A strategic alliance between Mastercard and Lipa Later, a leading credit-led and technology-driven fintech, was recently announced by Mastercard.
The purpose of this partnership is to hasten the growth of payment systems that allow customers to “Buy Now and Pay Later” (BNPL) across Africa.
Through the provision of specialised BNPL solutions and improved payment capabilities, it is anticipated that the cooperation will make previously unavailable opportunities available to both customers and merchants.
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 set to empower individuals and businesses by improving access to essential products and services, make access to credit seamless, and reduce friction to create seamless shopping experiences and transactions.
Mastercard has an extensive network of merchants, innovative payment methods, and state-of-the-art technology infrastructure. Lipa Later has a strong consumer credit offering.
It is estimated that approximately 84 percent of Kenya’s adult population has access to formal financial services, as is stated in the report that was produced by the 2021 FinAccess Household Survey.
This indicates that Kenya has had exceptional progress in terms of financial inclusion on a national level.
Despite this, there is still a sizeable percentage of the population that does not have access to conventional financial services. The goal of this collaboration is to close that gap by extending the ability to engage in the digital economy to segments of the population that are underbanked and to persons who have restricted access to financial services.
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Details of the partnership between Mastercard and Lipa Later
Shehryar Ali, Country Manager for East Africa at Mastercard said: “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.”
“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 offer a variety of convenient financing choices at the point of sale, so assuring a seamless omni-channel experience both online and in physical retail locations. Customers will have an easier time gaining access to credit and will have a more enjoyable and hassle-free time buying when quick Know Your Customer (KYC) capabilities are available. The ability of merchants to expand the size of their average basket, cater to a larger client base, and improve their capacity to provide additional items and services is also improved.
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Significance of the partnership
Eric Muli, Founder and Chief Executive Officer of Lipa Later Group said: “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.”
“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.”
This strategic partnership between Mastercard and Lipa Later illustrates Mastercard’s commitment to encouraging inclusive growth via the utilisation of cutting-edge technology and customer-centric solutions. The company’s goal is to stimulate economic growth across Africa and provide opportunity for people of all backgrounds by adopting innovative forms of payment and providing support to local business owners.