Kenya: Equity Rolls Out Payment, Financing Options As Schools Reopen
Nairobi — Equity Bank has introduced payment and financing options for parents, students, merchants and suppliers as schools reopen for the new term.
The solutions cover school-fee payments, cashless purchases, short-term credit, merchant financing and working capital for businesses supplying school materials.
Speaking on Capital FM, Equity Bank Business Growth and Development Manager Peter Karuga said the measures are aimed at easing the financial pressure faced by families during the back-to-school period.
"As Equity Bank, we are offering to ensure that we alleviate and help to alleviate that pressure by offering convenience, affordability, and stress-free solutions," Karuga said.
Parents can pay school fees through Equity's mobile application, *247# USSD service, internet banking, branches and agents. Karuga said parents do not have to be Equity customers to make payments where schools have collection accounts with the bank.
The lender has also introduced a prepaid card that parents can load with money for students to use at school canteens, shopping centres and other participating outlets.
The PIN-enabled card is intended to reduce the need for students to carry cash, particularly during school trips and other activities.
For merchants, Equity is promoting its One Equity Till Number, which allows customers to make payments through M-Pesa, Airtel and bank accounts.
Karuga said the system also helps merchants reconcile payments while allowing customers to make cashless purchases using Visa and Mastercard cards at participating outlets.
Equity agents can also process school-fee payments, allowing parents to use outlets in shopping centres rather than travelling to a bank branch or school.
Short-term financing
The bank is offering short-term financing to customers facing cash-flow gaps when meeting school-related expenses.
Eligible customers can apply for loans through the *247# USSD platform without visiting a branch.
Karuga also highlighted Boostika, a facility that can cover a shortfall when a customer's account balance is insufficient to complete a purchase.
For example, a customer with Sh8,000 who needs to make a Sh10,000 purchase can use the facility to cover the Sh2,000 gap, subject to eligibility.
Businesses selling school supplies can access merchant financing to purchase stock from manufacturers and publishers and settle the cost later.
Equity is also offering Agent Float Financing to help agents maintain sufficient cash or electronic float to process school-fee payments during periods of increased demand.
Publishers and distributors can access financing against validated local purchase orders, allowing them to supply goods before receiving payment.
The bank said its financing solutions also target salaried customers, pensioners and farmers with eligible income streams.
The measures come as families prepare for school expenses covering fees, uniforms, books, stationery and other requirements, while merchants and suppliers stock up to meet increased demand.
Read the original article on Capital FM.