The Buy Now Pay Later, BNPL, payments are expected to grow by 22.3 per cent on an annual basis to reach $9.2 billion in 2024.
This is according to a report by Research and Markets. 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 per cent during 2024-2029. The BNPL gross merchandise value in the region will increase from $7.5 billion in 2023 to reach $19.
5 billion by 2029. The 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.
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 BNPL sector in Africa and the Middle East show that 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. In Nigerian, CredPal, a BNPL startup has expanded its offerings, allowing customers to pay in 30 days with zero per cent interest or spread payments over two to six months.
This flexibility is avail – able to both online and in-store shoppers, and additional benefits such as discounts and cashback are also available. Motito, based in Ghana, 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.
Lipa Later, which is in Kenya, Rwanda, Uganda, and Nigeria, raised $12 million to expand its BNPL services. This funding will help improve its platform and increase its regional customer base. Similarly, Tamara, the 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. Tabby, a key player in the UAE and Saudi Arabia, 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.
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. Key Partnerships in the BNPL Sector in Africa and the Middle East CredPal, another 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.
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. Tabby also 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 just as 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. 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. Also on record is the fact that Mergers and Acquisitions in the BNPL sector in Africa and the Middle East had seen South African BNPL provider rapidly expanding and reaching one million users by August 2023. Although specific acquisitions are not detailed, the company is positioned for growth in the increasingly competitive BNPL landscape.
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