Digital credit or digital money is any means of payment that exists purely in electronic form. Digital money is not tangible like a Kenyan note or a coin. Digital credit is usually exchanged using smartphones, credit cards and even the internet and can be converted into physical money by, for example, withdrawing cash at an ATM or even visiting an “agent” where you carry out a transaction and he/she gives you the money.
Digital credit borrowing, in this case, means that people borrow this money which is in electronic form using their phones or computers to run their errands. One of the pioneers of digital credit in Kenya is Mshwari but other entrants are catching up fast. According to recent research on digital credit in Kenya; 65% of the people involved in the survey have never used digital credit, 19% of them are currently borrowing digital credit while 16% of them used digital credit in the past.
At least 35% of Kenyans who own phones have tried at least one digital lender and I not being a big enthusiast of borrowing digital credit must admit that I once borrowed digital credit from Branch to be precise to help out a friend…haha.Many Kenyans are also borrowing digital credit from other entrants like KCB Mpesa, Tala, Branch and many more digital credit loan providers.
There are many reasons why many Kenyans are borrowing the digital credit in Kenya and here they are.
Here are the reasons for borrowing digital credit by age.
and here are the reasons for borrowing digital credit according to gender in Kenya