FlexPay Technologies It is a Kenyan fintech company that aims to enable consumers to purchase products that would otherwise be out of their reach.
The startup allows customers to shop at partner merchants, reserve products and pay over a period of time at no additional cost. It initially partnered with a Kenyan retailer during the launch but expanded in 2020, and has so far successfully expanded its merchant network to 600. This number of partner merchants is set to grow further with the startup, which is part of The 2023 Startup Battlefield 200 collection expands its “Save Now, Buy Later” offering.
“We want FlexPay to be an active bank account, where when a consumer doesn’t pay for retail products, they save and pay for a vacation, or even school fees,” said FlexPay co-founder and CEO. Richard MuchumbaAdding that the startup is in the process of concluding partnerships that will allow its users to book and pay for airline tickets and hotels.
This is part of its ongoing customer retention strategy and comes after the introduction of its initial product called FlexPay Targets, for users with specific savings ambitions; FlexPay Chama, which enables groups to save together; and Mama Prime, for maternity care savings.
Its customers register through the app or partner merchants (including offline merchants) to initiate payments. Online shoppers access FlexPay as a payment option during checkout.
“Offline merchants register their customers via USSD, and in a way, the store owners become our agents,” said Muchumba, who co-founded the startup. Johnson Gitoma (coo).
Customers make an initial deposit through FlexPay and pay the rest within a pre-determined period.
“We do not specify the number of installments or the specific amounts that customers must pay, but in the retail sector, most merchants allow payment within three months. The payment time varies depending on the industry; for the travel industry, it can be up to one year,” he said, adding that Its success rate reaches 96%.
FlexPay earns a 5% commission for every product or service sold through its platform. It claims to have served over 200,000 customers so far, a number that is set to grow after its upcoming launch in Uganda and Nigeria.
FlexPay’s “save now, buy later” model differs from the credit-based buy now, pay later (BNPL) model that charges interest and requires customers to have a good credit score to qualify.
“The reason people buy products using FlexPay is because this model has been there traditionally. We have just digitized it. People cannot buy expensive items in one go, and we believe the pay later model is a better way for the African market,” Muchumba said.
“Behind the scenes, we are collecting data that we plan to use to build affordable and sustainable financing products.”
FlexPay has raised $785,000 to date, with backing from a number of investors, including Acacia Group (formerly Cairo Angels Syndicate Fund), LoftyInc, Expert Dojo, Google Black Founders Fund, and Renew Capital.