Telkom and Lipa Later, a Buy-Now-Pay-Later startup, have partnered to provide Kenyans with a product financing solution that would make it easier to purchase smart mobile devices. With this collaboration, both companies hope to make these devices more available to consumers through low-interest monthly payments.
Smartphone adoption continues to rise, as more people recognize the benefits of having Internet access in the palm of their hand. This collaboration complements Telkom’s objective of enabling its consumers to access mobile and data services.
“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.” said Telkom CEO, Mugo Kibati.
According to the Global Systems for Mobile Communications Association (GSMA), the mobile industry and ecosystem participants have sufficient opportunities to increase smartphone affordability among certain customer segments.
“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.” Kibati addded.
“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.” said Lipa Later CEO, Eric Muli.
“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,” he adds.
Customers will be able to choose phones from companies such as iPhone, Nokia, Oppo, Realme, Tecno, Ulefone, Vivo, Xiaomi, Huawei, Bontel, and Itel as a result of this collaboration.
The global Buy Now Pay Later sector was worth $90.69 billion in 2020 and is expected to be worth $3.98 trillion by 2030, rising at a compound annual growth rate of 45.7 percent from 2021 to 2030.
Retailers are now offering Buy Now Pay Later alternatives, which allow customers to purchase necessities by selecting an affordable financing plan and paying in installments rather than the total cost all at once. The growing acceptance of online payment methods in emerging countries is also hastening the rise of the purchase now pay later payment business.