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Africa & Middle East 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 - Q2 2024 Update

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    Report

  • 783 Pages
  • August 2024
  • Region: Africa, Middle East
  • PayNXT360
  • ID: 5305019
UP TO OFF until Oct 31st 2024
The BNPL payments in the region are expected to grow by 22.3% on an annual basis to reach US$9.2 billion in 2024.

The medium to long-term growth story of the BNPL industry in the region remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 16.1% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$7.5 billion in 2023 to reach US$19.5 billion by 2029.The buy now pay later market is poised to grow at an accelerated pace in the Middle East and Africa markets over the medium term. The growth will be driven by the rising credit demand among consumers across age groups. In the Middle East, for instance, consumers are using the payment solution for luxury as well as essentials-related purchases. This trend is projected to continue in 2024, aiding the broader industry growth.

Recent Developments in the Buy Now, Pay Later (BNPL) Sector in Africa and the Middle East

Over the past six months, the BNPL sector in Africa and the Middle East has experienced notable product launches, partnerships, mergers, acquisitions, and regulatory changes, reflecting rapid growth and innovation in these regions. Below are key highlights:

Africa

1. CredPal: This Nigerian BNPL startup has expanded its offerings, allowing customers to pay in 30 days with 0% interest or spread payments over 2 to 6 months. This flexibility is available to both online and in-store shoppers, and additional benefits such as discounts and cashback are also available.
2. Motito: Based in Ghana, Motito launched its "PayLater" option, focusing on simplifying consumer hire purchases. This service is aimed at African startups and makes it easier to purchase essential goods.
3. Lipa Later: In Kenya, Rwanda, Uganda, and Nigeria, Lipa Later raised $12 million to expand its BNPL services. This funding will help improve its platform and increase its regional customer base.

Middle East

1. Tamara: This Saudi BNPL company has quickly expanded its services, allowing consumers to purchase and pay later at various retailers. The company is gaining popularity in the region, particularly among younger consumers seeking flexible payment options.
2. Tabby: A key player in the UAE and Saudi Arabia, Tabby has introduced new features that allow users to split payments into installments. This service is becoming increasingly popular as demand for flexible payment solutions grows in the Middle East.
3. PayFort: PayFort recently launched a BNPL service enabling merchants to offer installment payment options directly on their platforms. This service aims to enhance consumer purchasing power and boost sales for retailers in the region.

These product launches indicate strong growth in the BNPL sector in Africa and the Middle East, driven by increasing consumer demand for flexible payment solutions and the integration of innovative financial technologies.

Key Partnerships in the BNPL Sector in Africa and the Middle East

Africa

1. CredPal & Visa: CredPal, a Nigerian BNPL startup, partnered with Visa to launch a BNPL service allowing customers to make purchases and pay in installments at participating merchants across Africa.
2. Lipa Later: Lipa Later raised $12 million to expand its BNPL services across Kenya, Rwanda, Uganda, and Nigeria, aiming to enhance its platform and reach more customers.

Middle East

1. Tabby: Tabby, a leading BNPL provider in the UAE and Saudi Arabia, secured a $50 million Series B funding round, valuing the company at $300 million. This investment will help Tabby strengthen its position as the top BNPL solution in the region.
2. Tamara: The Saudi BNPL firm Tamara raised $110 million in a Series A funding round led by Checkout.com, following a previous $6 million seed round. Launched in 2020, Tamara has rapidly expanded its presence in the region.
3. PayFort: PayFort introduced a BNPL service that enables merchants to offer installment payment options directly on their platforms. This service is designed to enhance consumer purchasing power and drive sales for retailers in the Middle East.

These partnerships and funding rounds highlight the growing demand for BNPL services in Africa and the Middle East and the increasing competition among providers to expand their reach and offerings in these regions.

Mergers and Acquisitions in the BNPL Sector in Africa and the Middle East

Africa

1. PayJustNow: This South African BNPL provider has rapidly expanded and reached 1 million users by August 2023. Although specific acquisitions are not detailed, the company is positioned for growth in the increasingly competitive BNPL landscape.
2. Lipa Later: While not a merger or acquisition, Lipa Later's significant funding round underscores its strategic move to strengthen its market position across multiple African countries.

