Customers are always looking out for new gadgets and the latest devices so that to keep up with the fast-moving world.
While the demand for new gadgets, devices and accessories is never-ending, the prices are always a turn-off. These products are not only expensive but most of the stores require customers to make full payments for any purchase.
Nonetheless, technology is addressing some of these challenges. Thanks to financial technology, customers are now able to get access to their favourite products on credit, commit to periodic instalment payments and fully own the products when the entire payment is down.
Among the pioneers of this buy now and pay later business model in Tanzania is Laina Finance; an integrated non-deposit-taking micro-finance service provider that extends payment plans for the purchases of goods and services by allowing customers to pay over a period of three to nine months. It offers micro-finance payment plans for electronic devices (smartphones and other home gadgets) and insurance policies. The platform offers flexible payment options that let customers buy what they want when they want it.
Founded in 2018, Laina Finance seeks to empower consumers with convenient and affordable payment solutions that help them manage their finances and achieve their goals.
“We are specializing in embedding micro credit to enable customers to buy goods or pay for services while paying in instalments. Since 2019, we have been in collaboration with Vodacom Tanzania, other mobile operators, banks and insurance companies. Our service is credit embedded in any transaction,” Tonny Missokia, the Co-founder and Director of Laina Finance noted, adding;
“For example, if a customer wants to buy a mobile phone, they simply walk into a Vodacom shop or any other partner shops that we have. The customer will give his/her information which will be sent to our system. The customer is prompted to give consent. Once they give their consent, we analyze the data and generate a payment plan for that customer. Once they accept the payment plan, they make an initial deposit to us and we pay instantly the full amount to the shop. The customer will get the mobile phone and then pay us in instalments. You can access our service by either going to one of our partner shops or through USSD or downloading our mobile APP available on both Android and IOS.”
Missokia noted that their service is a win-win for all stakeholders as it addresses the issues of affordability, and increases customers’ purchasing power while growing revenues for shops.
Even so, he noted that the main challenges they face include the fact that this line of business is very capital intensive thus requiring multiple funding options, delayed decision-making by potential funding partners and low attraction of investors in the Tanzania Fintech space.
Laina Finance features on Day 24 of the 40 Days 40 FinTechs initiative for Tanzania. First implemented in Uganda, 40 Days 40 FinTechs is an annual FinTech Innovation initiative presented by HiPipo to recognize and celebrate individuals and organizations who are making significant strides in promoting financial inclusivity through the use of technology.
It is aimed at promoting innovation and collaboration among FinTechs in Africa. The initiative is designed to provide FinTechs and startups with mentorship, training, exposure, and networking opportunities to help them grow and scale their businesses.
“We seriously underestimate the power of visibility of our brands. Most of the FinTechs and generally start-ups focus on building solutions and pitching them but when they go to some boardrooms, people tell them that they have never heard of their companies and solutions. This is what 40 Days 40 FinTechs is addressing,” Missokia said.
40 Days 40 FinTechs initiative Tanzania is part of HiPipo’s broader Include EveryOne Program that is generously supported by the Gates Foundation and implemented in partnership with Level One Project, ICTC Tanzania, Ideation Corner, Cyber PLC Academy, INFITX, Crosslake Technologies, NG Films, Founders Academy and Mojaloop Foundation.
The Include EveryOne program is a beacon of acceleration of FinTech Innovation, empowerment for Women in FinTech and a catalyst for investment and development in the ICT sector. Minus 40 Days 40 FinTechs, other initiatives under the Include EveryOne Program are the FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit and Incubator, Digital Impact Awards Africa and the Digital and Financial Inclusion Summit.
HiPipo is recognized as a premier advocate of digital Innovation and financial inclusion champion, a fervent proponent of the #LevelOneProject. HiPipo has been at the forefront, actively promoting digital innovation, Instant, Inclusive Payment Systems (IIPS), and DFS across Africa. With a legacy of advising, mobilizing, and facilitating the adoption of inclusive financial services, HiPipo’s efforts have been nothing short of transformative! For almost two decades, HiPipo has successfully facilitated the inclusive adoption of these crucial services.