FlexPay Applied sciences is a Kenyan fintech out to allow shoppers to afford merchandise that might have in any other case been out of attain for them.
The startup permits prospects to buy at accomplice retailers, reserve merchandise and pay over a time frame, at no added value. It initially partnered with a Kenyan retailer throughout launch however scaled in 2020, and has up to now grown its service provider community to 600. This variety of accomplice retailers is about to develop additional because the startup, which is a part of the 2023 Startup Battlefield 200 cohort, widens its “save now, purchase later” choices.
“We wish FlexPay to be like an energetic checking account in that when a shopper will not be paying for retail merchandise, they’re saving and paying towards a trip, and even college charges,” stated FlexPay co-founder and CEO Richard Muchomba, including that the startup is within the means of sealing partnerships that can enable its customers to e book and pay for flight tickets and accommodations.
That is a part of its continued technique to retain prospects and follows the introduction of its preliminary product dubbed FlexPay Targets, for customers with set financial savings ambitions; FlexPay Chama, which allows teams to avoid wasting collectively; and Mama Prime, for maternity care financial savings.
Its prospects join via the app or its accomplice retailers (together with offline ones) to start making funds. Web shoppers entry FlexPay as a fee possibility throughout checkout.
“Offline retailers register prospects through USSD, and in a means, store homeowners have change into our brokers,” stated Muchomba, who co-founded the startup with Johnson Gituma (COO).
Clients make an preliminary deposit via FlexPay and pay the rest over a predetermined interval.
“We don’t set the variety of installments or particular quantities prospects ought to make, however within the retail trade, most retailers enable funds inside three months. Fee time adjustments relying on the trade; for the journey trade, it may be as much as one 12 months,” he stated, including that its success price is 96%.
FlexPay will get a 5% fee for each services or products bought via its platform. It claims to have served over 200,000 prospects up to now, a quantity that’s set to develop after its incoming launches in Uganda and Nigeria.
FlexPay’s “save now, purchase later” mannequin is in contrast to the credit-driven purchase now, pay later (BNPL) mannequin that prices curiosity and requires prospects to have an excellent credit score rating to qualify.
“The rationale individuals are shopping for merchandise utilizing FlexPay is as a result of this mannequin has historically been there. We simply digitized it. Folks can’t afford to purchase high-ticket gadgets at one off and we expect the pay later mannequin is a greater technique for the African market,” stated Muchomba.
“Behind the scenes, we’re gathering the info we plan to make use of in constructing financing merchandise which can be inexpensive and sustainable.”
FlexPay has up to now raised $785,000, backed by various buyers, together with the Acacia Group (previously the Cairo Angels Syndicate Fund), LoftyInc, Skilled Dojo, Google Black Founders Fund, and Renew Capital.