The fate has united tech companies, merchants and financial services providers to unlock financing headache hindering many consumers in owning desired property.
Tech companies are innovating around buy and pay later (BNPL) solutions which now enable consumers easily access goods and services on a hire purchase arrangement.
In a latest development, Software company, Craft Silicon announced its entry into the Buy Now and Pay Later ecosystem with the launch of Spotit product.
It empowers eligible bank customers with seamless access to produce financing directly from their mobile apps.
“Customers will activate their accounts, select the desired merchant by inputting the merchant code on their app, and the merchant will process the items on a hub provided by Spotit. Once the customer confirms the purchase on their app and accepts the terms and conditions, a unique code will be generated, finalizing the loan booking and confirming the sale completion to the merchant. Spotit will then promptly transfer funds to the merchant for the sale,” explains Mr Kamal Budhabhatti, Craft Silicon Group Chief Executive Officer.
“The platform accommodates a wide range of e-commerce merchants to offer an omnichannel shopping experience,” said Kamal.
He notes that the solution, Spotit, stands out from its competitors by fostering collaboration among three key stakeholders: the Bank, the merchant, and the customer. By uniting these parties, the BNPL product ensures that each derives substantial value from the transaction.
Buy Now, Pay Later (BNPL) is a type of installment loan that allows one to purchase something immediately with little or no initial payment and pay off the balance over four or fewer payments.
Unlike a credit card, each time you initiate a purchase with a BNPL loan, your creditworthiness may be evaluated.
Safaricom, LipaLater, MasterCard, Aspira are some current players in Kenya’s Buy Now Pay Later (BNPL) space.
Aspira Kenya, Hotpoint Appliances, and Avana Laundromat for instance have collaborated to offer financing and support to small and medium-sized enterprises (SMEs) in the laundromat business in Kenya. The partnership aims to help SMEs in the laundromat sector access credit, laundry equipment, technical support, and management expertise to optimize their efficiency and revenues.
The Aspira SME Bizna financing program will provide credit to laundromat business owners for the acquisition of laundry machines. Hotpoint Appliances will supply the laundry equipment, and Avana Laundromat will offer technical and management support to the entrepreneurs.
“This facility is important in eliminating barriers faced by SMEs, who are the drivers of the Kenyan economy, and lead to more jobs, wealth creation and financial inclusion. Equally critical is not ending the support at financing, but walking the journey of transformation with them through advisory and connecting them to the right business networks that advance their growth,” Aspira COO Irshad Muttur said.
Laundromats have been identified as a viable and profitable business in Kenya, given the country’s fast-growing middle-class segment and increasing demand for laundry services. The partnership aims to empower SMEs in the laundromat space by providing them with the necessary tools and support to set up and operate successful businesses.
The laundromat sector is essential to the economy as it generates a significant number of jobs directly and indirectly. Additionally, laundromats are more power- and water-efficient, which aligns with sustainable practices.
The collaboration between Aspira, Hotpoint, and Avana demonstrates a comprehensive approach to SME development, focusing on creating ecosystems that meet various needs in a sustainable and long-term manner. The partnership not only offers financial support but also includes advisory services and connections to business networks to foster growth and success for SMEs in the laundromat industry.
By providing a combination of financing, equipment, technical support, and business advice, this initiative seeks to eliminate barriers faced by SMEs and contribute to wealth creation, job opportunities, and financial inclusion in Kenya.
Early this month, Safaricom unveiled its zero-interest credit service for the purchase of goods for up to Sh100,000. The service enables customers to buy on credit from businesses on Safaricom’s Lipa Na M-pesa platform. Customers will be able to make purchases of between Sh20 and Sh100,000 at zero interest and complete the payment within 30 days.
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