BusinessDay
NigeriaDecides2023

How embedded finance can make mobile devices affordable

Providers of embedded services such as slot Nigeria allow customers who can’t afford their product the opportunity to purchase and pay at a future date.

This service which is known as buy now, pay later ensures that installment repayment covers the item being purchased by the customer such as smartphones, laptops, and accessories amidst other electronic mobile devices.

Experts say the rapid penetration of Nigeria’s financial services over the years has been noteworthy, and the increasing ownership of smartphones, especially among the low-income groups, has been instrumental in reforming the financial services landscape.

A report on Statista on mobile internet user penetration in Nigeria shows that in 2022 51.59 percent have access to smartphone devices compared to 48.12 percent in 2021, while 48.41 percent of the population in 2022 have access to feature phones compared to 51.88 percent in 2021.

Income remains constant as the consumption pattern of the economy rises thereby making low-income earners unable to afford a smartphone, as a result, ownership tends to be at a slow pace.

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An average Nigerian who earns 3500 dollars yearly, with a high rate of consumption that has doubled over the years, and bears all expenses may want to consider spending on his basic amenities such as food, clothing, and shelter before necessarily considering getting a smartphone.

Leveraging on embedded services offerings, one could afford to purchase a smartphone at a price of N90,000 with his first installment, not below N30,000, and the rest of N60,000 spread over three months which will be remitted by the bank on standing order to the embedded finance provider. Aside from Slots, there are other service providers including Konga, Jumia, etc.

Embedded finance is designed to streamline financial processes for consumers, making it easier for them to access the services they need when they need them.

Consumers will be able to pay for online purchases without entering their bank details or instantly take out a consumer loan on digital platforms outside banks, for example. Other examples include lending, payments, wallets, and bank accounts, but without the bank.

“By giving these people access to basic financial instruments and allowing them to harness easy credit, these internet-enabled smartphones give enough power in the hands of the poor, who can now be encouraged to save and get rid of the tangles of poverty,” Neel Juriasingani, CEO and Co-founder, Datacultr, a web-based financial software solution, said.

The advances in technology and especially mobile devices have revolutionized financial services provision and introduced new models of serving the poor.

Following the successful application of m0bile devices and financial services which is helping to give more Nigerians easy access to financial services. industry analysts believe financial inclusion would certainly not be a distant goal to achieve