With this partnership, both companies are looking to make these devices more accessible to consumers through affordable monthly installments.

Uptake of smartphones continues to grow with more people getting to appreciate the advantages of having access to the Internet in the palm of their hand. This partnership blends with Telkom’s vision of empowering its customers to access mobile and data services.

Speaking at the event, Telkom CEO, Mugo Kibati stated: “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; ensuring the 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.

Kibati added: “Telkom remains committed to enabling Kenyans be part of an interconnected world. We continue to have exploratory discussions with our partners to find solutions that will enable our customers have access to a wide range of authentic products and services, affordably and conveniently. Coupled with the easier access to smart mobile devices through this partnership with Lipa Later, 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.”

On the other hand, Lipa Later CEO, Eric Muli stated: “We are delighted to kick start this partnership with Telkom that will enable both our customers to get and stay connected by acquiring mobile and data devices affordably. Consumers can walk into any Telkom store, sign up with Lipa Later, get a credit limit in less than 5 minutes, pick a device of their choice at zero deposit, and get connected to mobile and data services, and pay for the same in upto 12 monthly instalments.”

“Additionally with our integration with UzaPoint, the process at the checkout till will be seamless for the consumer across all the Telkom outlets in the country.”

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% from 2021 to 2030.

Retailers are now offering Buy Now Pay Later solutions that enable their customers to purchase essential goods by choosing an affordable financing plan and paying in instalments instead of the entire cost all at   once. The increase in the adoption of online payment methods across developing nations is also accelerating the growth of the buy now pay later payment market.

Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Financial Services are investors who participated in Lipa Later’s equity and debt funding round.

Lipa Later is a buy-now-pay-later (BNPL) company founded in 2018. The startup’s expansion into new markets includes countries such as Tanzania, Ghana and Nigeria, as well as strengthening its presence in existing markets such as Kenya, Uganda and Rwanda.

The company targets achieving this growth and expansion plan within the next 12 months.

Lipa Later has exclusive partnerships with retailers across these markets allowing shoppers to pay for products in installments. For instance, Lipa Later’s partnership with French retailer Carrefour (which has a regional presence) allows customers to pay for items including furniture, electronics and even perishables in monthly installments.

Customers pay a monthly interest rate (about 2.3% in the case of Carrefour) on the credit extended to them. The startup is planning to forge more partnerships with merchants in its plan to cover more countries across Africa.

Lipa Later’s proprietary credit scoring and machine learning system allow consumers to sign up and get a credit limit almost instantly.

Also, the startup has built a BNPL API that integrates into e-commerce platforms, enabling merchants sell products directly to consumers and making it possible for consumers to remit monthly installments for items purchased.

In its bid to traverse Africa, where opportunities abound as e-commerce and alternative credit sources grow, Lipa Later will have to contend with competition from South Africa’s Payflex (which was recently acquired by Australian BNPL Zip) and PayJustNow, and Nigeria’s PayQart and Carbon Zero.