Absa Bank Kenya has launched a “buy now, pay later” option for credit card holders, citing that this move will grant Absa’s credit card customers the option to either pay for their purchases in full, immediately, or in a structured repayment plan over a specified period of time and hence help its customers better manage their expenses. According to the head of Card Payments at Absa Bank Kenya, Linda Kimani, this option will be on a self-service basis that will allow customers to spread the cost of their purchases over time and enhance the bank’s endeavour to support its customers’ cashflows.
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According to a report released by the bank, a customer will opt to convert single or multiple eligible transactions into equal monthly instalments. By opting into the instalment plan, there will be no change to the available limit on the credit card, and the instalment will appear on the monthly credit card statement. Once the customer is billed, the instalment payment will be due after 20 days, and after the instalment payment is received, the customer’s available limit on the credit card will increase by the same amount.
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Absa Bank Kenya becomes the latest bank to adopt the “buy now, pay later” (BNPL) option into its operations, a move that will transform the bank’s sales this year amid the successful adoption of the plan by the customers. Data from Mapping Sales Trends to Watch in 2023, a global firm, shows that the system of payment has been growing for the last six years and has seen many firms significantly increase their sales over the years.
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In the same breath, data from the central bank of Kenya shows that the number of card-based transactions recorded as of May 2023 amounted to KES 5,490,450, which translated to a 5.7% increase compared to the number of card-based transactions recorded in April 2023. This, therefore, indicates the growing attractiveness and convenience enjoyed by customers through card payment options.
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