Crypto-fiat exchange, Bitmama, has announced a new feature, Buy Crypto Pay Later (BCPL), which allows users to collect loans without collateral from its platform to buy cryptos.
The platform is the first in Africa to be launching this product and it is doing so in partnership with its lending partners.
According to Bitmama, the loans can be accessed by all users of Bitmama including first-time users. Users can access a maximum of $50 for their first loan request. Also, the users’ creditworthiness with Bitmama is built over time as the user continues to repay their loan on time. A credit-worthy user will then have their limit increased. Users who do not payback on time have their limits lowered.
The BCPL loans cannot leave the platform until they are paid back and can only be used to purchase crypto on the platform. The user can only view their account performance. Also, a customer will be able to access their returns once their account is funded and principal plus interest is paid back.
Features of our BCPL Product
- Loan period: 30 days or more
- Interest rate: 15% per month
- Use: To buy BTC, ETH and CELO currently
- Repayment: Deducted from the wallet at the end of loan term inclusive of the interest
- Availability: Nigeria, Ghana, and Kenya
The company in a blog post said, “The buy crypto pay later feature reinforces our confidence in the crypto market and its potential, despite the current market cycle we are in. As a gateway to the crypto ecosystem, this is also a way we are driving adoption and financial inclusion by allowing anyone including those who are without cash or illiquid still purchase either BTC, ETH, or CELO and pay later. Users who secure loans can also use our suite of products including crypto cards, bill and airtime payment with crypto, send and receive crypto and fiat from around the world among others.”
