The pay later module has deepened more roots in electronic accessories in the capital city of Kampala, Uganda giving a chance to esteemed customers.
Stanley Sempija signed up as a merchant in the buy now pay later business module to help him widen his client base in the country.
The e-commerce platform offers him credit for his items. Customers can then access the products online while paying up in installments.
“I realize there is a very bigger portion of people who do not have access to cash or access to big amounts of cash to spend at once. Because the products I sell are premium products, they cost above a million plus. So most people wouldn’t want to spend that cash all at once, but they would be fine with spending it in a period of, let’s say six or 12 months”, a dealer in Electronic Accessories Stanley Sempija said.
Individuals and businesses can also sign up on the platform and access credit to purchase items that are payable in installments. The flexible payment plans can go for a period of up to 12 months.
“As a merchant, it increases my sales and it also increases, the number of products that customers are able to take and the amount of money I can get from every customer”, Sempija added.
In Uganda, the Buy Now pay later concept is relatively new and it’s beginning to pick up. Since the business module started about three years ago, the pay later platforms have grown to about five in number, and there’s potential for more uptick from small businesses.
“You need to have more purchasing power, in order to be able to afford products and live a decent life. You need to get to your school, your children, to some of the best schools”, another electronic dealer stated.
The Global Buy Now pay later market is projected to grow from about 23 billion dollars (Ksh 297.5 billion) in 2022 to more than 90 billion dollars in 2029.
The recent economic meltdown due to the Russia-Ukraine conflict and tread disruptions caused by COVID-19 increased E-commerce penetration. It’s a sought-after purchase method for electronic and furniture shops, but other traditional shops are also taking it up.
The buy Now pay later system is now a more popular choice for the growing middle class, allowing them access to high-class value goods at flexible payment terms.