Kenyans will now be able to shop in supermarkets on credit and pay later in a new plan.
In the wake of shrinking shopping basket and little disposable incomes, businesses are embracing new models to stay afloat.
The latest move has seen retail chain Naivas announce a plan that will enable its loyal shoppers access goods on credit.
Initially the business model was perceived as the refuge for low income earners but in recent years its use is growing even the middle class.
Speaking to the Star during a partnership between the retailer and Visa, Naivas Chief of Strategy Andreas von Paleske, said the retailer is working on providing more payment solutions to customers.
“We are looking to continuously build on the buy now pay later model,” said Paleske,
According to Research and Markets, the BNPL payments in the Kenya has been growing by 20.8 percent on an annual basis and was projected to reach US$1.1 billion (Sh145 billion) by the end of 2023.
The insights show that medium to long term growth story of BNPL industry in Kenya remains strong.
BNPL payment adoption is expected to grow steadily over the forecast period, recording a compounded growth of 12.2 percent during 2023-2028.
The BNPL Gross Merchandise Value in the Kenya will increase from US$0.9 billion (Sh118.8billion) in 2022 to reach US$1.9 billion (Sh250.8billion) by 2028.
In the new plan, Naivas shoppers it will still hold onto its old loyalty cards. However it will introduce a new one jointly with Visa, that customers will use in new payment solutions such as Tap and Go.
Paleske said that since the Covid-19 pandemic there has been an increase in card purchases that has prompted the partnership.
“Cash as a means of transactions has declined significantly since 2022, while card usage has increased. As a retailer with 3.6 million loyalty card holders we are constantly looking for ways to give our customers a better experience,” said Von Paleske.
The new card, named the Reward Card, is the first in the Kenyan retail sector where shoppers will be able to buy goods globally and earn Naivas loyalty points while using it.
Chad Pollock, Vice President and General Manager of Visa East Africa, said the partnership aims to promote seamless and secure digital payments in Kenya, making financial services more accessible and inclusive.
