Now and then, you may have to purchase a particular product or service. Usually, most of these purchases are done with full payments. That is to say, if Item X costs TZS 200,000, the buyer will make this payment and then acquire the said item.
The other way goods and services are acquired is on credit. This is divided into two avenues – Buy Now and Pay Later or Save Now and Buy Later.
Under Buy Now and Pay Later, the buyer takes the product on credit with a clear payment plan of when s/he will clear the product fee and then completely own the purchased product or service. This model usually factors in an interest, over and above the actual cost of the product considering that the payment doesn’t come at once.
The opposite of Buy Now and Pay Later is Save Now and Buy Later. Under this model, the buyer identifies the goods or services s/he intends to purchase, agrees on the price with the seller, signs the agreement and then starts saving money towards this purchase; the money is saved with the seller. As soon as s/he saves enough to buy this item, s/he then takes his product or consumes the service.
Thanks to financial technology, both Buy Now and Pay Later and Save Now and Buy Later are fast-growing across Africa.
In Tanzania, Tunzaa FinTech enables unbanked customers to save for purchases from a curated marketplace of trusted merchants with secure savings and payment APIs. The platform is built for everyday Africans who want to improve their financial habits with a save now and buy later model which allows users to purchase goods and services from vetted vendors who accept payments installment payments regarding of the amount.
According to Ng’winula Kingamkono, the Founder and CEO of TUNZAA FinTech, Tunzaa – ‘to save’ in English, is a digital platform that allows people to pay for products and services in instalments, in advance and as soon as they finish the payments, they get the products or have the services delivered.
“Tunzaa is available as both a web and mobile APP – accessible on Google Play and Apple Store. We are also accessible on the Vodacom MPESA APP. You simply come to our platform and pick a product of your choice, then you can pay for your product in instalments -daily, weekly or monthly. As soon as you finish the payment, you get the product,” Kingamkono said.
He added: “We aim at helping Africans understand their consumption, spending and saving habits. We then help them use their income to pay and acquire what they need. We give them the power to pay when they want and what they want until the full payment is made. We support both mobile money and bank card payments. Ours is to ensure that once the payment is complete, you get a genuine product.”
Kingamkono noted that the main challenges they faced when first rolling out this Save Now and Buy Later business model were Limited Trust among customers, Low Compliance and Lack of Enough Products to satisfy the appetite of customers. He nonetheless noted that they have since taken steps to address these challenges and thus serve more customers.
We interacted with Tunzaa FinTech on Day 22 of the 40 Days 40 FinTechs initiative for Tanzania. First implemented in Uganda, 40 Days 40 FinTechs is an annual FinTech Innovation initiative presented by HiPipo to recognize and celebrate individuals and organizations who are making significant strides in promoting financial inclusivity through the use of technology.
It is aimed at promoting innovation and collaboration among FinTechs in Africa. The initiative is designed to provide FinTechs and startups with mentorship, training, exposure, and networking opportunities to help them grow and scale their businesses.
Kingamkono noted that the 40 Days 40 FinTechs gives Africans a chance to see what their fellow Africans are doing, something that further inspires them to work harder.
“Everything starts with a conversation. A platform like 40 Days 40 FinTechs gives us a chance to exchange ideas with different stakeholders. It also allows us to share our story; something that inspires other young innovators out there. We need to hear more stories that we can relate to and this is one way of doing it,” Kingamkono said.
40 Days 40 FinTechs initiative Tanzania is part of HiPipo’s broader Include EveryOne Program that is generously supported by the Gates Foundation and implemented in partnership with Level One Project, ICTC Tanzania, Ideation Corner, Cyber PLC Academy, INFITX, Crosslake Technologies, NG Films, Founders Academy and Mojaloop Foundation.
The Include EveryOne program is a beacon of acceleration of FinTech Innovation, empowerment for Women in FinTech and a catalyst for investment and development in the ICT sector. Minus 40 Days 40 FinTechs, other initiatives under the Include EveryOne Program are the FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit and Incubator, Digital Impact Awards Africa and the Digital and Financial Inclusion Summit.
HiPipo is recognized as a premier advocate of digital Innovation and financial inclusion champion, a fervent proponent of the #LevelOneProject. HiPipo has been at the forefront, actively promoting digital innovation, Instant, Inclusive Payment Systems (IIPS), and DFS across Africa. With a legacy of advising, mobilizing, and facilitating the adoption of inclusive financial services, HiPipo’s efforts have been nothing short of transformative! For almost two decades, HiPipo has successfully facilitated the inclusive adoption of these crucial services.
