Africa & Middle East Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

Africa & Middle East Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

Report Description

BNPL payment industry in Africa & Middle East has recorded strong growth over the last four quarters, supported by increased ecommerce penetration along with impact of economic slowdown due to disruption caused by Covid-19 outbreak.

According to PayNXT360’s Q4 2021 BNPL Survey, BNPL payment industry in the region is expected to grow by 99.8% on annual basis to reach US$ 7187.8 million in 2022.

Medium to long term growth story of BNPL industry in Africa & Middle East remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 49.2% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 3598.0 million in 2021 to reach US$ 79398.1 million by 2028.

The adoption of the buy now, pay later (BNPL) products and services has been on a constant rise in the Africa & Middle East region over the last four to eight quarters. Several startups and global BNPL players are offering their innovative products and deferred payment services for consumers in the region. Moreover, the adoption from merchants is also on the rise as more and more consumers are demanding the BNPL payment method for both in-store as well as online purchases.

Strategic partnership to launch innovative BNPL solution in the UAE

In the UAE, the global pandemic has resulted in a shift in consumer spending habits and accelerated adoption of online shopping platforms. This shift in the overall consumer behavior, along with the rise of digital payment solutions, is resulting in BNPL becoming one of the fastest-growing payments methods in the country. Moreover, as the digital payments landscape continues to evolve in the UAE, BNPL firms along with global payment giants are launching innovative, first-of-its-kind shop anywhere BNPL schemes. For instance,

• In November 2021, Postpay, one of the leading BNPL platforms in UAE, entered into a strategic collaboration with the Commercial Bank of Dubai and Mastercard. The firm has partnered strategically to launch the region's first-of-its-kind shop anywhere BNPL scheme, with the aim to drive digital payments growth in the UAE.
• The shop anywhere BNPL scheme allows consumers to purchase online or in-store at thousands of physical stores, such as Decathlon, GAP, Level Shoes, Ace, Apple, Azadea, H&M, Home Center, Mumzworld, Sephora, Sharaf DG, Shein, and Zara.

PayNXT360 expects more strategic partnerships between BNPL providers, banking institutions, and global payment giants over the next four to eight quarters in the UAE. This will subsequently support the growth of the overall deferred payment industry in the country from the short to medium-term perspective.

Regional BNPL companies are targeting the B2B segment to expand their business in South Africa

In South Africa, BNPL services are growing in popularity in the B2B segments, as businesses look for an efficient payment solution to manage their cash flows. Consequently, is has created growth opportunities for BNPL companies to extend their services to more merchants in the country. For instance,

• In December 2021, Nigeria-based B2B e-commerce platform, TradeDepot, announced that the firm is aiming to double down its BNPL activities in South Africa. As of December 2021, the firm provides its B2B BNPL service for merchants in Accra and Johannesburg. The announcement to extend its B2B BNPL service comes after the firm raised US$110 million in its Series B funding round.
• Notably, the B2B marketplace operated by TradeDepot connects small shops, retailers, and kiosks with wholesalers of global consumer brands. Apart from South Africa and Nigeria, the firm also has its presence in Ghana. Moreover, the firm plans to use the funding round to onboard more than five million SMEs on its platform.

As the popularity of the B2B BNPL services continues to gain growing traction, PayNXT360 expects more firms to launch their product for SMEs in South Africa over the next four to eight quarters.

Central bank makes it mandatory for BNPL firms to get a permit for offering their products in Saudi Arabia

Amid the growing adoption of BNPL products in Saudi Arabia, the Saudi Arabian central bank has made it mandatory for all buy now pay later (BNPL) firms to get a permit. Failing to get a permit from the central bank in Saudi Arabia will lead to legal actions. The announcement from the central bank comes in the midst of growing demand from industry experts to regulate the deferred payment sector.

Notably, several regulatory authorities around the world are taking measures to regulate one of the fastest-growing sectors. For instance, the Reserve Bank of Australia recently announced that BNPL firms could longer restrict the merchants from passing the surcharge fees onto the consumers in the country. Similarly, in November 2021, Bank Negara Malaysia announced that the central bank was looking to regulate the BNPL schemes under the Consumer Credit Act in 2022.

1. Africa & Middle East Buy Now Pay Later Insight Brief
2. Africa & Middle East Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook
3. Egypt Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook
4. Israel Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook
5. Kenya Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook
6. Nigeria Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook
7. Saudi Arabia Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook
8. South Africa Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook
9. United Arab Emirates Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook

Scope

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

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 Operational KPIs
• Buy Now Pay Later Revenues, 2019 – 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 – 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
• Buy Now Pay Later Accounts, 2019 – 2028

Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
• 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 Leisure & 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 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 Other: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Reasons to buy

• In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.