In a bid to expand access to credit card services in Uganda, Absa Bank has launched two new credit card digital innovations named ‘Buy Now, Pay Later’ and ‘Credit Card-Initiated Payments’.
‘Buy Now Pay Later’ will enable customers to make payments off their credit cards and choose flexible repayment plans at reduced interest rates while ‘Credit Card Initiated Payments’ will allow customers to move money from their credit cards into their personal accounts and Mobile Wallets to enable them draw cash or pay for goods and services incase POS services are not available.
“This new product offering is a testament to our dedication to constant innovation to provide high-quality and affordable banking services. This is a pioneer innovation, a first-to-market solution which builds on our existing range of affordable and convenient digital financial services. This product is structured to offer convenience to our customers whose consumption habits continue to shift with an increasing trend towards convenience, modern lifestyle, holistic experiences and value offerings, said Michael Segwaya, Executive Director and CFO, of Absa Bank Uganda.
The credit card offerings are in response to a shift and preference for digital payment systems among the population driven by the movement towards cashless transactions.
“There is a disruption to consumer behaviour driven by the emerging middle class who require convenient, high quality and affordable banking solutions to suit their lifestyle. By signing up, customers will enjoy favourable interest rates, can choose a payment plan on their credit cards that suits them and enjoy simple and convenient payment plans through a host of digital channels available at Absa including internet and mobile banking,” said Musa Jallow, Retail and Business Banking Director, Absa Bank Uganda.
According to the African Development Bank, Africa now boasts the world’s fastest-growing middle class, currently standing at 24%, a 100% rise in less than 20 years.
The growth of the middle class is accompanied by investment opportunities, a change in consumer behaviour and a rise in total purchasing power, which boosts global demand. Other emerging trends include the growth of ecommerce which has necessitated supporting digital financial services and convenient e-payment channels.
According to data from the US International Trade Administration, Africa is forecast to surpass half a billion e-commerce users by 2025. This reflects a steady 17% compound annual growth rate (CAGR) of online consumers in the market.
The product also allows customers to easily track, manage or even cancel payment plans and make purchases digitally using their credit cards. It is also possible to have multiple payment plans running.
“We have signed up several reputable partners with attractive goods and services ranging from Tours and Travel to digital gadgets including handheld devices and laptops. Signing up for this product is easy. I encourage customers to sign up for an Absa credit card today to take advantage of what we can guarantee is the most attractive, convenient and affordable offer on credit cards in this market,” Jallow said.