Nigerian fintech CredPal has partnered with the ride-hailing startup, Bolt, to enable its users to “ride now and pay later”. The partnership is a conscious effort from Credpal to create easy credit financing solutions for customers and bolster its Buy-Now-Pay-Later products.
Users can enjoy the CredPal Ride-on feature by signing up on the CredPal app and activating an option to pay for their Bolt rides at the end of the month or any convenient date when they are financially buoyant.
According to the CEO and Co-Founder of CredPal, Fehintolu Olaogun, the solution will enhance financial management for various income earners in Nigeria.
“I believe transportation is one of the daily essentials that a working Nigerian considers when planning a monthly budget, so what we’ve done with CredPal Ride-On is offer a choice of using credit that has been availed to them to better manage their monthly expenses.”
Fehintolu Olaogun
In his remarks, Bolt’s Country Sales Manager, Kwaku Ampadu-Manu, noted that Ride-On is a necessary product that could help accelerate the adoption of digital payments while providing Bolt riders with an alternative payment option.
“This partnership gives riders access to a much-needed alternative that meets their mobility needs without immediately spending out of pocket, and we are happy to work with CredPal to foster our mission of making our cities for people and not cars.”
Read also: CredPal secures $15m debt equity funding, to expand into Ghana, Kenya
How does the service work?
To access this, users must sign up on the CredPal platform to enable it to underwrite their trip costs.
Following this, they can choose CredPal as a payment option and activate an option to pay for their Bolt rides at the end of the month. Users can also choose Ride-On, which allows for flexible repayment within the recipient’s salary pay period.
What this means for Nigerians
Over the past three years, the emergence of buy now, pay later (BNPL) companies has been one of the most welcomed developments in the Nigerian startup scene. Most of these firms let customers acquire goods and services that they otherwise would have to put off buying for months. It is no surprise that Nigerians seem to have taken to it immediately.
These BNPL models will allow Nigerians to enjoy ride-hailing services even when they are cashless and pay at their convenience. This will also drive the revenue of the ride-hailing companies, which is. a win-win situation for both parties.
Read also: Bolt launches the First Ride-Hailing Inter-City Trip in Nigeria
What the partnership means for both companies
Through this service, CredPal could boost usage of its app as a payment option, while Bolt could attract increased patronage of its service.
Currently, the service is only accessible after users have signed up on CredPal, as the startup is responsible for underwriting the cost of their trips. However, unlike regular BNPL offerings, users do not have to pay a portion of their fare during the ride.
Instead, they can choose CredPal as a payment option while they repay the cost of the ride at the end of the month. Like its regular BNPL offer, users are pre-qualified based on specific parameters, while Ride-On has been structured so that repayments coincide with the user’s salary date.
Even though CredPal is probably the first third-party firm in Nigeria to offer a ride now, pay later option, this isn’t the first time a startup has offered this service to its consumers. The Indian ride-hailing company Ola introduced a credit option in 2016 that allowed users to book rides without paying upfront for up to seven days. Similarly, GoCatch, an Australian ride-sharing business, introduced Zip, a BNPL service, as a payment option.
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