Telkom Kenya has announced partnership with Lipa Later to offer Kenyans a product financing solution. The companies say the solution makes it easier for Kenyans to purchase smart mobile devices through affordable monthly instalments.
Kenyans will be able to access phones from brands like Apple, Nokia, OPPO, realme, TECNO, Ulefone, Vivo, Xiaomi, Huawei, Bontel and itel.
Lipa Later has been offering Buy-Now-Pay-Later (BNPL) services for a while now. Research says that the global BNPL industry’s market size was valued at $90.69 Billion in 2020 and is projected to reach $3.98 Trillion by 2030, growing at a compound annual growth rate of 45.7% from 2021 to 2030.
We’ve seen an uptake of BNPL solutions by different retailers. In the Kenyan market, there are many companies offering the solution of different products including phones, furniture, home electronic appliances and more.
With BNPL, customers can purchase essential goods by choosing an affordable financing plan and paying in instalments instead of the entire cost all at once. We can expect this trend to keep growing in this market.
What they said:
Telkom CEO, Mugo Kibati says, “Telkom is excited to announce this partnership as it speaks to our belief that access to Mobile Data is a fundamental human right. This is due to its strategic potential to progressively address digital inclusion; ensuring the benefits of the Internet and digital technologies are available to more Kenyans, consequently empowering the digital economy.”
According to the Global Systems for Mobile Communications Association (GSMA), there is ample opportunity for the mobile industry and ecosystem players to improve smartphone affordability among these consumer segments.
Mr. Kibati adds, “Telkom remains committed to enabling Kenyans be part of an interconnected world. We continue to have exploratory discussions with our partners to find solutions that will enable our customers have access to a wide range of authentic products and services, affordably and conveniently. Coupled with the easier access to smart mobile devices through this partnership with Lipa Later, our customers will also be able to enjoy affordable Mobile Data through our products such as the recently launched Changa Bundle which enables Kenyans to share data, minutes, voice and SMSs.”
Lipa Later CEO, Eric Muli says, “We are delighted to kick start this partnership with Telkom that will enable both our customers to get and stay connected by acquiring mobile and data devices affordably. Consumers can walk into any Telkom store, sign up with Lipa Later, get a credit limit in less than 5 minutes, pick a device of their choice at zero deposit, and get connected to mobile and data services, and pay for the same in upto 12 monthly installments. Additionally with our integration with UzaPoint, the process at the checkout till will be seamless for the consumer across all the Telkom outlets in the country.”