Mastercard
has announced a strategic partnership with Lipa Later, a leading credit-led and
technology-driven fintech. This collaboration aims to accelerate the expansion
of Buy Now, Pay Later (BNPL) payment services in Africa.
The
partnership is expected to unlock new opportunities for consumers and merchants
by providing tailored BNPL solutions and enhanced payment capabilities. By
leveraging Mastercard's extensive network of merchants, innovative payment
methods, and state-of-the-art technology infrastructure and Lipa Later's
strength in consumer credit, 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 and transactions.
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.
"Financial inclusion is at the core of Mastercard's
mission, and this partnership unlocks new opportunities for consumers and
merchants to access digital payments solutions previously unavailable to them,” said Shehryar
Ali, Country Manager for East Africa at Mastercard. By partnering with Lipa Later, we are
leveraging our technology to enable these payments in a digitally secure way.
Together with Lipa Later, we’re focused on providing seamless consumer
experiences through Buy Now Pay Later to promote inclusion to previously
underserved communities and drive sustainable economic growth in Africa.”
The BNPL
solution will provide flexible financing options at checkout, ensuring an
omni-channel experience both online and in-store. 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. “By joining forces with Mastercard, we are
accelerating our mission of making credit easily accessible and reducing
friction to create seamless shopping experiences and usher Africa’s retail
industry into its next phase of growth. This partnership will empower people,
stimulate economic growth, and foster innovation in Africa. Together, we are
driving positive change and shaping the future of finance in Kenya and beyond.”
Mastercard's
partnership with Lipa Later exemplifies its commitment to fostering inclusive
growth through strategic collaborations that leverage cutting-edge technology
and customer-centric solutions. By embracing new payment models and supporting
local entrepreneurs, the company aims to fuel Africa's economic progress and
create opportunities for all.