Africa & Middle East Buy Now Pay Later Business Report 2024: BNPL Gross Merchandise Value to Reach US$19.5 Billion by 2029 from $7.5 Billion in 2023 - ResearchAndMarkets.com

The "Africa & Middle East 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" report has been added to ResearchAndMarkets.com's offering.

The BNPL payments are expected to grow by 22.3% on an annual basis to reach US$9.2 billion in 2024.

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% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$7.5 billion in 2023 to reach US$19.5 billion by 2029.

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.

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 the Buy Now, Pay Later (BNPL) Sector in Africa and the Middle East

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.

Africa

• CredPal: This Nigerian BNPL startup has expanded its offerings, allowing customers to pay in 30 days with 0% interest or spread payments over 2 to 6 months. This flexibility is available to both online and in-store shoppers, and additional benefits such as discounts and cashback are also available.
• Motito: Based in Ghana, Motito 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: In Kenya, Rwanda, Uganda, and Nigeria, Lipa Later raised $12 million to expand its BNPL services. This funding will help improve its platform and increase its regional customer base.

Middle East

• Tamara: This 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, Tabby 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: 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

Africa

• CredPal & Visa: CredPal, a 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: 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.

Middle East

• Tabby: Tabby, a leading BNPL provider in the UAE and Saudi Arabia, 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.
• Tamara: The Saudi BNPL firm 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: 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.

Mergers and Acquisitions in the BNPL Sector in Africa and the Middle East

Africa

• PayJustNow: This South African BNPL provider has rapidly expanded and reached 1 million users by August 2023. Although specific acquisitions are not detailed, the company is positioned for growth in the increasingly competitive BNPL landscape.
• Lipa Later: While not a merger or acquisition, Lipa Later's significant funding round underscores its strategic move to strengthen its market position across multiple African countries.

Middle East

• Tamara: The Saudi BNPL firm Tamara raised $110 million in a Series A funding round led by Checkout.com. The round aimed at expanding its operations and enhancing its service offerings, potentially paving the way for future acquisitions.
• Tabby: Tabby secured substantial funding to solidify its position in the BNPL market in the UAE and Saudi Arabia. Although no specific acquisitions are mentioned, this capital influx suggests potential for future strategic partnerships or acquisitions.
• Saudi Central Bank Regulations: The Saudi Central Bank's recent regulatory framework, which sets clear licensing requirements and operational guidelines for BNPL companies, may facilitate mergers and acquisitions in the sector.

Regulatory Developments in the BNPL Sector in Africa and the Middle East

Middle East

United Arab Emirates:

• In December 2023, the UAE Central Bank introduced new regulations for BNPL services. These regulations require businesses offering BNPL to operate as agents of licensed banks or financial institutions and obtain approval from the central bank.
• Fintech companies can provide short-term credit services after acquiring a restricted license. Unlicensed entities must either apply for a license or collaborate with licensed banks to continue operations. Short-term credit is loans for up to 12 months for purchasing goods or services without interest or collateral.

Saudi Arabia:

• The Saudi Central Bank introduced new BNPL regulations in December 2023, including licensing requirements and measures to enhance information security, internal policies, and consumer protection. These regulations aim to define credit limits and ensure sustainable growth in the BNPL market over the medium term.

Africa

• Although specific regulatory changes in Africa have yet to be widely reported, the overall growth of BNPL services is driven by increasing consumer demand for credit solutions, particularly among the unbanked population. As the market matures, regulatory frameworks are expected to evolve, but specific government policies or regulations have yet to be detailed in recent reports.

Key Attributes:

Research Bundle

• Africa & Middle East Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Egypt Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Israel Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Kenya Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Nigeria Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Saudi Arabia Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• South Africa Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• United Arab Emirates Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook

Scope for Each Report

BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

For more information about this report visit https://www.researchandmarkets.com/r/cj8nho

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