Craft Silicon has launched a groundbreaking product in Kenya known as “Spotit,” which is an innovative Get Now Pay Later (GNPL) offering.
The leading technology solutions provider unveiled Spotit at a vibrant event held at the Radisson Blu Hotel, Nairobi.
This product aims to provide eligible bank customers with convenient access to product financing directly from their mobile apps.
“Spotit has been carefully designed to meet the needs of both merchants and customers.”
By collaborating with merchants across the country, Spotit ensures that qualified customers can easily acquire the products they desire.
The process is simple: customers activate their accounts, select their preferred merchant on the app using a merchant code, and the merchant processes the items through a hub provided by Spotit. Once the purchase is confirmed and terms accepted by the customer, a unique code is generated to finalize the loan booking and confirm the sale completion for the merchant. Spotit promptly transfers funds to the merchant, facilitating an omnichannel shopping experience with a wide range of e-commerce merchants.
“Spotit distinguishes itself from competitors by fostering cooperation among three key stakeholders: the Bank, the merchant and the customer.”
This collaborative approach ensures that each party gains substantial value from the transaction.
Unlike other competitors primarily focused on lending, Spotit acts as a technology provider, streamlining the process for all involved parties.
The target audience for Spotit includes anyone with a bank account, with a broader vision of reaching unbanked customers in Kenya and beyond.
Spotit aims to encourage unbanked individuals to open accounts, providing them with opportunities for product financing and improving financial inclusion in the market.
Additionally, young professionals starting their careers can benefit from Spotit as it offers a gradual path to upgrading their lifestyle responsibly.
Addressing concerns about potential defaulters, Spotit targets existing customers within the banking ecosystem and implements a carefully considered scoring process.
The facility will be collateralized, ensuring efficient repossession in the event of default, with the support of partner merchants.
Spotit places a strong emphasis on customer centricity, seeking partners who prioritize the customer experience.
The organization aims to establish seamless and hassle-free interactions for users.
Initially launching in Kenya, Spotit plans to expand throughout Africa in the future, adopting a strategic approach to ensure full establishment and optimization before reaching broader markets.
“Spotit also stands out by guaranteeing timely payments to merchants, unlike traditional BNPL providers with delayed payment processes. Customers can expect a seamless journey, with a purchase process taking less than 5 minutes for both offline and online transactions.”
Group Chief Executive Officer (CEO) of Craft Silicon, Kamal Budhabhatti expressed pride in revolutionizing BNPL in Africa with Spotit.
He emphasized that the product offers unparalleled value to partners and customers alike, representing a significant step towards financial inclusion and empowerment for individuals across the continent.
Safaricom introduced a similar program called Faraja, is a Buy- Now -Pay- Later product that provides consumers with credit to make in-store purchases at select merchant stores countrywide.
“Through this service, members can make purchases of up to Sh100,000 and settle the payment at a later time. Faraja enables users to buy items ranging from as low as Ksh 20 to as high as Ksh 100,000. Unlike other credit products, this loan does not come with any additional fees.”
Currently, only a few businesses have adopted the Faraja lending option. These businesses consist of Citi Walk, Naivas Supermarkets and Good Life Pharmacy.
Also, more than 606,000 Lipa na M-Pesa businesses can utilise Faraja and receive payment in full for a product or service immediately after a customer makes a payment through the service.
Other platform offering similar services include Aspira Kenya that offers a “buy now, pay later” service. This service allows customers to make purchases without having to pay the full amount upfront. Instead, they can opt for installment payments over a specified period, making it easier for them to afford products and services.
“By using Aspira Kenya’s buy now, pay later service, customers can access goods and services immediately while spreading the cost over time. This can be particularly beneficial for those who may not have the immediate financial means to make a full upfront payment.”
Also, Lipa Later offers a convenient payment option that grants you unrestricted access to a wide range of products, including phones, furniture, fashion items, travel essentials, and kitchen/home appliances.
With this service, you can acquire these items immediately and pay for them gradually over affordable monthly instalments, which can extend up to 12 months.
Moreover, Lipa Later empowers retailers to offer their products to customers in manageable monthly instalments, effectively enhancing their purchasing capacity.
This arrangement enables both consumers and retailers to benefit from increased flexibility and financial convenience.