As Buy Now Pay Later (BNPL) platforms in Africa adapt their playbook, leading split payment platform, clan (formerly Creditclan), introduces swap now pay later to accommodate the growing segment of item upgrade finance across Africa.
In a continent with a low purchasing power and an imperative need for financial inclusion, Clan believes providing upgrade services on already existing items will represent a way for consumers to access new products without having to part with significant cash.
Swap as a service
Speaking at the product unveiling, the Chief Executive of Clan, Femi Bejide, said the company was powering this swap service in partnership with financing banks. This gives customers access to live products of over 90,000 merchants across different categories from phones to computer accessories and fashion.
“We have built the technology which enables us list live products of thousands of verified merchants. Customers can then pick up new items by swapping in-shape old ones, pay a little equity contribution, and have balance spread over 3-6 instalments.”
He further explains that eligibility will be determined by a simplified credit algorithm, which reaches a conclusion in 3-5 minutes with funding provided in partnership with banks and finance houses.
“For now we limit swappable items to phones, which can be exchanged for a variety of products including phones, computers, electronics and fashion items.” Femi explained.
Expanding on BNPL success
Over the last twelve (12) months, clan has offered split payments within four (4) ecosystems. They have powered split payments for rent, tuition and asset finance. In the latter category, it has successfully listed the products of 90,000 merchants with live updates weekly across all social channels.
Clan is also on course to power its first 10,000 families on monthly rent payment making it the leading split payment company in this fledgling rent sub-category. Finally, Clan supports schools and parents to pay tuition in installment.
Supported by Banks and FIs
Clan is supported by some Banks and FIs which finance the transactions enabling it focus on customer origination and credit profiling.
“We are thankful for the support the banks offer. We will continue to grow capacity as we expect to grow our volume 5x by expanding our balance sheet partnership over the next 12months.”
Clan is a split payment platform helping businesses and individuals offer instalment payment option to consumers across Africa. Formerly a credit infrastructure company, Clan uses its deep understanding of consumer credit and profiling algorithms to build Africa’s fastest growing consumer finance channel.
Visit www.clan.africa for more details