Middle East

1. Tamara: The Saudi BNPL firm Tamara raised $110 million in a Series A funding round led by Checkout.com. The round aimed at expanding its operations and enhancing its service offerings, potentially paving the way for future acquisitions.
2. Tabby: Tabby secured substantial funding to solidify its position in the BNPL market in the UAE and Saudi Arabia. Although no specific acquisitions are mentioned, this capital influx suggests potential for future strategic partnerships or acquisitions.
3. Saudi Central Bank Regulations: The Saudi Central Bank's recent regulatory framework, which sets clear licensing requirements and operational guidelines for BNPL companies, may facilitate mergers and acquisitions in the sector.

These developments indicate a dynamic environment in the BNPL sector, with companies positioning themselves for growth through strategic funding and potential future mergers and acquisitions as the market evolves.

Regulatory Developments in the BNPL Sector in Africa and the Middle East

Middle East

1. United Arab Emirates:
  • In December 2023, the UAE Central Bank introduced new regulations for BNPL services. These regulations require businesses offering BNPL to operate as agents of licensed banks or financial institutions and obtain approval from the central bank.
  • Fintech companies can provide short-term credit services after acquiring a restricted license. Unlicensed entities must either apply for a license or collaborate with licensed banks to continue operations. Short-term credit is loans for up to 12 months for purchasing goods or services without interest or collateral.
2. Saudi Arabia:
  • The Saudi Central Bank introduced new BNPL regulations in December 2023, including licensing requirements and measures to enhance information security, internal policies, and consumer protection. These regulations aim to define credit limits and ensure sustainable growth in the BNPL market over the medium term.

Africa

  • Although 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. As the market matures, regulatory frameworks are expected to evolve, but specific government policies or regulations have yet to be detailed in recent reports.
These regulatory actions in the Middle East reflect a proactive approach to managing the rapidly growing BNPL sector, focusing on consumer protection and establishing a structured financial environment. As the market expands, further regulatory developments will likely emerge in both regions.

The BNPL payment industry in Africa & Middle East has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This title is a bundled offering, combining 8 reports (464 tables and 600 charts).

Country reports in this bundled offering provide in-depth analysis of Buy Now Pay Later industry. Below is a summary of key market segments offered at country level:

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in through 55 tables and 71 charts. Below is a summary of key market segments:

BNPL Market Size and Spending Pattern, 2020-2029

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

Buy Now Pay Later Revenue Analysis, 2020-2029

  • 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, 2020-2029

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

BNPL by Purpose, 2020-2029

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

BNPL by Business Model, 2020-2029

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

BNPL by Merchant Ecosystem, 2020-2029

  • Open Loop System
  • Closed Loop System

BNPL by Distribution Model Analysis, 2020-2029

  • Standalone
  • Banks & Payment Service Providers
  • Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel, 2020-2029

  • Online Channel
  • POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

  • 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, 2020-2029

  • 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, 2020-2029

  • 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, 2020-2029

  • 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, 2020-2029

  • 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, 2020-2029

  • 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, 2020-2029

  • 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
  • Average Monthly Expense segments

Reasons to buy

  • Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
  • Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
  • Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
  • Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
  • Create profitable and proactive business plans by utilising market research and a forward-looking study of Africa & Middle East BNPL market spend and significant prospects.

