Absa Bank, one of the leading financial institutions in Kenya, has introduced a new feature called Buy Now, Pay Later (BNPL) aimed at assisting its customers in better managing their expenses.
This innovative feature is accessible through the Absa mobile and internet banking platform and serves as a self-service payment option. It offers customers a convenient way to handle their spending by allowing them to spread the cost of their purchases over time.
With the BNPL card feature, Absa’s credit card customers now have the choice to either make an immediate full payment for their purchases or opt for a structured repayment plan spanning from three to 12 months. This flexibility empowers customers to extend their spending capacity and ease their financial obligations.
During the launch of this new solution, Linda Kimani, the head of card payments at Absa Bank Kenya, highlighted the benefits it brings to customers. She emphasized that in today’s challenging economic environment, where individuals often face tough spending decisions, there is a growing need to manage expenses and make purchases without straining one’s finances.
The BNPL card feature, according to Kimani, provides customers with the convenience and flexibility they require to make payments gradually over time. Furthermore, Kimani pointed out that this feature allows customers to better handle expenses such as school fees or holiday bookings while maintaining a healthy financial outlook. She believes that it will provide customers with more available cash and greater control over their finances, facilitating their ability to accomplish their goals.
Absa Bank’s decision to introduce the BNPL card feature aligns with recent findings from the Central Bank of Kenya, which reported a 5.3% increase in card-based transactions as of March 2023, with over 5,669,185 transactions recorded. This move demonstrates Absa Bank’s commitment to meeting the evolving financial needs of its customers and enhancing their financial well-being.