South Africa 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

South Africa 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 16.7% on an annual basis to reach US$717.3 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 10.9% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$614.4 million in 2023 to reach US$1,201.6 million by 2029.

Key Developments in the BNPL Sector in South Africa
The Buy Now Pay Later (BNPL) sector in South Africa has experienced significant growth and development. Here are the key products and trends:

Product Launches and Innovations

New Market Entrants: The market is attracting global BNPL platforms looking to capitalize on South Africa's growth potential. This influx of new players is likely to spur competition and innovation within the sector.
PayJustNow Enhancements: PayJustNow, a prominent BNPL provider in South Africa, has continued to innovate by enhancing its platform to offer more flexible payment options. This includes allowing consumers to split their purchases into manageable installments, which has gained popularity among users seeking budget-friendly solutions.
Mobility Solutions by Mobicred: Mobicred has expanded its offerings to include mobility solutions, allowing consumers to finance purchases related to transportation. This innovation caters to the growing demand for flexible payment options in the automotive sector, enabling consumers to manage their expenses more effectively.

Strategic Partnerships

Collaborations with E-commerce Platforms: Companies like Payflex and Mobicred are forming strategic partnerships with e-commerce platforms to enhance the availability of BNPL options. These collaborations aim to provide consumers with more flexible payment solutions while driving sales for merchants.
Focus on SMEs: There is a growing trend of BNPL firms partnering with small and medium enterprises (SMEs) to offer tailored payment solutions. This approach not only supports SMEs in managing cash flow but also expands the customer base for BNPL providers.
The buy now, pay later (BNPL) sector in South Africa is growing rapidly due to increased adoption and diversification across industries. Strategic partnerships and innovative product offerings are making BNPL services more appealing to consumers seeking flexible payment solutions. The market is expected to attract more investment and innovation, solidifying its position in the South African financial landscape.

Mergers and Acquisitions

Emerging Interest from Global Players: The South African BNPL market is attracting attention from international players looking to expand their footprint. The increasing popularity of BNPL services in South Africa has led to speculation about potential future acquisitions as global firms seek to capitalize on the high growth potential of the market.

Regulatory Changes

The regulatory and government landscape for the Buy Now Pay Later (BNPL) sector in South Africa has been characterized by a focus on consumer protection and the evolving market dynamics.
Increased Regulatory Scrutiny: The South African government and financial regulators have begun to pay closer attention to the BNPL sector due to its rapid growth and rising consumer adoption. This scrutiny is driven by concerns about potential over-indebtedness among consumers, particularly in light of economic challenges and rising living costs.
Consumer Protection Initiatives: There have been discussions around implementing guidelines that would require BNPL providers to ensure responsible lending practices. This includes conducting thorough credit assessments before granting loans to consumers, aiming to mitigate the risk of consumers falling into debt traps.
Focus on Transparency: Regulators are emphasizing the need for transparency in BNPL agreements. This includes clear disclosures about fees, repayment terms, and the implications of late payments, ensuring that consumers are fully informed before entering into BNPL agreements.
The evolving regulatory framework in South Africa aims to balance BNPL sector growth with consumer protection. These developments are crucial for ensuring consumers benefit from flexible payment solutions without falling into debt traps.


The BNPL payment industry in South Africa 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.