The most recent news in the financial sector is the Visa and Branch partnership. The Kenyan Fintech industry is seeing changes by the day. New inventions are coming up in a fortnight as companies compete to give people the best product or service. Branch, which is a renowned mobile loan application has taken its services a notch higher by partnering with Visa to provide merchants with credits. Branch is an example of a company that is working on its service delivery to ensure that most of its services are compatible and customizable to suit all business needs.
During the announcement of the partnership, Branch announced that it would provide financing to merchants who accept payment via Visa.
The loans will be provided with an aim of enabling the merchants to fund growth of their businesses through supplemental stock, infrastructure investment and other operational needs.
More about Branch and Visa partnership
Credits have been an issue in Kenya with merchants seeming not to have enough of them. as such, Visa and Branch isolated this as an opportunity.
Through the partnership, the two companies intend to significantly reduce the cost of cash for the merchants.
Eligible merchants will be able to access loans of up to Ksh. 30,000 which can be repaid within 6 months. The loans will be disbursed directly to the merchant’s phones through M-Pesa.
Sunny Walia, Visa’s General manager for East Africa had this to say while speaking at the launch of this partnership. “We are happy to work with Branch to offer seamless access to finance through our Visa network. As they seek to provide micro-credit facilities to merchants across Kenya. With this partnership, we seek to offer value beyond just transactions. We would like to help the merchants grow their business and drive financial inclusion. Small merchant segments are often unable to access quick loans.”
The partnership between Visa and Branch is an indicator of an ever-growing credit demand in the country.
This calls for all Fintech companies in Kenya to develop creative ways to ensure most merchants have access to quick and flexible credits.
Mobile loan apps have played a primal role in the development of small businesses in the country.
