VIVO Brings Buy-Now-Pay-Later to Nigerians Through Credit Direct Partnership

Smartphone affordability remains one of the biggest barriers to digital access in Nigeria. As prices rise and income levels remain under pressure, more Nigerians are turning to flexible payment systems to bridge the gap. A new partnership between VIVO and Credit Direct Checkout is now addressing this challenge by offering a buy now, pay later (BNPL) option that makes premium devices more accessible to everyday consumers.

Flexible Smartphone Financing for Nigerian Consumers

Under the new initiative, customers can now purchase the VIVO Y21d smartphone by paying just 20% upfront, with the balance spread across one to six months. This marks a strategic shift in Nigeria’s BNPL market, as Credit Direct Checkout reduces its minimum downpayment threshold for the first time — moving from 30% to 20%.

The development signals an expansion in Nigeria’s consumer finance ecosystem, combining retail technology with structured credit to support affordability and financial inclusion.

Driving Digital Credit Growth in Nigeria

Nigeria’s credit penetration rate remains low, with less than 10% of adults having access to formal consumer credit. However, fintech innovations and retail financing partnerships are starting to transform this landscape.

The buy now, pay later (BNPL) model is one of the fastest-growing segments of the country’s fintech industry. According to McKinsey Africa’s Fintech Outlook, BNPL transactions in Nigeria are projected to increase by over 30% annually in the coming years, largely driven by smartphone purchases, home electronics, and lifestyle goods.

For Credit Direct, a subsidiary of First City Monument Bank (FCMB), the partnership with VIVO aligns with its mission to expand digital lending responsibly. By combining data-driven risk management with a user-friendly digital platform, the company aims to make consumer credit safer and more efficient.

How the Financing Model Works

The process is designed to be simple and fully digital. Customers can visit authorized retail outlets such as SLOT, POINTEK, FINET, or 3C HUB, or purchase online through verified vendors offering Credit Direct Checkout as a payment option.

After selecting a smartphone, buyers pay only 20% of the total price, while the remaining balance is repaid over flexible monthly installments without the need for collateral. For example, a VIVO Y21d priced at ₦199,800 can be acquired with an upfront payment of ₦39,960, while the remaining ₦159,840 is spread over an agreed repayment period.

Payments can be completed via secure digital links shared by retail partners or directly through checkout options on partner websites, making the process seamless for both in-store and online customers.

Empowering Retail and Supporting Digital Inclusion

This partnership benefits not only consumers but also retailers and manufacturers. By integrating BNPL into the sales process, merchants can increase conversions and attract more customers who may have otherwise delayed their purchases.

For VIVO, this move strengthens its foothold in Nigeria’s competitive smartphone market, while for Credit Direct, it reinforces its position as a trusted provider of ethical consumer lending solutions.

On a broader scale, the partnership supports Nigeria’s digital inclusion agenda. Affordable smartphone access enables more people to connect to digital services — from mobile banking and e-commerce to online education and remote work — fueling economic participation across all sectors.

The Broader Economic Impact

Access to affordable devices is a key driver of the country’s digital transformation. By reducing the financial barrier to smartphone ownership, the VIVO and Credit Direct Checkout model contributes to national goals of expanding digital literacy and financial inclusion.

Moreover, BNPL programs like this can help consumers build credit histories over time, integrating more Nigerians into the formal financial system. This shift from informal to structured lending has the potential to reshape the consumer credit market and stimulate broader economic growth.