- They account for 26 million out of 59 million mobile phone devices in Kenya
- The global Buy Now Pay Later industry’s market size was valued at $90.69 billion in 2020
Technology company Telkom, has partnered Lipa Later, to enable mobile users in Kenya to get devices on credit.
The move is aimed at increasing access to smart mobile devices that can be used to boost income through the digital economy.
The latest survey by Dalberg shows Kenyans rely on digital tools and services to boost their income.
According to the Communication Authority of Kenya (CA), the country has over 26 million smartphone devices out of 59 million mobile phone devices, putting penetration levels at 53.4 per cent.
Telkom chief executive Mugo Kibati says the partnership blends with the firm's vision of empowering its customers to access mobile and data services.
“Telkom is excited to announce this partnership as it speaks to our belief that access to Mobile Data is a fundamental human right. This is due to its strategic potential to progressively address digital inclusion,'' Kibati said.
He added that the firm is keen to ensure benefits of the Internet and digital technologies are available to more Kenyans, consequently empowering the digital economy.
According to the Global Systems for Mobile Communications Association (GSMA), there is ample opportunity for the mobile industry and ecosystem players to improve smartphone affordability among these consumer segments.
''Our customers will also be able to enjoy affordable Mobile Data through our products such as the recently launched Changa Bundle which enables Kenyans to share data, minutes, voice and SMSs,” he said.
On his part, Lipa Later CEO, Eric Muli said consumers can walk into any Telkom store, get a credit limit in less than five minutes, pick a device of their choice at zero deposit and pay for the same in up to 12 monthly installments.
“We are delighted to kick start this partnership with Telkom that will enable customers to get and stay connected by acquiring mobile and data devices affordably,'' Muli said.
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.
The global Buy Now Pay Later industry’s market size was valued at $90.69 billion in 2020 and is projected to reach $3.98 trillion by 2030, growing at a compound annual growth rate of 45.7 per cent.
The increase in the adoption of online payment methods across developing nations is the leading factor pushing up the buy now pay later market.