CredPal Raises $15M for BNPL Improvements

CredPal, a buy now, pay later (BNPL) firm based in Africa, has raised $15 million in a bridge round comprising equity and debt, TechCabal reported Tuesday (March 29).

According to the report, the company will use the funds to broaden the consumer credit offerings in Nigeria, along with scaling across Africa. CredPal, in addition to its installment pay options, also allows for access to credit cards.

CredPal also plans to debut new partnerships with merchants on its CredPal Pay, a merchant suite letting businesses seamlessly accept BNPL services.

Per the report, this infrastructure will let them use the installment pay option for various means, such as credit payment links, checkout plugins, QR codes and a transaction management system.

“What we’ve done is encapsulate the lifestyle of the average working-class Nigerian and ensure that every person can find something specifically for them on CredPal,” CredPal CEO Fehintolu Olaogun told TechCabal in a recent interview. “For instance, a professional who earns ₦250,000 can get a credit card with a limit that they can pay back at the end of their billing cycle or use it to buy now and pay later.”

BNPL has become more prevalent in recent years, with more consumers embracing its payment flexibility in the midst of economic downturns and fluctuations. Africa is also beginning to see more BNPL activity.

PYMNTS wrote that as BNPL evolved, it has changed consumers’ relationships with — and ideas about getting and using — credit.

Read more: Third Generation of BNPL Holds Potential to Reshape Entire Credit Industry

“Bringing this within the consumer journey, allowing for an almost instant decision — then allowing the benefit to accrue over a flexibility period of three payments, six payments, 12 payments — if you think about it, in some industries, it’s become the norm,” Nandan Sheth, CEO of BNPL FinTech Splitit, recently told PYMNTS.

Sheth said the next incarnation of BNPL would likely consolidate and add new dimensions to consumer buying power through things like 5G speeds.

There’s also a chance it will see pure plays give some ground back to merchants who can offer BNPL in-house.