The “Buy Now, Pay Later” (BNPL) market in Nigeria, Kenya, and other African countries is growing quickly, according to a recent report. This growth means that more people in these countries are using BNPL services, which allow them to purchase items and pay for them over time rather than all at once. The report estimates that by the year 2030, the BNPL market in Africa could be worth around N10.63 billion.
This information comes from a report by a data company called Research and Markets, titled “Africa Buy Now Pay Later Business and Investment Opportunities Databook.” The concept of BNPL is explained by Investopedia as a type of short-term loan that lets consumers buy what they want now and pay for it later. This approach fits into a larger push by the Nigerian government to promote consumer credit, which they believe can help stimulate the economy by encouraging people to spend more.
The report highlights that from 2021 to 2024, the BNPL market in Africa has been experiencing strong growth, with an average annual growth rate of 29.4%. This growth is expected to continue, albeit at a slower pace of 14.8% from 2025 to 2030. By the end of 2030, the BNPL market is projected to grow from a value of $4.48 billion in 2024 to about $10.63 billion.
Several factors are contributing to this growth in the BNPL sector across Africa. These include partnerships between companies, the integration of BNPL services into online shopping platforms, and the expansion of BNPL services into different industries. Although there haven’t been many reports on new regulations yet, the demand for BNPL services is increasing, especially among people who don’t have access to traditional banking services. Over the next few years, the BNPL market is expected to continue evolving, with more growth and possibly new regulations to ensure that the market remains sustainable.
In Nigeria specifically, the report notes that in May 2024, Jumia Nigeria partnered with two companies, Easybuy and CredPal, to offer BNPL options to consumers. This means that shoppers can now buy products and pay for them in installments, which is becoming more common in online shopping platforms across Africa.
In addition, Mastercard has teamed up with a company called Lipa Later to provide BNPL solutions in several countries, including Kenya, Rwanda, Uganda, and Nigeria. This partnership aims to improve financial inclusion, which means making it easier for people to access financial services.
The report also mentions that there is a growing demand for flexible payment options among consumers. Many people are looking for ways to access credit, especially those who are underserved by traditional banks. This trend is expected to continue in the coming years, with more partnerships and services being introduced to make BNPL more accessible throughout Africa.
As the BNPL market grows, competition is increasing due to the expansion of services, new partnerships, and changes in regulations that aim to protect consumers. Over the next few years, the sector is likely to see even more growth and competition, with a focus on compliance with regulations. Companies that invest in technology and innovation will be better equipped to succeed in this changing market and take advantage of new opportunities.
In Nigeria, the Central Bank has introduced stricter rules for digital lenders to protect consumers and prevent excessive borrowing. These new guidelines also apply to BNPL providers in the country.
Looking ahead to the next few years, the report suggests that current BNPL providers will likely expand their reach and offer a wider range of products to stay competitive. There may also be more partnerships and acquisitions as companies look to grow and reduce costs. Investments in technology, especially artificial intelligence for assessing credit risk and understanding customer needs, are expected to enhance services and personalization. As regulations continue to develop, ensuring compliance will be crucial for companies entering the market and maintaining their operations, leading them to focus on transparent and responsible lending practices.
