The loans will provide merchants with funds to grow their business through supplemental stock, infrastructure investment, and other key operational needs. Loans will be disbursed directly to the merchants’ phones.
“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“, said Visa General Manager for East Africa, Sunny Walia. “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 among the small merchant segments that are often unable to access quick loans,” he added.
Through this partnership, Visa and Branch aim to significantly reduce the cost of cash for these merchants. The eligible merchants will be able to access loans of up to KSh30,000 ($300) which can be repaid within 6 months.
“Visa revolutionized the payments technology space and popularized the idea of the credit card to the world,” said Branch CEO Matthew Flannery. “At Branch, we think mobile financial apps are the ‘cards’ of the future. It only makes sense to be working together to bring world-class financial services to merchants here in Kenya and beyond.”
Branch is a machine learning-powered provider of mobile financial products across Africa and Latin America. Recently, the mobile loans company raised Sh350m to expand its loan product offerings in Kenya. The commercial paper issuance was arranged by Centum-owned capital-raising advisory firm, Barium Capital, marking the second time the San Francisco headquartered technology company has issued commercial paper in the Kenyan market.