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Date: 1 September 2023

Lipa Later Group joins forces with Mastercard to promote Financial Inclusion in Africa

Verdant Capital is advising Lipa Later on its fundraising.

Lipa Later Group (‘Lipa Later’) has announced a new partnership with Mastercard, to promote Buy Now, Pay Later Solutions in African Markets. Lipa Later is a Buy Now, Pay Later (BNPL) Financial Technology Company (FinTech). It operates as a payment option that allows customers to access credit conveniently whilst purchasing commodities, electronics, and household items through affordable monthly instalments.

The partnership with Mastercard is expected to create opportunities for low-income individuals, merchants, and other SMEs by streamlining credit accessibility and minimising challenges in transacting. Lipa Later’s technology and products promote seamless shopping interaction and transaction processing for consumers and businesses. This is accomplished by making use of Mastercard’s broad merchant network, innovative payment mechanisms, advanced technological infrastructure, and other byproducts.

Lipa Later’s main operations are in Kenya, Nigeria, Rwanda, and Uganda. The company has built a base of over 350 000 consumers and 35 000 merchants and has invested in a world class technology to establish a seamless credit process that is one of the best in Africa. Towards the end of 2022, Lipa Later announced the acquisition of Sky Garden, a well-known Kenyan online marketplace.  Under the acquisition, consumers and businesses can purchase items from Sky Garden using any preferred payment method, including Lipa Later’s model which provides a payment plan that is flexible and affordable through monthly instalments.

Lipa Later’s business has grown through partnerships with well-known global brands, demonstrating the market’s confidence in the business model. The new partnership will enable Lipa Later to utilise Mastercard’s technology to facilitate more payments with the best digital security. Lipa Later’s goal is to offer an effortless consumer interaction via the Buy Now Pay Later method to encourage inclusion among previously underrepresented communities and stimulate economic growth in Lipa Later’s markets of operations and future markets across Africa.

Verdant Capital is advising Lipa Later on its fundraising.

Source: Citizen Digital, Lipa Later, TechAfrica, and Rochester

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