Dashen Bank in collaboration with EagleLion System Technology is going to launch a credit scheme banking service that allows businesses to provide their products and services on credit bases for customers.
The service would be available via a mobile application dubbed, Dube Pay.
The application is said to create more marketing opportunities for merchants, manufacturers, and service providers. It is also claimed that it will replace the traditional credit service with a modern one.
“The service will allow buyers to obtain what they want irrespective of their temporary financial constraints and enable them to pay back their costs in an extended period of time via a technology-assisted system,” said the bank in its statement.
The technology Dube Pay is designed to follow the “Buy Now Pay Later” principle to serve as a guarantee between Dashen Bank’s customers, merchants, beneficiaries, or institutions that trade in banks or financial institutions.
The bank asserts that Dube Pay is a world-class and highly secure smartphone application.
In order to use this application customers of the bank need to download the app on their mobile phones. And they will have to bring a letter from the institutions they work for stating the amount of their salary to any branch of the bank and register.
Dube Pay will be open to businesses, and service providers and customers can use the app to transact up to the credit limit set out by the bank.
The application will be available in four indigenous languages: Amharic, Afaan Oromo, Tigrinya, and Somali, as well as English. The bank stated that there would also be different technological projects that the bank will partner with, individually and in collaboration with, other institutions in the new service.
Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them at a future date, often interest-free. Also referred to as "point of sale installment loans," BNPL arrangements are becoming an increasingly popular payment option, especially in electronic payment systems.
Dashen Bank is the first private bank established back in 1995. It is a pioneer in introducing electronic payment cards.
The bank’s technology partner in the new service, EagleLion System Technology, is a technology company reputed for developing groundbreaking systems and applications such as Cashgo, Guzogo, Itismydam (a crowdfunding app for GERD), Getfee, and Getrooms.