Buy Now, Pay Later (BNPL) is now accepted as a payment method in Nigeria, both online and at points of sale. be expected According to this report, to achieve a CAGR of 20% from 2021 to 2028I
Further attention was given to the growth of BNPL as a GMV. was predicted From $204 million to over $1 billion by 2028. The key to this growth is the activities of providers whose platforms Encourage consumers to shop quickly and pay on time.
To that end, CredPal, one of Nigeria’s early pioneers of “buy now, pay later,” has entered into an interim round of $15 million in equity and debt (the latter making up a significant portion of the funding) in its expansion proposal. consumer credit through africaI
According to a statement released by the company, the investment will support its expansion into other African markets, primarily Kenya, Egypt, Ghana and Cameroon.
In 2018, CredPal launched a point-of-sale consumer credit service linked to an e-commerce store for low- and middle-income individuals.I At the time, the concept of BNPL was growing, at least in Nigeria, and since adoption hasn’t been great, CredPal has been flirting with a new credit offer through a card that’s been growing in use, the CEO said. Fehintolu Olagun Said Kip’s VanityI
“We have launched cards to expand the reach of our BNPL service and this was well received,” he said. “But now people can shop in installments by visiting partner stores or using our credit cards.”
A credit card is one of two options (the other is via a mobile app) that consumers can use to access CredPal BNPL services when they partner to purchase electronics, especially smartphones, ranging from furniture to groceries.I
Consumers can access loans ranging from 5,000 (~$10) to 500,000 (~$1,000), of which they necessary Return in the period from 30 to 180 days after making a 30% prepayment. Interest rates range from 4% to 9%.
Olagoon said that in cases where consumers pay within two months, they may not pay interest, which: covered Through commissions, the company charges sellersI In terms of merchants, CredPal has 20,000 registered merchants; However, there are over 4,000 There are only 600 active traders per month. They serve an active customer base of 85,000 monthly.
As one of the largest BNPL service providers on the continent, these numbers seem somewhat impressive, but knowing how early the sector came into being in Nigeria and much of Africa, Credpal barely surface scratchesI
But becoming a market leader in Nigeria or Africa is not yet ready for CredPal’s power. Newcomers like Simple, Carbon Zero, Shahri, Lipa Letter, Pelleter, CDCare, Clump and even big guns like Tabby are keeping an eye on different regions of the continent.
“What sets us apart is that we offer a comprehensive approach to BNPL,” said the CEO who founded the company. olorunfemi jegedeHow CredPal is positioning itself in the face of growing competitionI
“We have developed a merchant package for those who want to have a complete e-commerce website for brick-and-mortar shops and social commerce merchants.We are independent of merchants, and our technology also allows consumers to interact with CredPal through various channels.”
CredPal Pay, an omnichannel merchant package, allows businesses of all sizes and categories to accept Buy Now and Pay Later. The platform acts as a point of sale infrastructure that allows BNPL to use credit payment links, checkout plugins, QR codes and a transaction management system.I Credpal will compete with ThankCash in this segment of providing BNPL infrastructure to vendors.
Because the CredPal product is both technical and geographicalThe company said part of the new investment will also help it partner with carrier Airtel Nigeria to help low- and middle-income people. Purchase smartphone in installmentsI
financial indebtedness was granted Credit Direct, a subsidiary of First City Monument Bank (FCMB) and some unnamed financial institutions.I
Greenhouse Capital, a fintech and embedded finance venture capital firm, is currently one of CredPal’s sponsors. He participated in this interim round, two years after which CredPal raised $1.5 million in seed funding, using the money to launch its credit card product.I
New investors include Uncovered Fund, LongCommerce, First Circle Capital and Adi Pienaar, co-founder and former CEO of WooCommerce.I