Table of Contents

This title is a bundled offering, combining the following 9 reports, covering 464 tables and 600 figures:
1. Africa & Middle East Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
2. Egypt Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
3. Israel Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
4. Kenya Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
5. Nigeria Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
6. Saudi Arabia Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
7. South Africa Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
8. United Arab Emirates Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
All global, regional, and country reports mentioned above will have the following tables of contents:
1 About this Report
1.1 Summary
1.2 Methodology
1.3 BNPL Definitions
1.4 Disclaimer
2 Buy Now Pay Later Industry Attractiveness
2.1 Buy Now Pay Later - Gross Merchandise Value Trend Analysis, 2020-2029
2.2 Buy Now Pay Later - Average Value Per Transaction Trend Analysis, 2020-2029
2.3 Buy Now Pay Later - Transaction Volume Trend Analysis, 2020-2029
3 Buy Now Pay Later Operational KPIs
3.1 Buy Now Pay Later Revenues, 2020-2029
3.2 Buy Now Pay Later Share by Revenue Segments, 2020-2029
3.2.1 Buy Now Pay Later Revenue by Merchant Commission, 2020-2029
3.2.2 Buy Now Pay Later Revenue by Missed Payment Fee Revenue, 2020-2029
3.2.3 Buy Now Pay Later Revenue by Pay Now & Other Income, 2020-2029
3.3 Buy Now Pay Later Active Consumer Base, 2020-2029
3.4 Buy Now Pay Later Bad Debt, 2020 - 2024 - 2029
4 Buy Now Pay Later Spend Analysis by Business Model, 2020-2029
4.1 Buy Now Pay Later Two-Party Business Model, 2020-2029
4.2 Buy Now Pay Later Three-Party Business Model, 2020-2029
5 Buy Now Pay Later Spend Analysis by Purpose, 2020-2029
5.1 Buy Now Pay Later Convenience, 2020-2029
5.2 Buy Now Pay Later Credit, 2020-2029
6 Buy Now Pay Later Spend Analysis by Functional Attribute, 2020-2029
6.1 Buy Now Pay Later by Open Loop System, 2020-2029
6.2 Buy Now Pay Later by Closed Loop System, 2020-2029
7 Buy Now Pay Later Spend Analysis by Distribution Model, 2020-2029
7.1 Buy Now Pay Later by Standalone, 2020-2029
7.2 Buy Now Pay Later by Banks & Payment Service Providers, 2020-2029
7.3 Buy Now Pay Later by Marketplaces, 2020-2029
8 Buy Now Pay Later Spend Analysis by Sales Channel
8.1 Buy Now Pay Later Market Share by Sales Channel, 2020-2029
8.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2020-2029
8.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2020-2029
9 Buy Now Pay Later Snapshot by End-Use Sector, 2020-2029
9.1 Buy Now Pay Later Market Share by End-Use Sector, 2023
9.2 Buy Now Pay Later Sales Uplift by End-Use Segment, 2023
10 Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029
10.1 Buy Now Pay Later Retail Shopping - Gross Merchandise Value Trend Analysis, 2020-2029
10.2 Buy Now Pay Later Retail Shopping - Average Value Per Transaction Trend Analysis, 2020-2029
10.3 Buy Now Pay Later Retail Shopping - Transaction Volume Trend Analysis, 2020-2029
11 Buy Now Pay Later Market Size and Forecast by Retail Product Categories
11.1 Buy Now Pay Later Share by Retail Product Category, 2023
11.2 Buy Now Pay Later Retail Shopping - Apparel, Footwear & Accessories - Gross Merchandise Value Trend Analysis, 2020-2029
11.3 Buy Now Pay Later Retail Shopping - Consumer Electronics - Gross Merchandise Value Trend Analysis, 2020-2029
11.5 Buy Now Pay Later Retail Shopping - Toys, Kids, and Babies - Gross Merchandise Value Trend Analysis, 2020-2029
11.6 Buy Now Pay Later Retail Shopping - Jewellery - Gross Merchandise Value Trend Analysis, 2020-2029
11.7 Buy Now Pay Later Retail Shopping - Sporting Goods - Gross Merchandise Value Trend Analysis, 2020-2029
