rent, deep cleaning fees and inventory/stock expenses).

More sales: Atome reduces the upfront cost for consumers, making purchases more manageable. They just pay one-third of the price and the rest is spread out over two months. This increases the likelihood of customers "checking out" their purchases so the merchants get the sale.

Bigger basket sizes: When customers are given the option of spreading out their payments, retailers see bigger bills on average. In Atome's case, their retail partners have experienced an average 17% increase in their ticket order size and 30% higher conversion during checkout.

New customers: By only needing to pay one-third of the full bill upfront, retail partners can now expand their customer base to shoppers who previously would not have shopped at their stores because the products were beyond their price point, or would have waited to save until they could pay in full. This would include customers who work in the gig economy and part-time professionals or contract workers.

Marketing support: Atome supports retailers in digital marketing campaigns such as the "Get It Week" and "Get Raya Ready" to drive leads and sales to merchants' websites or stores, helping them with analytics to better understand user behaviour and demographics.

Atome partners with over 5,000 online and offline retailers in nine markets across Asia, namely Malaysia, Singapore, Indonesia, Hong Kong, Taiwan, Vietnam, the Philippines, Thailand and mainland China.

For IUIGA, a Singapore-headquartered business selling premium-quality home essentials, Atome's regional footprint was key to the partnership.

"We believe in making quality, premium products at fair, transparent prices and this partnership helps increase the affordability of our products, particularly for our Gen Z and millennial customers. We also have aggressive plans to grow our brand in Indonesia, where Atome already has an active presence," says IUIGA co-founder Jaslyn Chan.

Another merchant partner, Zalora, also saw the immediate benefit of adding Atome to its list of payment options during checkout, and has seen over 70% growth in the number of its customers using Atome in Singapore and Malaysia.

Atome's alternative payment solution will not only change the way customers shop and pay, but also support Malaysian retailers and local businesses amid the sales crunch during the pandemic.

Find out how partnering with Atome can help businesses grow.

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