Businesses & Financial News

Telkom, Lipa Later unveil new Financing solution

Technology company Telkom, has partnered with  Buy-Now-Pay-Later company Lipa Later,  to offer Kenyans a product financing solution that will make it easier to purchase smart mobile devices.

The move is aimed at increasing access to smart mobile devices that can be used to boost income through the digital economy.

Kenyans rely on digital tools and services to boost their income, according to latest data by Dalberg, a majority of Kenyans use digital services for business and livelihoods and has considerable room for growth and deeper engagement.

According to the Communication Authority of Kenya (CA) quarterly sector statistics for the quarter ending September 2021, Kenya has over 26 million smartphone devices out of 59 million mobile phone devices connected to mobile networks in the country, putting penetration levels at 53.4 percent.

TelKom Chief Executive Mugo Kibati says the partnership blends with Telkom’s vision of empowering its customers 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,” Kibati said.

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.

“Telkom remains committed to enabling Kenyans to be part of an interconnected world. We continue to have exploratory discussions with our partners to find solutions that will enable our customers to 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,” he added.

On his part, Lipa Later CEO, Eric MULI says 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, get connected to mobile and data services, and pay for the same in up to 12 monthly installments.

“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. 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.

Through this partnership, consumers will be able to access select phones from brands such as iPhone, Nokia, Oppo, Realme, Tecno, Ulefone, Vivo, Xiaomi, Huawei, Bontel and Itel.

The Global Buy Now Pay Later 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.

Retailers are now offering Buy Now Pay Later solutions that enable their customers to purchase essential goods by choosing an affordable financing plan and paying in installments instead of the entire cost all at once.

The increase in the adoption of online payment methods across developing nations is also accelerating the growth of the buy now pay later payment market.

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