11.8 Buy Now Pay Later Retail Shopping - Entertainment & Gaming - Gross Merchandise Value Trend Analysis, 2020-2029
11.9 Buy Now Pay Later Retail Shopping - Others - Gross Merchandise Value Trend Analysis, 2020-2029
12 Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029
12.1 Buy Now Pay Later Home Improvement - Gross Merchandise Value Trend Analysis, 2020-2029
12.2 Buy Now Pay Later Home Improvement - Average Value Per Transaction Trend Analysis, 2020-2029
12.3 Buy Now Pay Later Home Improvement - Transaction Volume Trend Analysis, 2020-2029
13 Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029
13.1 Buy Now Pay Later Travel - Gross Merchandise Value Trend Analysis, 2020-2029
13.2 Buy Now Pay Later Travel - Average Value Per Transaction Trend Analysis, 2020-2029
13.3 Buy Now Pay Later Travel - Transaction Volume Trend Analysis, 2020-2029
14 Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029
14.1 Buy Now Pay Later Media and Entertainment - Gross Merchandise Value Trend Analysis, 2020-2029
14.2 Buy Now Pay Later Media and Entertainment - Average Value Per Transaction Trend Analysis, 2020-2029
14.3 Buy Now Pay Later Media and Entertainment - Transaction Volume Trend Analysis, 2020-2029
15 Buy Now Pay Later in Service: Market Size and Forecast, 2020-2029
15.1 Buy Now Pay Later Service - Gross Merchandise Value Trend Analysis, 2020-2029
15.2 Buy Now Pay Later Service - Average Value Per Transaction Trend Analysis, 2020-2029
15.3 Buy Now Pay Later Service - Transaction Volume Trend Analysis, 2020-2029
16 Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029
16.1 Buy Now Pay Later Automotive - Gross Merchandise Value Trend Analysis, 2020-2029
16.2 Buy Now Pay Later Automotive - Average Value Per Transaction Trend Analysis, 2020-2029
16.3 Buy Now Pay Later Automotive - Transaction Volume Trend Analysis, 2020-2029
17 Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029
17.1 Buy Now Pay Later Healthcare and Wellness - Gross Merchandise Value Trend Analysis, 2020-2029
17.2 Buy Now Pay Later Healthcare and Wellness - Average Value Per Transaction Trend Analysis, 2020-2029
17.3 Buy Now Pay Later Healthcare and Wellness - Transaction Volume Trend Analysis, 2020-2029
18 Buy Now Pay Later in Others: Market Size and Forecast, 2020-2029
18.1 Buy Now Pay Later Others - Gross Merchandise Value Trend Analysis, 2020-2029
18.2 Buy Now Pay Later Others - Average Value Per Transaction Trend Analysis, 2020-2029
18.3 Buy Now Pay Later Others - Transaction Volume Trend Analysis, 2020-2029
19 Buy Now Pay Later Analysis by Consumer Attitude and Behaviour, 2020-2029
19.1 Buy Now Pay Later Spend Share by Age Group, 2023
19.1.1 Buy Now Pay Later by Age Group - Gen Z (15-27) - Gross Merchandise Value Trend Analysis, 2020-2029
19.1.2 Buy Now Pay Later by Age Group - Millennials (28-44) - Gross Merchandise Value Trend Analysis, 2020-2029
19.1.3 Buy Now Pay Later by Age Group - Gen X (45 - 60) - Gross Merchandise Value Trend Analysis, 2020-2029
19.1.4 Buy Now Pay Later by Age Group - Baby Boomers (60+) - Gross Merchandise Value Trend Analysis, 2020-2029
19.2 Buy Now Pay Later Spend Share by Default Rate by Age Group, 2023
19.3 Buy Now Pay Later Share by Income, 2023
19.3.1 Buy Now Pay Later by Income Level - Tier 1 - Gross Merchandise Value Trend Analysis, 2020-2029
19.3.2 Buy Now Pay Later by Income Level - Tier 2 - Gross Merchandise Value Trend Analysis, 2020-2029
19.3.3 Buy Now Pay Later by Income Level - Tier 3 - Gross Merchandise Value Trend Analysis, 2020-2029
19.4 Buy Now Pay Later Gross Merchandise Value Share by Gender, 2023
19.5 Buy Now Pay Later Adoption Rationale, 2023
19.6 Buy Now Pay Later Market - Spend by Average Monthly Expense Segments, 2023
20 Further Reading
20.1 About the Publisher
20.2 Related Research

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