With early startups of buy now pay later focusing on merchants for asset finance, Creditclan has taken an interesting BNPL route with its school now pay later service, targeting support for parents around Africa with instalment fees payment.
The inspiration to go solve this problem began during the first wave of the pandemic, Femi Bejide, CEO and founder Creditclan explains. “In a relative owned school, I saw parents, just coming out of lockdown, struggle to pay their ward’s fees, especially traders, artisans and self-employed people whose earnings had been decimated by the pandemic”
Creditclan identified the gap where millions of parents can no longer afford to pay fees in bulk for their children, leaving schools struggling with cashflow issues. The Startup is subsequently partnering with Banks to solve this problem by building the ecosystem and simplifying the credit infrastructure to support instalment payment.
Since pivoting to BNPL mid-year, Creditclan has seen its footprint grow among thousands of schools, especially those dominated by parents categorized as underbanked or unbanked. “We are not just fancy tech” Femi continues, “we enter into the trenches to meet the schools where the pain points are, where the unit economics won’t make sense for the big banks”.
With 45% of Africa’s 1.35b population being children, Creditclan believes instalment payment for parents can help bridge the huge education deficit. “we are humble enough to understand the size of the challenge, but also confident we have the right technology, team and partnerships to continue to keep children in schools across Africa with instalment payment”, Femi concludes.
Creditclan is a BNPL platform helping banks, merchants, schools, and other businesses offer pay later option to consumers across Africa. Visit www.creditclan.com for more details.