Nigeria 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

Nigeria 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

According to PayNXT360, BNPL payments in the country are expected to grow by 16.8% on an annual basis to reach US$1,425.8 million in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 11.0% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$1,221.1 million in 2023 to reach US$2,406.0 million by 2029.

Key Developments in the BNPL Sector in India
The Buy Now Pay Later (BNPL) sector in Nigeria has seen significant product launches and partnerships that aim to enhance consumer access to credit and e-commerce. Here are the key developments:

Product Launches and Innovations

Jumia's New Partnerships: On May 21, 2024, Jumia Nigeria announced partnerships with Easybuy and CredPal to integrate BNPL options into its e-commerce platform. This initiative allows customers to make purchases and pay in installments, thereby increasing accessibility and promoting cashless transactions within Jumia's ecosystem. The CEO of Jumia Nigeria emphasized the importance of these partnerships in expanding purchasing power and driving e-commerce adoption in Nigeria.
Carbon's BNPL Offering: Carbon, a prominent player in Nigeria's BNPL space, continues to lead the market with its product Carbon Zero, which enables users to buy items and pay in four interest-free installments. This service has gained traction as it caters to a growing demand for flexible payment options amid rising inflation and declining purchasing power in Nigeria.

Strategic Partnerships

Jumia Partners with CredPal and Easybuy - In May 2024, leading African e-commerce platform Jumia entered into strategic partnerships with payment fintechs CredPal and Easybuy to provide enhanced ""Buy Now, Pay Later"" services to customers in Nigeria.
The partnerships enable Jumia customers to buy products on the marketplace and spread out payments over time, promoting cashless transactions and financial inclusion in e-commerce.

These partnerships demonstrate the growing importance of BNPL in Nigeria's e-commerce and financial inclusion landscape. By offering flexible payment options, BNPL providers are making online shopping more accessible and driving the adoption of digital payments in the country.

Regulatory Changes

Consumer Protection Regulations - Implementation of Consumer Protection Laws: BNPL providers in Nigeria are required to comply with consumer protection laws that safeguard customers from unfair lending practices. This includes transparency in fees, repayment terms, and the handling of complaints.
Regulatory Compliance for Data Privacy: BNPL companies must adhere to strict data privacy regulations, ensuring that customer data is protected and used responsibly. This is crucial as the sector grows and handles increasing volumes of sensitive financial information.
The recent developments show a growing recognition of the need for balanced regulation to encourage innovation in the BNPL sector while protecting consumers from associated risks.
The BNPL sector in Nigeria is rapidly expanding, driven by new partnerships and innovations from key players like Jumia and Carbon. Strategic alliances with fintechs and tier-1 banks are enhancing consumer access to flexible payment options and promoting financial inclusion. Concurrently, regulatory advancements are ensuring consumer protection and data privacy, balancing innovation with safety in the growing BNPL market.

The BNPL payment industry in Nigeria 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.

PayNXT360’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.