The Buy Now Pay Later (BNPL) payments are projected to experience a significant annual growth rate of 22.3% and reach $9.2 billion by the year 2024, according to a report by Research and Markets.
The long-term outlook for the BNPL industry in the region remains robust, with a steady adoption expected over the forecast period. The market is expected to record a compound annual growth rate (CAGR) of 16.1% from 2024 to 2029.
Furthermore, the gross merchandise value of the BNPL sector in the region is predicted to surge from $7.5 billion in 2023 to a staggering $19.5 billion by 2029. The report provides comprehensive data-centric analysis of the Buy Now Pay Later (BNPL) industry, including market opportunities and risks across various retail categories.
With over 75 key performance indicators (KPIs) at the country level, this report presents a comprehensive understanding of BNPL market dynamics, size, forecasts, and share statistics.
The Middle East and Africa markets are expected to witness accelerated growth in the BNPL sector in the medium term, driven by increasing credit demand across different age groups.
In the Middle East, consumers are utilizing BNPL solutions for both luxury and essential purchases, a trend expected to continue into 2024, thus fueling industry growth.
Notable developments in the BNPL sector in Africa and the Middle East include significant product launches, partnerships, mergers, acquisitions, and regulatory changes, showcasing rapid growth and innovation in these regions over the past six months.
Nigerian BNPL startup CredPal, for instance, expanded its offerings, allowing customers to pay in 30 days with zero interest or spread payments over two to six months. Online and in-store shoppers can benefit from this flexibility, along with additional perks such as discounts and cashback.
Meanwhile, Ghana-based Motito launched its PayLater option to simplify consumer hire purchases, focusing on African startups and facilitating the acquisition of essential goods.
Lipa Later, operating in Kenya, Rwanda, Uganda, and Nigeria, secured $12 million in funding to expand its BNPL services. This investment aims to enhance the platform and expand the customer base across the region.
Similarly, Saudi BNPL company Tamara rapidly expanded its services, allowing consumers to purchase now and pay later at various retailers. The company has gained popularity among younger consumers in the region who seek flexible payment options.
Tabby, a key player in the UAE and Saudi Arabia, introduced new features that enable users to split payments into installments, catering to the growing demand for flexible payment solutions in the Middle East.
PayFort recently launched a BNPL service, providing merchants the ability to offer installment payment options directly on their platforms. This service aims to boost consumer purchasing power and drive sales for retailers in the region.
Key partnerships in the BNPL sector in Africa and the Middle East include CredPal’s collaboration with Visa to launch a BNPL service, enabling 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, with a goal to enhance the platform and reach more customers. Tabby secured a $50 million Series B funding round, valuing the company at $300 million.
Tabby’s investment will strengthen its position as the leading BNPL solution in the region, while Tamara raised $110 million in a Series A funding round led by Checkout.com, following a previous $6 million seed round.
Tamara, launched in 2020, has rapidly expanded its presence in the region. PayFort introduced a BNPL service, enabling merchants to offer installment payment options directly on their platforms, designed to enhance consumer purchasing power and drive sales for retailers in the Middle East.
Furthermore, the BNPL sector in Africa and the Middle East has witnessed notable mergers and acquisitions, with South African BNPL provider rapidly expanding and reaching one million users by August 2023 in the increasingly competitive landscape.
Although specific acquisitions are not specified, the company is poised for growth as a result of these developments.
