The partnership aims to empower people and businesses by leveraging technology infrastructure to improve access to goods and services. This step should contribute to fostering economic growth on the continent.
Mastercard, a global fintech leader, partnered earlier this month with Lipa Later, a key fintech player, to boost the adoption of Buy Now, Pay Later (BNPL) services in Africa.
This collaboration will offer tailored BNPL solutions and improved payment options, benefiting both consumers and merchants. With Mastercard's merchant network, tech innovations, and Lipa Later's consumer credit expertise, the partnership aims to enhance access to crucial products and services, streamlining credit access and transaction experiences.
Kenya, with an 84% formal financial service usage according to the 2021 FinAccess Household Survey Report, shows growth in financial inclusion. Yet, a significant portion still lacks access. This collaboration seeks to bridge this gap, extending digital financial services to the underserved.
Shehryar Ali, Mastercard's East Africa Country Manager, stressed the partnership's role in providing new digital payment solutions. By leveraging Lipa Later, Mastercard aims to ensure secure digital payments and foster financial inclusion for underserved communities, thereby promoting economic growth. “Mastercard is fundamentally committed to promoting financial inclusion, and this alliance unfolds fresh avenues for consumers and retailers to tap into previously inaccessible digital payment solutions,” she stated.
The BNPL solution simplifies financing at checkout, with instant Know Your Customer (KYC) capabilities. This benefits consumers and boosts merchant revenue, allowing a wider product range.
Eric Muli, CEO of Lipa Later Group, highlighted the partnership's significance in expanding BNPL and lending solutions in Africa. The collaboration seeks to stimulate economic empowerment and innovation in Africa's retail sector.
This partnership showcases Mastercard's commitment to inclusive growth through technology-driven solutions. By backing new payment models and local entrepreneurship, Mastercard propels economic progress in Africa.
Hikmatu Bilali
