Mastercard has partnered with Lipa Later to provide consumers and merchants with tailored Buy Now, Pay Later (BNPL) solutions and improved payment capabilities. According to Mastercard, this partnership will accelerate financial inclusion and BNPL solutions across the continent. Financial inclusion can help alleviate a big percentage of the population from poverty according to the Consultative Group to Assist the Poor (CGAP). Financial inclusion tends to benefit both individuals and businesses alike. BNPL solutions also benefit as access to credit can help accelerate economic output if utilized correctly.
Lipa Later is one of the leading BNPL companies in Kenya and across a number of countries in Africa. The company has strategic partnerships with leading merchants across the markets it operates in and adding Mastercard to the list of payment partners opens even more doors. By partnering with Lipa Later, Mastercard uses its technology to enable these payments in a digitally secure way. Together with Lipa Later, they will be able to provide seamless consumer experiences through Buy Now Pay Later to promote inclusion to previously underserved communities and drive sustainable economic growth in Africa
According to the 2021 FinAccess Household Survey Report, Kenya has experienced remarkable growth in financial inclusion at a national level, with about 84 percent of the adult population accessing formal financial services. However, a significant portion of the population still lacks access to formal financial services. This collaboration aims to bridge that gap by providing the underbanked population and individuals with limited access to financial services, the opportunity to participate in the digital economy.
The partnership leverages Mastercard’s extensive network of merchants, innovative payment methods, and state-of-the-art technology infrastructure and Lipa Later’s strength in consumer credit. Mastercard says both companies are poised to empower individuals and businesses with greater access to essential products and services, make access to credit seamless and reduce friction to create seamless shopping experiences.
In this partnership, Lipa Later will provide flexible financing options at checkout. With instant Know Your Customer (KYC) capabilities, customers can easily access financing and enjoy a frictionless shopping experience. Merchants can also increase their average basket size, cater to a wider customer base, and enhance their ability to provide more products and services.
“Expanding Buy Now Pay Later and lending solutions in Africa through this strategic partnership marks a significant milestone for Lipa Later. We strongly believe in the power of financial inclusion and the transformative impact it can have on individuals and businesses,” said Eric Muli, Founder and Chief Executive Officer of Lipa Later Group. He also went ahead to add that the two organizations joining forces will accelerate their mission of making credit easily accessible and reducing friction to create seamless shopping experiences.