CredPal uses device financing to help non salary earners and low income earners access consumer credit

The duo started CredPal back in 2017, offering consumer credit and point of sale financing to salary earners. Now, they are offering non-salary earners easier access to consumer credit through device financing – a high performing product that took off early last year.

Cofounder/CEO Fehintolu Olaogun says that when CredPal initially took off, the focus was on salary earners but with the device financing product, they are helping non-salary earners and low-income consumers buy smart phones of their choice through their device financing product and also help them build a credit history. However, this is not to say that the product is not available to salary earners and middle-income consumers as well.

Device financing has been designed to provide access to the necessities that Nigerian consumers have found unaffordable. It has motivated more consumers to use the platform and become owners of high-end smartphones while paying overtime conveniently. With a seamless and effective process that requires customers making a down payment before getting the smartphone while they spread the rest of the repayment over 3-6 months.

“We know that offering this type of service isn’t common place in Nigeria but we had a significant amount of non-salary earners try to request for credit on our platform which encouraged us to build a product that works for them. It is satisfying to see how well it has taken off. Our customers, financiers and merchants are benefiting from this solution which is what’s most important to us.” says Cofounder/COO Olorunfemi Jegede.

CredPal’s device financing solution is distributed across online and offline retail stores while significantly improving bottom line and reduced cost of customer acquisition for these stores.

As for how sustainable the product is, the co-founders added that catering to this type of customer segment does not come without its risks but the company has found a way to mitigate the risks and reduce default rate to the minimum. They have turned these smartphones into collateral which encourages financial institutions to provide customers with loans while significantly reducing credit risk associated with this market segment.