Credit Direct, one of Nigeria’s leading embedded finance companies, has entered into a partnership with Chinese technology firm, vivo to expand access to smartphones through instalment-based financing.

The agreement is designed to address the high upfront cost of smartphones. Under the terms of the partnership, customers will be able to acquire a vivo smartphone by paying 20 per cent upfront, with the remaining balance spread over six months.

Credit Direct will provide the financing, effectively removing the need for full payment at the point of purchase.

The model reflects a growing trend in emerging markets, where embedded finance is increasingly used to unlock access to essential consumer goods, particularly digital devices that underpin participation in the modern economy.

By aligning repayments with monthly income cycles, the structure is intended to make smartphone ownership more attainable without placing undue strain on household finances.

Leveraging retail reach and financing infrastructure

The partnership also combines vivo’s extensive distribution footprint with Credit Direct’s lending infrastructure.

Customers will gain access to vivo’s network of more than 600 retail outlets across 25 states, providing both scale and geographic reach.

In its first year, the collaboration is targeting sales of more than 200,000 devices, an ambitious benchmark that reflects both the scale of unmet demand and confidence in the financing model.

For Credit Direct, the agreement marks its first formal collaboration with vivo Nigeria and represents a direct extension of its broader strategy to deepen financial inclusion.

Bridging the digital divide

Chukwuma Nwanze, Managing Director and Chief Executive of Credit Direct, said the partnership is rooted in addressing structural inequalities in access to technology.

“Nigeria has millions of smartphone users, but the gap between those who are connected and those who are not remains wide, and the primary reason for that gap is access to capital,” he said.

“This partnership addresses that directly. vivo has built a strong mobile product over the years, and Credit Direct has been providing financing to people who have been shut out of the formal financial system for years. What this partnership does is bring those two realities together.”

He added that enabling consumers to spread payments over time would allow more Nigerians to own smartphones without disrupting their financial stability.

“Our mission has always been to make financial solutions a universal opportunity, and this is exactly what that looks like in practice,” Nwanze said.

Strategic alignment and market confidence

For vivo Nigeria, the partnership represents a renewed push into instalment-based device sales, backed by a financing partner with established local expertise.

Toni Liu, Chief Executive of vivo Nigeria, said the company’s decision to work with Credit Direct was driven by confidence in its operational capabilities and market position.

“We chose Credit Direct because they are the clear leaders in consumer financing in Nigeria, and they operate with a level of professionalism that gave us confidence,” Liu said.

“Instalment-based device purchasing was something we had explored before, but it did not come together at the time. With Credit Direct’s backing and infrastructure, we are confident this will be different. This is a partnership we believe in.”

A broader shift in Nigeria’s digital economy

The partnership underscores a wider shift in Nigeria’s consumer and technology landscape, where access to financing is becoming as critical as access to products themselves.

As smartphones increasingly serve as gateways to financial services, education, and employment opportunities, expanding device ownership is seen as a key lever for economic participation.

If successful, the Credit Direct–vivo model could provide a blueprint for similar collaborations across the sector, linking device manufacturers with financial institutions to accelerate digital inclusion at scale.

For now, the initiative represents a targeted attempt to close one of the most persistent gaps in Nigeria’s digital economy: turning access to technology from a privilege into a practical reality.

Talking Points

It is notable that Credit Direct is applying embedded finance to a highly practical problem, the upfront cost of smartphones which remains one of the biggest barriers to digital access in Nigeria.

This pay-later model immediately lowers the entry threshold for device ownership, positioning the partnership as a real solution for low- and middle-income consumers who are locked out of the digital economy.

At Techparley, we see this as part of a broader shift where financing is becoming just as important as the product itself in driving adoption, particularly in emerging markets.

The combination of Credit Direct’s lending infrastructure and vivo’s extensive retail footprint creates a distribution and access model that is both scalable and grounded in local realities.

However, success will depend on execution. Key factors such as repayment flexibility, customer education, and trust in the financing process will determine how widely this model is adopted.

There is also an opportunity to go further. Expanding tenure options, integrating with digital services, or partnering with telcos and fintech platforms could significantly deepen impact and reach.

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