Storepay is the first and leading BNPL service provider in Mongolia. Since its 2019 launch, Storepay has been on a mission to offer its users a unique combination of fintech, cryptocurrency and blockchain technologies that are easy to use, borderless, time-saving, accessible, equal and free of charge.

When it launched, paying interest and other fees for credit cards and instalment loans were the norms in Mongolia. Even the latest digital lending apps required users to physically sign agreements. Storepay pioneered its end-to-end digital service that doesn’t levy interest and fees. As a result, Storepay is now used by over 500,000 Mongolians.

Storepay founder and CEO Khangal Nergui discusses the firm’s impressive growth to date and looks ahead to its 2023 expansion plans including roll out in Indonesia

RBI: Looking back to 2022, what were some of the highlights for Storepay?

Khangal Nergui:

As a startup in a fast-paced environment, we need to make some kind of progress every day, whether good or bad. Fortunately for Storepay, 2022 was full of milestones.

Some of them include:

  • Our GMV in Mongolia grew by 276% compared to 2021;
  • The launch of our B2B BNPL service for SME businesses. This includes no interest, hidden fees, and not even collateral for a large purchase price. We can do this by using our native token, SPCFIN, as a collateral substitute which removes a big burden for business owners, and
  • The start of our operation in Jakarta, Indonesia, the most promising BNPL market in South East Asia. We’re working on the app’s customisation and plan to launch it in the second quarter of 2023

RBI: And looking to 2023 plans, what targets have you set for further growth?

Khangal Nergui:

One of our biggest goals for the new year is to have a successful launch in Indonesia. We’re confident in our business model and the experienced team that we built in Jakarta. Another major goal for the coming year is to expand SPCFIN’s international community.

We are enabling thousands of everyday people to use cryptocurrency and allowing crypto communities to use their investments to purchase everyday goods and services. We want to reach more people globally and make significant strides toward becoming the token with the largest utility.

RBI: And once you roll out in Indonesia, what sort of growth do you expect?

Khangal Nergui:

We’re forecasting over 100,000 users and $3m GMV by the end of 2023 for Storepay Indonesia.

RBI: Storepay marketing collateral references: “Storepay increases merchant partner sales by 14%…” How do you answer critics of BNPL that argue that BNPL encourages consumers to make purchases that are non-essential/that they cannot really afford?

Khangal Nergui:

Credit card companies make a substantial percentage of their profit from late fees. In contrast, the BNPL model is not designed to profit from users. At Storepay, our credit scoring model assesses users’ affordability using their income level and pattern.

Based on users’ repayment history, we increase their purchase limit while users cannot buy more if they are late paying off one of their instalments. It is impossible to keep using the service if they have a default history. As a result, Storepay’s model does not encourage users to buy more than they can afford by default but rather provides users with credit that we know they can repay.

RBI: Why does Storepay believe it is sensible to encourage wider use of crypto given its price volatility and all the negative PR surrounding crypto?

Khangal Nergui:

Everyone should exercise caution and responsibility when investing in cryptocurrency. We promote our SPCFIN token because it is interconnected with our stable and growing BNPL service, which currently has over 400,000 active users and over 2,000 merchant partners.

All our advanced BNPL features require SPCFIN to unlock them. As long as the Storepay BNPL ecosystem is used, SPCFIN will be in demand.

RBI: What is your take on the BNPL sector in 2023 and the prospect of greater regulation?

Khangal Nergui:

We believe that by 2023, more BNPL players will be providing banking services, either independently or in collaboration with pre-established banking institutions. In terms of regulation, some countries may begin imposing regulations on BNPL service providers, but we wonder if it will happen in 2023.