The partnership is a great indicator of the growth and traction in the South African e-commerce retail market. It is also one of the first 'traditional' retail cards to become an accepted online payment option.
"A while ago we identified that online retail was a fast-growing market segment. We understood that this convenient form of shopping was on a sharp incline and presented a great business opportunity," explained Regan Adams, COO of RCS. "So we developed an e-commerce solution to enable online shopping on the RCS card. However, when developing our e-commerce strategy, it was critical that we align with partners who shared our vision of making this possible for our customers. We are excited that RunwaySale is our first e-commerce partner, which was a natural fit, given they are one of the largest online fashion retailers and share our ongoing commitment to bringing value to our customers."
"This partnership opens up an entirely new online market for us and gives a wider consumer base the opportunity to buy affordable designer brands using their RCS credit facilities," said Karl Hammerschmidt, CEO of RunwaySale.
Launched in 2012, RunwaySale's business model is based on an exclusive free members-only shopping community that has access to designer brands at discounted prices. Savings on brands such as Polo, Pringle, Nine West, Bronx, Levi's, Triumph and Forever New range from between 40% to 60% off normal retail prices.
"When we launched we were determined to offer a unique product and service in order to grow a loyal customer base. Our offering of discounted stock is sought after, as reflected in our membership growth and increased sales. We have doubled in size year on year with 80% of our shoppers being repeat purchasers - this underpins the success of online shopping within the retail space," said Hammerschmidt. "From the outset we have striven to help South Africans save by shopping online. Payment solutions have traditionally been one of the biggest trust issues for customers, but with the addition of the RCS partnership we hope to overcome this further."
Adams said that RCS has embarked on various omnichannel campaigns to inform its growing cardholder base of the acceptance of their cards online.
"We are delighted and excited that RCS has seen and recognised the development and expansion of online retail sales and was confident enough to partner us in its first e-commerce payment venture. It may still be all new but we are already seeing membership growth and customer endorsement," concluded Hammerschmidt.
