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How to Make Money Using Buy Now Pay Later Deals
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How to Make Money Using Buy Now Pay Later Deals

EDITOR'S NOTE: This article is part of our Money254 Partner Series produced in partnership with Absa Bank Kenya for the launch of the new Absa Buy Now Pay Later service for Credit Card customers. Our partners may suggest topics they would like readers to know about but do not influence what/how we write about it.

In a world where financial flexibility meets entrepreneurial ingenuity, the concept of "Buy Now Pay Later" (BNPL) has emerged as a game-changer. This innovative payment method allows individuals to acquire what they need and desire today, with the promise of paying later. 

In Kenya, the number of BNPL services has been rapidly increasing. Today, you can buy virtually any product online and in major retailers, and you will have the option to choose BNPL at checkout. The payment scheme is known by different names including “Lipa Pole Pole” and “Lipa Mdogo Mdogo.”

BNPL allows users to buy on credit with partial or no immediate payment and spread the payment over a set period of time. This increased flexibility can allow for unparalleled convenience and the ability to accommodate big purchases in your budget. 

However, BNPL isn't just about convenient shopping; it's also a gateway to financial opportunities and creative ventures for savvy entrepreneurs. Recently Absa Bank introduced the option to convert credit card purchases to the BNPL service, and you can take advantage of this to build income-generating activities.

This article will explore how to make money using “the buy now, pay later” deals.

How Absa BNPL Credit Card Service Works

The Absa BNPL credit card service is a first-of-its-kind product from Absa Bank of Kenya that allows customers to convert their outstanding credit card balance to short-term credit. Its biggest benefits include the flexibility to split payments across up to 12 months and the opportunity to reduce significantly reduce your monthly interest rates. 

This service enables you to make big purchases conveniently as you can integrate repayments into your budget. For example, if you lost your laptop and don’t have emergency savings to buy a replacement, you can use your Absa Credit Card to purchase one. You will then log into the Absa mobile banking app/internet banking platform to convert that transaction into a BNPL and pick the instalment plan that works best for you.

Beyond personal benefits, the Absa Credit Card BNPL service accommodates entrepreneurs looking to start a new business to generate extra income or established businesses looking to expand. They can leverage the Absa Credit Card to purchase tools, equipment, and inventory and convert transactions to BNPL to extend repayments.

5 Ways to Make Money Using BNPL in Kenya

1. Buy a Money-Making Asset and Start a Business

As times get tough, many people are seeking new and sustainable ways to increase their income, improve financial security and long-term savings. 

One way to achieve this is to buy in income-generating assets and start a small business as a side hustle. These types of businesses can generate steady revenue and require little active participation, as you can typically delegate the management and focus on your nine-to-five job.

You can buy many such assets to start a business and generate income. Here are a few examples:

a). Washing machines and driers to start a laundromat 

b). Printers and computers to open a cyber cafe 

c). Car wash equipment to start a car wash business  

d). Grooming/hair styling equipment to start a barber shop/salon

e). Cameras and lighting equipment to start a photography studio

As you have rightly guessed, buying those assets requires upfront cash. To successfully set up any of the businesses listed above, you need Ksh100,000 to Ksh200,000. If you don't have enough savings and want to set up a shop, you might have to raise money by borrowing a business loan or using a credit card.

While business loans could be a better solution in this scenario, they typically come with a challenging qualification criterion, require collateral, and take a long time to process. All this typically locks out many borrowers. On the other hand, credit cards are relatively easy to access. Still, they offer short-term flexibility and come with high-interest rates that can quickly accumulate if you're not diligent with repayments. 

This is where the Absa BNPL credit card comes in. It allows you to buy types of equipment to start your business using your credit card and convert the balance into a BNPL scheme and repay it at your own speed. 

For example, let's say you want to open an estate laundromat and have an Absa Classic Credit Card with a Ksh200,000 limit. You could go to an outlet like Hotpoint and buy two washing machines with a drier, stock up on detergent,  buy laundry basins, etc., and spend Ksh150,000. 

You can then convert that Ksh150,000 into BNPL and slowly repay it for up to 12 months in installments with profits from your business. 

2. Buy and Resell High-Demand Items Online

Did you know you can make extra cash buying and reselling products online? 

Over the last few years, you must have noticed a lot of new online businesses leveraging social media platforms like Instagram and Facebook marketplace to sell products. Some of them don’t even have a physical business premise.

These businesses buy products from other retailers from local and international websites and resell them for a profit. If you’re looking for a great side hustle, flipping items this way for extra cash might be an ideal option. And you can do it while focusing on your day job.

