In 2018, Nigeria overtook India to become the world’s poverty capital. Nearly 90 million Nigerians, almost half the country’s total population, are living in extreme poverty. This figure demonstrates the extremely low standard of living in the country. It also means that half the country’s population cannot acquire or enjoy basic necessities due to their low purchasing power.
Worse still, given the current state of the country’s economy and the daily rising cost of living, more and more Nigerians are moving down the socio-economic ladder. It won’t be implausible to say Nigeria’s middle class is the new working class, in terms of earnings and purchasing power. Many (middle-class) Nigerians live paycheck to paycheck and are increasingly finding it difficult to meet their needs. And people often have to let go of a significant part of their earnings, if not all, to purchase things.
To aid people’s purchasing power and alleviate their financial burden, several platforms that enable people to buy and pay for items in instalments have sprung up. These credit solutions platforms give Nigerians the option to purchase certain products, mostly electronics, and spread payment across a specified period of time. To establish trust and ensure financial safety, these platforms often require a valid identification card (voters card, international passport, or driver’s licence), and a bank statement or bank verification number. Here is a list of some of these platforms:
Nowlater is an open-ended instalment loan product with standard repayment tenures of three, six, or 12 months. Nowlater creates a platform where customers can make purchases from local and international brands, and pay back in instalments, giving them the flexibility they require.
Their products and services cover fashion and beauty, household appliances, food and groceries, electronics, and furniture. Once a customer agrees to use Nowlater, a lending partner pays the merchant on the customer’s behalf in exchange for a promise to repay the same amount plus a finance charge as determined by their creditworthiness.
Easybuy is a mobile device financing platform operated by Palmcredit, a consumer loan app. On this platform, customers get to purchase mobile phones and other devices on credit and pay back in instalments. Customers are obligated to make a 30 percent deposit of the phone price or price of the device they intend to purchase, with available loan tenures of three to six months. Upon completion of registration and the initial deposit, the agreed monthly repayment is debited automatically from the borrower’s bank account until the loan tenure expires. The interest rate on Easybuy varies depending on the loan tenure.
At Spredda customers can purchase home appliances, electronics, mobile phones, furniture, computers, generators, fashion and beauty products, sports and fitness products, etcetera at affordable prices. Spredda offers two instalment payment options namely PayQart and Lay-by.
PayQart is a third-party application that allows the immediate purchase of an item with a six-month payback tenure. Lay-by is an interest-free instalment payment option that allows customers to reserve products while they make easy payment over a maximum period of three months. With a minimum down payment of 20 percent, Spredda keeps the product for customers at the retail price with no extra cost and delivers it to their doorstep upon completion of payment.
CDcare is a marketplace for Nigerians to buy their favourite gadgets and household appliances and pay in instalments at zero percent interest. The company was founded in 2020 by Oluwatobi Odukoya and Ayodeji Farohun, both CEO and COO, respectively.
CDcare operates a flexible instalment payment scheme that helps customers pay an equal amount weekly or monthly towards buying an item. The desired item will be delivered before full payment in the middle of the customer’s instalment period (50 percent instalment). Then the payment continues until complete.
All purchase orders are subject to approval. Any duration for payment as chosen by a buyer must run its course and it cannot be reviewed once payment starts. If a customer wants to get a product that is not available on the app, there is a ‘Request a product’ feature that allows you to ask for that product to be provided on CDcare. The payment process is seamless, secure, and powered by Flutterwave.
Founded by Fehintolu Olaogun and Olorunfemi Jegede in 2018, CredPal is a revolutionary credit solution geared towards providing seamless credit access for businesses and individuals across developing economies. With CredPal, consumers can buy anything across various online and offline merchants and pay for it in instalments.
CredPal provides point-of-sale consumer credit to low and middle-class income earners in Nigeria. It also provides users with a CredPal credit card. CredPal operates with Visa cards that serve users at POS channels and ATM points, making it convenient to access consumer credit.
Zoomba is an e-commerce marketplace dedicated to providing convenient payment plans to willing customers. On Zoomba, customers can lock down items they desire to buy in layaway and pay in instalments. Customers can purchase phones, beauty products, home appliances and groceries on the platform. Once a product is marked as layaway, a history of payment transactions and the value of all future pending payments according to what has been agreed, is available to both the merchant and buyer. Layaway items are set aside and noted as ‘Off the Shelf’. However, just like other platforms, Zoomba has its terms and conditions in case of a breach in agreement.
The Alternative Mall (TAM) is an e-commerce platform developed by Sterling Alternative Finance (SAF) to provide customers with a great shopping experience and flexible payment options. It is owned and operated by Sterling Bank Plc. On Alt Mall, customers can either pay with a card or via the OneBank App.
On the Alt Mall platform, goods can be purchased for up to 33.3 percent of a customer’s annual income. The maximum limit is N2 million and the repayment tenure extends for up to 12 months. No deposit is required and there are no hidden charges. Better still, the Alt Mall service is available to both salaried and non-salaried individuals.
ParktelOnline is the online marketing arm of Parktel International Limited, a mobile phone company specialized in the distribution of mobile phones and mobile devices of different brands and models in Nigeria and within West Africa.
This smartphone retailer also provides customers with easy payment plans. The ‘Buy now pay later’ plan is available in just two states – Abuja and Lagos. The easy payment plan works for only products that are worth N50,000 or more. This allows customers to pay in instalments for any high-end device of their choice. However, only customers with a working salary account within Lagos and Abuja are eligible for this offer.
Betacar is an e-commerce automotive platform that helps with auto financing. Betacar financing gives salary earners and structured business owners in Nigeria the opportunity to buy quality certified ‘tokunbo’ cars with payment spanning 12 to 24 months.
Customers apply for the loan online and wait for an approval or rejection email that’ll come within 10 minutes. The customer’s desired car is provided within one week after submission of the complete package.
Established in 1998, SLOT Systems Limited is one of the oldest leading retail companies for affordable and durable mobile phones, computers, accessories, and various types of electronics in Nigeria. In addition to the sale of the aforementioned gadgets, Slot also provides the following services; mobile phone engineering, phone screen insurance, phone trade-in, stolen phone recovery, and a flexible payment plan for customers.
To enjoy the flexible payment plan, customers are required to call or visit any Slot outlet to make enquiries about his or her desired purchase. The retail company has about 60 outlets spread across 18 states in Nigeria.
Written by Adekunle Agbetiloye