Craft Silicon, a technology solutions provider has announced the launch of its Buy Now Pay Later (BNLP) product “Spotit” in Kenya.
According to Craft Silicon, Spotit aims to empower eligible bank customers with seamless access to products directly from their mobile apps which they can then pay for later. The company says it has partnered with merchants nationwide to ensure that qualified customers can obtain the products they desire easily.
“We are proud to revolutionize BNPL in Africa and create a product that offers unparalleled value to our partners and customers alike,” said Kamal Budhabhatti, Group CEO of Craft Silicon. “Spotit represents a significant step towards financial inclusion and empowerment for individuals across the continent.”
The target customer for Spotit is anyone with a bank account. Spotit embeds itself in mobile banking apps, scores the customer, gives the limit, and allows the customer to buy items.
How Spotit works:
Customers activate their accounts and then select the desired merchant by inputting the merchant code on their app. The merchant then processes the items on a hub provided by Spotit. Once the customer confirms the purchase on their app and accepts the terms and conditions, a unique code is generated, finalizing the loan booking, and confirming the sale completion to the merchant. Spotit then transfers funds to the merchant for the sale.
BNLP is emerging as a new frontier for both startups and established companies around the world seeking to venture into the growing sector. According to a report by consultancy firm Mckinsey, the global BNLP market is projected to grow from $22.86 billion in 2022 to $90.51 billion by 2029, exhibiting a CAGR of 21.7 per cent. Some of the companies already operating in the BNLP space in Kenya include Mkopa, Lipa Later, Aspira, Flexpay Technologies etc.
Spotit’s launch comes barely a week after Kenya’s leading telecommunication company Safaricom introduced Faraja, a service that will enable customers to buy on credit from businesses. With an increasing number of companies offering BNLP, merchants now have options to choose those that have faster payment. Customers, on the other hand, will look for BNLP solutions that have faster purchase processes and are friendlier to their pockets.