The 'Buy Now, Pay Later' (BNPL) market in Nigeria, Kenya, and other African countries is expanding rapidly, with projections indicating it could reach $10.63 billion by 2030, according to a new report from Research and Markets.
The report, titled Africa Buy Now Pay Later Business and Investment Opportunities Databook, highlights the increasing adoption of BNPL services across the continent. The sector, which experienced a compound annual growth rate (CAGR) of 29.4% from 2021 to 2024, is expected to maintain an upward trajectory with a projected CAGR of 14.8% from 2025 to 2030.
Investopedia describes BNPL as a short-term financing model that allows consumers to make purchases and pay over time. This aligns with the Nigerian government's push for a consumer credit culture through the Nigerian Consumer Credit Corporation, aimed at boosting economic activity by increasing spending.
The rapid growth of BNPL services in Africa has been driven by strategic partnerships, integration into e-commerce platforms, and expansion into various sectors. The report notes that while specific regulatory changes are yet to be widely implemented, growing consumer demand for credit solutions, particularly among the unbanked population, is fueling the market's expansion.
In Nigeria, Jumia Nigeria launched BNPL partnerships with Easybuy and CredPal in May 2024, enabling consumers to spread payments over time. This reflects the increasing incorporation of BNPL options in Africa's e-commerce sector to attract more customers.
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The report further outlines key factors driving the BNPL market's expansion, including the rising demand for flexible payment options, efforts to enhance financial inclusion, and the growing competition among providers. The sector is expected to evolve with heightened regulatory scrutiny, increased strategic partnerships, and technological advancements such as AI-driven credit risk assessments.
The Central Bank of Nigeria has already introduced stricter guidelines for digital lenders, extending these regulations to BNPL providers to protect consumers and curb excessive debt accumulation.
Looking ahead, industry players are expected to expand their geographic presence and diversify product offerings to remain competitive. Market consolidation through partnerships and acquisitions is anticipated, as companies seek to scale operations and achieve economies of scale. Additionally, regulatory frameworks will continue evolving to ensure responsible lending practices while fostering fintech innovation.
With investments in technology and compliance becoming critical, the BNPL market in Africa is set for sustained growth, offering new opportunities for businesses and consumers alike.
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