Telkom and Lipa Later team up to offer product financing for smartphones
NAIROBI, Kenya June 28 – Telkom Kenya and Lipa Later have partnered to provide a product financing solution for customers to acquire smart mobile devices and pay in monthly installments.
With this partnership, the two companies seek to make these devices more accessible to consumers as they look to increase internet penetration.
“Telkom is delighted to announce this partnership as it demonstrates our belief that access to mobile data is a fundamental human right. This is due to its strategic potential to progressively address digital inclusion; ensure that the benefits of the internet and digital technologies are accessible to more Kenyans, thereby strengthening the digital economy,” said Telkom CEO Mugo Kibati.
According to the Global Systems for Mobile Communications Association (GSMA), there are many opportunities for the mobile industry and ecosystem players to improve the affordability of smartphones among these consumer segments.
“We are delighted to launch this partnership with Telkom which will allow our two customers to be and stay connected by acquiring mobile and data devices at an affordable price. Consumers can walk into any Telkom store, if register with Lipa Later, get a credit limit in less than 5 minutes, choose a device of their choice without deposit, connect to mobile and data services and pay the same up to 12 monthly installments”, said Lipa Later CEO Eric Muli.
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.
Global Buy Now Pay Later industry market size was valued at USD 90.69 Billion in 2020 and is projected to reach USD 3.98 Trillion by 2030, growing at a compound annual growth rate by 45.7% from 2021 to 2030.
Retailers are now offering Buy Now Pay Later solutions that allow their customers to buy essential goods by choosing an affordable financing plan and paying in instalments instead of the full cost all at once.
Rising adoption of online payment methods in developing countries is also accelerating the growth of the buy-now-pay-later market.