Solar firm M-Kopa in smartphones sales deal with Samsung – VIDEO

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Solar firm M-Kopa in smartphones sales deal with Samsung – VIDEO


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Summary

  • M-Kopa has added the Samsung Galaxy A10s to its platform through which it also sells other goods such as solar panels, light bulbs, rechargeable radio and TV sets.
  • In the micro-loan model, customers pay a certain deposit for a product then settle the balance through monthly or daily mobile payments.

Pay-as-you-go solar provider M-Kopa has signed a partnership with Samsung that will see customers acquire and pay for smartphones in instalments.

M-Kopa has added the Samsung Galaxy A10s to its platform through which it also sells other goods such as solar panels, light bulbs, rechargeable radio and TV sets.

In the micro-loan model, customers pay a certain deposit for a product then settle the balance through monthly or daily mobile payments.

The total amount charged include a premium on what a customer would pay for the products in cash.

Customers acquiring the Samsung Galaxy A10s will pay a deposit of Sh3,499 and make daily payments of Sh60 for one year.

This brings the total cost to Sh25,399. The cash price is Sh12,200 or 52 percent cheaper.

The Samsung deal expands the range of mobile phones on its platform, with the company having started with the sale of Nokia and Huawei brands last year.

M-Kopa, which has partnered with Safaricom #ticker:SCOM, says it has sold products to more than 450,000 low-income Kenyans.

According to Safaricom chief customer officer Sylvia Mulinge the growth for this model has been driven by the informal market, known as kadogo economy where households are price-conscious and buy low-priced goods to meet their daily needs.

“There about eight million people who are not using smartphones mostly due to low incomes,” said Ms Mulinge.

“This is reflected on their spending and yet it would take some time to save to buy a good quality phones. The amount to be paid in this model will be progressive for them to be connected.”


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