(L-R): Shehryar Ali, country manager for East Africa at MasterCard and Eric Muli, founder and CEO Lipa Later Group at the partnership signing in Nairobi.

MasterCard has partnered with Kenyan startup Lipa Later to accelerate the growth of Buy Now, Pay Later (BNPL) payment services across Africa.

The cooperation, according to MasterCard, aims to bridge the financial inclusion gap, benefiting the underbanked population and individuals with restricted access to financing while allowing merchants to improve their client base, grow sales, and provide more products and services.

According to MasterCard, the agreement would open up prospects for customers and merchants by providing customised BNPL solutions and better payment capabilities.

"This partnership opens up new avenues for consumers and merchants to access digital payment solutions that were previously unavailable to them," said Shehryar Ali, MasterCard's country manager for East Africa.

"Together with Lipa Later," he continued, "we're focused on providing seamless consumer experiences through Buy Now, Pay Later to promote inclusion to previously underserved communities and drive sustainable economic growth in Africa."

The BNPL solution, according to MasterCard, will enable flexible financing alternatives at checkout, providing an omni-channel experience both online and in-store. It will give customers easier access to financing, while merchants can boost their average basket size, appeal to a larger consumer base, and improve their ability to provide more products and services.

Eric Muli, founder and CEO, Lipa Later Group, said: "This collaboration will empower Africans, boost economic progress, and foster creativity. We are working together to effect positive change and shape the future of finance in Kenya and beyond."