Femme StaffLate last month, Absa Bank introduced “Buy Now Lipa Pole Pole,” a user-friendly Buy Now, Pay Later (BNPL) card feature on their mobile and internet banking platform. This unique initiative in the Kenyan market allows customers to manage expenses by spreading purchase costs over time. According to data from the Central Bank of Kenya, the number of card-based transactions recorded as of March 2023 topped 5,669,185, denoting a 5.3 percent increase compared to the number of transactions recorded in February 2023. This is an indicator of the growing attractiveness of the convenience of the card payment option.
One of the merchants that Absa will be working with for Lipa Pole Pole is Samsung Electronics, to enable customers to purchase mobile phones and consumer electronics through flexible payments. We caught up with Pauline Munyoki at the launch of Samsung’s fifth generation foldables to get more information on the partnership and the scope of Buy Now Lipa Pole Pole even outside of Samsung.
Pauline is the Senior Product Manager at Absa, and this is what she had to say.
Why did Absa introduce the Buy Now Lipa Pole Pole facility?
We introduced this facility to give customers flexible repayment options to buy big ticket items which they can pay for over time. To enjoy the convenience now without immediate expenses and stretch the repayment for up to 12 months at their convenience.
Which dealers can Absa credit card users shop from?
Absa is working with dealers across different outlets for electronics, furniture, school fees payment and travel among others. Customers in the construction industry can even purchase building materials through this service.
Why did Absa choose to partner with Samsung?
We love working with Samsung because we are passionate about innovations and technologies that make life better for our customers. Working with Samsung guarantees us these solutions, and at the same time they have different options with devices ranging from Ksh.10,000/- all the way to the newly launched flagship products. Customers have a wide range of products to choose from based on their budgets.
Is the partnership with Samsung for the whole range of their products including domestic appliances like refrigerators and washing machines?
Yes, it is open to any Samsung phones and electronics. You can go to any Samsung outlet and enjoy the Lipa Pole Pole benefits on any item above Ksh.10,000/-
What are the incentives for people to consider Lipa Pole Pole?
Flexibility and discounted interest rates. You want to enjoy a facility now, but you don’t have the money at that moment. At Absa we give you a limit to use and stretch that repayment to your convenience.
For instance, many outlets run sales but by the time they are announced you do not have the money. Absa Lipa Pole Pole will give you the opportunity to take advantage of the sale duration before that window closes.
Other than being an Absa card holder, are there any other eligibility criteria or requirements to use the Buy Now Pay Later service?
This facility is available to our Absa credit card holders but that does not mean that other consumers cannot use it. All you need to do is visit any Absa branch and we will review your case based on your income and money flow. We will then give you a limit of how much you can spend. You can also call our contact center and we can arrange for a sales representative or staff member to come to you.
How much money should someone have to qualify for Absa’s Lipa Pole Pole?
It is not money that you need to have in your account. It is your track record and your money flow that tells us what limit you qualify for. Furthermore, you don’t need to have an account or credit card with Absa to take advantage of our Lipa Pole Pole facility.
How are the interest rates like?
If you pay within 30 days, you don’t pay any interest at all. If you choose other flexible repayments of 3, 6, and 12 months, then we offer discounted interest rates.
Is there an upper limit?
It is open to any amount above Ksh.10,000/-
