Buy Now Pay Later Payments Expected to Grow by 22.4% in Africa And The Middle East
Buy Now Pay Later (BNPL) Payments is expected to grow by 22.4% in Africa and The Middle East on an annual basis to reach US$15.5 billion in 2024.
The medium to long-term growth story of the BNPL industry in the region remains strong. The 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 regions will increase from US$12.6 billion in 2023 to US$32.6 billion by 2029.
According to research, the comprehensive landscape of the Buy Now Pay Later (BNPL) industry in Africa and the Middle East is expected to achieve significant growth in the upcoming years.
The latest research offering brings to light the buoyant expansion of the BNPL market within these regions, which reflects the increasing acceptance of BNPL services among a wide demographic base in these rapidly evolving economies.
It is understood that Africa and the Middle East have a large population of young, digitally native consumers who are comfortable with technology and mobile banking. These consumers are driving the demand for innovative payment solutions that offer convenience, transparency, and seamless user experiences. BNPL services leverage digital platforms and mobile apps to cater to the preferences of this tech-savvy demographic.
Also, as a pivotal financial mechanism, BNPL is revolutionizing consumer credit systems by allowing more flexible payment options for shoppers in various sectors. In-depth analyses indicate a diversified spread of BNPL adoption across several end-use industries, ranging from retail shopping to travel, and from healthcare to automotive services.
Nuanced insights into consumer attitudes underscore the potential for accelerated adoption of BNPL services, with data outlining key demographic segments, spending patterns, and transactional behaviors.
As e-commerce platforms continue to see a surge in consumer traffic and evolving shopping habits, the BNPL model is set to play an instrumental role in shaping the future of online and offline retail experiences.
Notably, as more consumers in Africa and the Middle East embrace online shopping, there is a growing demand for flexible payment options that allow them to make purchases without immediate full payment. BNPL services provide shoppers with the convenience of deferring payment over time, making online shopping more accessible and affordable.
The projected growth of BNPL payments in Africa and the Middle East reflects the increasing demand for convenient, flexible, and inclusive payment solutions in the region.