To get started, you first need to decide on the type of products to sell. The best products are typically stuff people use daily, have stable demand, low competition, and good profit margins. Some of these products include musical instruments, rare kitchen utensils, photography gear, home exercise equipment, etc. Next, you need to set up social media pages where you will sell your products. 

Now, if you're considering diving into this venture and need some initial capital to purchase your first batch of products, one option to explore could be using a credit card. They can provide a quick and convenient way to access funds and are accepted by local retailers like Hotpoint and Jumia and international websites like Amazon and Alibaba.

If you use Absa Credit Card, you can shop for your initial product and convert your transactions to a BNPL model. This will allow you to lower your interest rate and set a repayment period, helping you pay off the debt within a defined timeline of up to 12 months.

3. Start a Personal Shopping Service 

In today's fast-paced world, the demand for personalised and convenient services is rising. This presents a unique opportunity for individuals looking to make extra cash by starting their own personal shopping service. People are increasingly seeking assistance to navigate the overwhelming options in the market, whether it's for fashion, home decor, gifts, or even groceries.

As a personal shopper, you'd provide a tailored shopping experience, understanding clients' preferences, budgets, and needs. To start, build a strong online presence through social media. Networking within your community and leveraging word-of-mouth can also help you find your initial clients.

Credit cards can be a valuable tool for optimising your personal shopping business. Banks like Absa have a variety of credit cards that offer cashback, discounts, or rewards on purchases. You can leverage these benefits to secure deals and discounts for your clients and shop in advance for your customers.

Additionally, since Absa allows you to convert credit card transactions to BNPL and slowly pay off your balance, you can start to offer layaway services for budget-conscious customers and even invest in discounted items to resell later at a profit. This strategy will allow you to establish a thriving personal shopping business while ensuring financial benefits for you and your clients.

4. Start an Airbnb Business 

As travelers, whether for business or tourism, increasingly seek unique and personalised experiences, there has been a rise in the demand for short-term rentals on platforms like Airbnb, with over 10,000 Kenyan listings.  If you have been thinking about venturing into this business but lack the capital to get started, an Absa Credit card could be handy. 

Starting a budget-friendly Airbnb in cities like Nairobi and Mombasa could require renting and furnishing a house, say a bedsitter. This can cost up to Ksh200,000. For a premium classy three-bedroom Airbnb, you could spend Ksh1,000,000 or more depending on the services you plan to offer your customers. 

The entry-level Absa Classic Credit Card with a Ksh200,000 limit can allow you to furnish a bedsitter comfortably. As mentioned above, this card allows you to enjoy the ability to ‘buy now, pay later,’ a feature that will enable you to make purchases using your credit cards and convert to an easy instalment plan of up to 12 months at reduced interest rates. 

5. Extend Your Product Line 

Line extension is a growth strategy businesses employ to introduce new items within an existing product category. It involves leveraging the appeal and recognition of their existing products to broaden their offerings and provide customers with more choices. 

This approach brings various benefits, including increased profits, enhanced customer loyalty, sustained relevance in a competitive market, and improved brand visibility.

For instance, consider an electronics business that specialises in selling phones. They could diversify into complementary products like woofers or headphones when extending their product line. Similarly, salon owners could invest in the necessary equipment and expand their services to include spa treatments. 

Such strategies often require additional funding, where a business loan is a common choice for entrepreneurs without other funding sources. However, using a credit card can offer a flexible financing option.

The Absa credit cards are a favourable choice for entrepreneurs seeking to extend their product lines. These cards offer the unique feature of converting balances to a BNPL service.  

This attribute allows businesses to manage cash flow while implementing their expansion strategies. They can seize growth opportunities and realise their vision for a diversified product line without going through the rigorous process of getting a business loan.


Leveraging a BNPL service to create an income source can be a strategic move, but it comes with potential benefits and risks that you should consider carefully.

On one hand, it can help you manage your cash flow by allowing you to spread out the payments over time, apply for an Absa credit card, spend from it, and convert the balance to a BNPL service is more flexible compared to other types of financing. Leveraging BNPL also allows you to allocate your available funds to other aspects of the business, such as marketing, maintenance, and hiring staff, potentially accelerating your business growth.

On the other hand, misuse of BNPL services could lead to accumulating debt if not appropriately managed, and the monthly repayments can strain your finances if your venture doesn't generate enough revenue. 

Before making any financial decisions, conduct thorough research and due diligence. To ensure that the income potential justifies the investment, take time to perform a risk assessment. 

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Tony Mukere is the branded content lead at Money254. He is a trained journalist with a passion for impactful storytelling. Before joining, he worked as an editor at, and as a reporter at Connect with Mukere on Twitter.

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