Africa Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update

This title is a bundled offering combining 5 reports, covering regional insights along with data centric analysis at regional and country level:

Key Insights

Rapid Expansion of BNPL Services Across Africa

• BNPL services have seen significant growth in African markets, with notable developments in countries such as Kenya and Nigeria.
• In August 2023, Mastercard partnered with Lipa Later to expand BNPL solutions in Kenya, Rwanda, Uganda, and Nigeria, aiming to enhance financial inclusion. In May 2024, Jumia Nigeria launched BNPL partnerships with Easybuy and CredPal, allowing consumers to make purchases and spread payments over time.
• The increasing demand for flexible payment options among consumers. The need to enhance financial inclusion by providing credit access to underbanked populations. This trend is expected to continue over the next 2-4 years, with more partnerships and service expansions enhancing BNPL accessibility across the continent.

Integration of BNPL into E-commerce Platforms

• E-commerce platforms in Africa are increasingly incorporating BNPL options to attract more customers. In May 2024, Jumia Nigeria's partnerships with Easybuy and CredPal enabled BNPL options at checkout, enhancing the online shopping experience.
• The growth of online shopping in Africa. The desire to increase sales by offering flexible payment solutions. As e-commerce continues to grow, BNPL integration is likely to become a standard feature, further driving consumer adoption.

Emergence of BNPL in Non-Retail Sectors

• BNPL services are expanding into sectors beyond traditional retail, including technology and financial services. In August 2023, Mastercard's partnership with Lipa Later aimed to provide BNPL solutions across various sectors, enhancing financial inclusion.
• The need for flexible payment options in various sectors. The opportunity to reach a broader customer base by diversifying BNPL offerings. The diversification of BNPL services is expected to continue, providing consumers with more payment options across different sectors.

Anticipated Regulatory Developments

• While specific regulatory changes in Africa have yet to be widely reported, the overall growth of BNPL services is driven by increasing consumer demand for credit solutions, particularly among the unbanked population.
• The rapid expansion of BNPL services. The need to protect consumers and ensure responsible lending practices. As the BNPL market matures, regulatory frameworks are expected to evolve, potentially leading to more structured guidelines and oversight.

Competitive Landscape and Regulatory Developments in Africa's Buy Now Pay Later (BNPL) Market

Competitive Intensity in the BNPL Sector

• The African BNPL market is becoming increasingly competitive, with both regional and international players expanding their services. Providers are vying for strategic partnerships, technological innovation, and market reach across key regions such as Nigeria, Kenya, and South Africa.

Key Players and New Entrants:

• Lipa Later (Kenya, Uganda, Rwanda): Expanded its presence across multiple sectors, including healthcare and education financing.
• Payflex (South Africa): Strengthened its partnerships with major offline and e-commerce retailers.
• CredPal (Nigeria): Focused on digital integration for both online and offline retail ecosystems.
• New entrants have begun targeting niche areas such as education and SME financing, seeking to differentiate themselves through tailored services.

Recent Launches:

• Lipa Later launched sector-specific BNPL solutions in healthcare and education during 2024.
• In South Africa, Payflex introduced BNPL products aimed at small businesses to improve their access to flexible payment solutions.

Recent Partnerships, Mergers, and Acquisitions

• BNPL providers have been actively partnering with digital payment platforms and e-commerce players. For instance, Lipa Later expanded partnerships with e-commerce platforms and service providers to enhance their customer base.
• Retail integration continues to be a key focus, with providers aiming to offer consumers a seamless experience across both online and offline channels.
• Partnerships and strategic collaborations are expected to intensify competition by offering a broader range of services to consumers. Providers that leverage partnerships effectively will likely dominate key sectors and regions.

Regulatory Changes Implemented in 2024

• Regulators announced new oversight measures targeting digital credit providers, including BNPL services. The regulations are designed to increase transparency, protect consumers from predatory practices, and promote responsible lending.
• Authorities refined credit and financial regulations to ensure that fintech offerings, including BNPL, adhere to responsible lending practices. This includes stricter compliance requirements for BNPL providers operating under the National Credit Act.
• The Central Bank of Nigeria introduced stricter guidelines for digital lenders, including rules to protect consumers and limit excessive debt accumulation. These guidelines now extend to BNPL providers operating in the country.
• These regulatory developments aim to enhance trust in BNPL services and ensure financial stability. Providers are adapting their business models to comply with new rules, which may slow down market entry for new players but create a more stable competitive environment.

Outlook for the Next 2-4 Years

• Existing players will likely expand their geographic presence and diversify their product offerings to gain a competitive edge.Market consolidation through partnerships and acquisitions is anticipated as providers seek to scale operations and achieve economies of scale.
• Investments in technology, particularly AI for credit risk assessment and customer insights, are expected to improve personalization and service delivery.
• Regulatory frameworks will continue to evolve, focusing on protecting consumers while fostering fintech innovation. Compliance with local regulations will become critical for both market entry and sustainability, prompting providers to prioritize transparent practices and responsible lending.

Scope

BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Buy Now Pay Later Operational KPIs & Statistics

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel

• Online Channel
• POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Monthly Expense Segments

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in Africa: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in Africa. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.