# PAMP Credit PAMP Credit is the digital lending subsidiary within the Fintech Division, providing credit products to merchants and consumers across the PAMP ecosystem. Unlike traditional lenders that rely on credit bureau data (often unavailable in African markets), PAMP Credit uses **platform transaction data** from PAMP Marketplace, PAMP Pay, and PAMP Wallet to build alternative credit scores. This data-driven approach enables lending to underserved populations who lack formal credit histories but have demonstrable economic activity within the ecosystem. The platform offers merchant cash advances (revenue-based financing), consumer micro-loans, and buy-now-pay-later (BNPL) products — all integrated directly into the PAMP checkout and merchant dashboard experience. ## Business Model PAMP Credit operates a **net interest margin + origination fee model**: - **Interest Income**: 2–5% monthly interest on outstanding loan balances (24–60% APR, competitive for African micro-lending) - **Origination Fees**: 1–3% flat fee on loan disbursement - **Merchant Cash Advance Revenue Share**: Fixed percentage of daily sales until advance is repaid (factor rate 1.1–1.3x) - **BNPL Merchant Fees**: 3–5% charged to merchants for BNPL transactions (consumer pays no interest if repaid on time) - **Late Payment Fees**: Flat fee for missed installments (capped per regulatory requirements) - **Data Licensing**: Anonymized credit scoring models licensed to partner financial institutions Transaction History"] PAY["PAMP Pay
Payment Volume"] WAL["Wallet
Balance & Activity"] FACE["Face Recognition
Identity Verification"] end subgraph "PAMP Credit Engine" SCORE["Alternative
Credit Scoring"] RISK["Risk Assessment
& Pricing"] APPROVE["Automated
Approval"] DISBURSE["Loan
Disbursement"] end subgraph "Credit Products" MCA["Merchant Cash
Advance"] MICRO["Consumer
Micro-Loan"] BNPL["Buy Now
Pay Later"] WCF["Working Capital
Facility"] end subgraph "Repayment" AUTO["Auto-Deduct
from Sales"] WALLET_PAY["Wallet
Deduction"] MANUAL["Manual
Repayment"] end MKT --> SCORE PAY --> SCORE WAL --> SCORE FACE --> SCORE SCORE --> RISK RISK --> APPROVE APPROVE --> DISBURSE DISBURSE --> MCA DISBURSE --> MICRO DISBURSE --> BNPL DISBURSE --> WCF MCA --> AUTO MICRO --> WALLET_PAY BNPL --> WALLET_PAY WCF --> AUTO style SCORE fill:#ef4444,stroke:#dc2626,color:#fff style APPROVE fill:#10b981,stroke:#059669,color:#fff style DISBURSE fill:#3b82f6,stroke:#2563eb,color:#fff `} /> ## Total Addressable Market (TAM) ## Pricing Structure ## Operating Model - **Alternative Credit Scoring**: Proprietary scoring model using ecosystem data — transaction volume, frequency, average order value, wallet balance history, payment punctuality, and merchant ratings - **Automated Underwriting**: Real-time loan decisions for pre-qualified borrowers (sub-60-second approval for micro-loans) - **Disbursement**: Instant disbursement to PAMP Wallet; bank transfer option for larger amounts - **Collections**: Automated repayment via sales deduction (merchants) or wallet deduction (consumers); escalation to manual collections for delinquent accounts - **Risk Management**: Portfolio-level risk monitoring, concentration limits per merchant/sector, dynamic credit limit adjustments based on repayment behavior - **Capital Structure**: Initial lending capital from PAMP Group balance sheet; transition to securitization and institutional funding partnerships at scale ### Credit Scoring Using Platform Data (6-month history)"] FREQ["Transaction Frequency
(Daily/Weekly patterns)"] AOV["Average Order Value
(Trend analysis)"] WAL_H["Wallet Balance
(Stability score)"] PAY_H["Payment History
(On-time rate)"] RATING["Merchant Rating
(Customer feedback)"] end subgraph "Scoring Engine" ML["ML Model
(Gradient Boosting)"] RULES["Business Rules
(Min thresholds)"] SCORE_OUT["Credit Score
(300–850)"] end subgraph "Decision" APPROVE_D["Auto-Approve
(Score > 650)"] REVIEW["Manual Review
(Score 500–650)"] DECLINE["Auto-Decline
(Score < 500)"] end TX --> ML FREQ --> ML AOV --> ML WAL_H --> ML PAY_H --> ML RATING --> ML ML --> RULES RULES --> SCORE_OUT SCORE_OUT --> APPROVE_D SCORE_OUT --> REVIEW SCORE_OUT --> DECLINE style ML fill:#8b5cf6,stroke:#7c3aed,color:#fff style APPROVE_D fill:#10b981,stroke:#059669,color:#fff style DECLINE fill:#ef4444,stroke:#dc2626,color:#fff `} /> ## Regulatory Notes | Market | Regulatory Body | Key Requirements | |--------|----------------|------------------| | South Africa | NCR, FSCA | National Credit Act (NCA) registration, affordability assessments, interest rate caps, reckless lending provisions | | Nigeria | CBN, FCCPC | Digital lending guidelines (2022), interest rate disclosure, data privacy (NDPR), no predatory lending | | Kenya | CBK, DLA | Digital Lenders Act (2023), CBK licensing, interest rate caps, borrower protection regulations | | Morocco | BAM | Micro-credit institution license (Law 18-97), BAM supervision, interest rate regulations | | DRC | BCC | Micro-finance institution authorization, limited digital lending framework | | Senegal | BCEAO | WAEMU micro-finance regulations, BCEAO authorization for lending activities | | Ghana | BoG | Non-Bank Financial Institution (NBFI) license, Borrowers and Lenders Act compliance | **Responsible Lending**: PAMP Credit implements affordability checks, cooling-off periods, and transparent APR disclosure in compliance with each market's consumer protection regulations. Maximum debt-to-income ratios are enforced to prevent over-indebtedness. ## SWOT Analysis ## Competitive Positioning ## KPI Dashboard