Nigerian fintech company CredPal has officially partnered with the prominent ride-hailing startup, Bolt, to introduce an innovative "ride now and pay later" solution for its users. This collaboration, known as CredPal Ride-on, represents a strategic move by CredPal to broaden its credit financing solutions for customers and strengthen its Buy-Now-Pay-Later (BNPL) product offerings in the Nigerian market.

The CredPal Ride-on feature allows users to access Bolt services without immediate payment. To utilize this service, users must first sign up on the CredPal app and activate the specific option. Once enabled, they can choose CredPal as their payment method for Bolt rides and defer the payment until the end of the month or any other date that aligns with their financial convenience, such as their salary pay period. Crucially, CredPal is responsible for underwriting the cost of these trips, meaning users are not required to pay any portion of their fare upfront, unlike some traditional BNPL models.

Fehintolu Olaogun, CEO and Co-Founder of CredPal, emphasized the solution's potential to enhance financial management for various income earners across Nigeria. He stated, “I believe transportation is one of the daily essentials that a working Nigerian considers when planning a monthly budget, so what we’ve done with CredPal Ride-On is offer a choice of using credit that has been availed to them to better manage their monthly expenses.” Echoing this sentiment, Kwaku Ampadu-Manu, Bolt’s Country Sales Manager, highlighted Ride-On as a vital product that can accelerate the adoption of digital payments while offering Bolt riders a much-needed alternative payment option. He remarked, “This partnership gives riders access to a much-needed alternative that meets their mobility needs without immediately spending out of pocket, and we are happy to work with CredPal to foster our mission of making our cities for people and not cars.”

For Nigerians, this partnership signifies a significant advancement in accessing essential services. The emergence of BNPL companies has been a welcome development in the Nigerian startup scene over the past three years, enabling customers to acquire goods and services they might otherwise have to postpone. The CredPal Ride-on model extends this benefit to ride-hailing, allowing users to enjoy mobility services even when they are cashless, with the flexibility to pay at their convenience. This creates a win-win scenario by simultaneously driving revenue for ride-hailing companies and empowering consumers.

From the perspective of the partnering companies, this service offers clear benefits. CredPal stands to significantly boost the usage of its application as a primary payment option, expanding its user base and market penetration. For Bolt, the partnership is expected to attract increased patronage for its services, particularly from individuals who prefer or require deferred payment options, thereby enhancing customer loyalty and market share. Users are pre-qualified based on specific parameters, ensuring responsible credit provision, with repayment schedules structured to coincide with salary dates for ease of management.

While CredPal is likely the first third-party firm in Nigeria to offer a dedicated "ride now, pay later" option, the concept is not entirely novel globally. Examples include the Indian ride-hailing company Ola, which introduced a credit option in 2016 allowing users to book rides without upfront payment for up to seven days. Similarly, GoCatch, an Australian ride-sharing business, integrated Zip, a BNPL service, as a payment option, showcasing a growing global trend in flexible payment solutions for transportation.