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South Africa Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

  • ID: 5304985
  • Report
  • January 2022
  • Region: Africa, South Africa
  • 50 Pages
  • PayNXT360

FEATURED COMPANIES

  • Mobicred
  • Payflex
  • Payjustnow
  • TymeBank
According to the Q4 2021 BNPL Survey, BNPL payment in South Africa is expected to grow by 97.5% on annual basis to reach US$ 457.3 million in 2022.

Medium to long term growth story of BNPL industry in South Africa remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 48.0% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 231.6 million in 2021 to reach US$ 4797.9 million by 2028.

The global pandemic has created the perfect environment for the growth of alternative payment solutions such as BNPL in South Africa. Economic instability in the last few quarters led to a growing interest among consumers for BNPL schemes. Consequently, the adoption of the BNPL product has surged significantly over the last four to eight quarters in South Africa.

The rising popularity of the BNPL industry in the South African market is also attracting global BNPL platforms, who are looking to capitalize on the high-growth potential offered by the country. All of these trends in the BNPL sector are a clear indication of the future growth prospect in South Africa. The publisher also expects more consumers to use BNPL products in the country going forward, as household incomes are projected to remain under pressure over the next few quarters.

Strategic partnerships are increasing to offer BNPL options to small and medium enterprises

As the demand for BNPL payment methods continues to grow among consumers in South Africa, BNPL firms and payments providers are entering into a strategic partnership to offer BNPL options to small and medium enterprises the country. For instance,
  • In November 2021, MoreTyme, the BNPL platform offered by South African digital bank, entered into a strategic alliance with Adumo, a fintech and payment provider. Under the collaboration, the two firms are expected to enable more SMEs across South Africa with the BNPL payment method. Notably, the payment method is expected to help merchants drive more revenue and footfall at their stores.
  • Adumo has a network of 50,000 active clients and 90,000 active card machines and processes over R80 billion in transactions annually across thirteen African markets. Through its strategic partnership with the company is aiming to rapidly expand its product adoption among consumers in South Africa.

Regional BNPL companies are targeting the B2B segment to expand their business in South Africa

In South Africa, BNPL services are growing in popularity in the B2B segments, as businesses look for an efficient payment solution to manage their cash flows. Consequently, is has created growth opportunities for BNPL companies to extend their services to more merchants in the country. For instance,
  • In December 2021, Nigeria-based B2B e-commerce platform, TradeDepot, announced that the firm is aiming to double down its BNPL activities in South Africa. As of December 2021, the firm provides its B2B BNPL service for merchants in Accra and Johannesburg. The announcement to extend its B2B BNPL service comes after the firm raised US$110 million in its Series B funding round.
  • Notably, the B2B marketplace operated by TradeDepot connects small shops, retailers, and kiosks with wholesalers of global consumer brands. Apart from South Africa and Nigeria, the firm also has its presence in Ghana. Moreover, the firm plans to use the funding round to onboard more than five million SMEs on its platform.

As the popularity of the B2B BNPL services continues to gain growing traction, the publisher expects more firms to launch their product for SMEs in South Africa over the next four to eight quarters.

Global BNPL players are entering the South African BNPL market through mergers and acquisitions

While BNPL has become a mainstream payment method in markets such as the United States, United Kingdom, and Australia, the deferred payment solution is exploding in other markets as well, driven by a collective effort from local and global BNPL players. The growing popularity and demand for BNPL services in Africa are attracting global players. Consequently, mergers and acquisition deals are also on the rise. For instance,
  • In September 2021, Australia-based global BNPL firm, Zip, announced that the firm had acquired Payflex, one of the leading BNPL platforms in South Africa. Before acquiring Payflex, Zip also bought a 25% stake in the BNPL platform when it invested in Payflex in April 2021.

Scope


This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in South Africa. Below is a summary of key market segments:

South Africa BNPL Market Size and Spending Pattern

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

South Africa Buy Now Pay Later Operational KPIs

  • Buy Now Pay Later Revenues, 2019 - 2028
  • Buy Now Pay Later Share by Revenue Segments
  • Buy Now Pay Later Merchant Commission, 2019 - 2028
  • Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
  • Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
  • Buy Now Pay Later Accounts, 2019 - 2028
  • Buy Now Pay Later Bad Debt, 2019 - 2028

South Africa Buy Now Pay Later Market Share Analysis by Key Players


South Africa Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • Online Channel
  • POS Channel

South Africa Buy Now Pay Later in Retail Shopping: Market Size and Forecast

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

South Africa Buy Now Pay Later in Home Improvement: Market Size and Forecast

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

South Africa Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

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

South Africa Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

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

South Africa Buy Now Pay Later in Other: Market Size and Forecast

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

South Africa Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

  • Buy Now Pay Later Sales Uplift by Product Category
  • Buy Now Pay Later Spend Share by Age Group
  • Buy Now Pay Later Gross Merchandise Share by Income
  • Buy Now Pay Later Gross Merchandise Value Share by Gender
  • Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Reasons to buy

  • In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
  • Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
  • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.
  • Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.
  • Market Share by Key Players
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Mobicred
  • Payflex
  • Payjustnow
  • TymeBank

1. About this Report
1.1 Summary
1.2 Methodology
1.3 Disclaimer
2. South Africa BNPL Market Size and Future Growth Dynamics
2.1 Consumer Behavior
2.2 Competitive Landscape and Growth Strategies
2.3 Market Share
2.4 Regulatory Trends
3. South Africa Buy Now Pay Later Industry Attractiveness
3.1 South Africa Buy Now Pay Later - Gross Merchandise Value Trend Analysis, 2019-2028
3.2 South Africa Buy Now Pay Later - Average Value Per Transaction Trend Analysis, 2019-2028
3.3 South Africa Buy Now Pay Later - Transaction Volume Trend Analysis, 2019-2028
4. South Africa Buy Now Pay Later Operational KPIs
4.1 Buy Now Pay Later Revenues, 2019 - 2028
4.2 Buy Now Pay Later Share by Revenue Segments
4.3 Buy Now Pay Later Merchant Commission, 2019 - 2028
4.4 Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
4.5 Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
4.6 Buy Now Pay Later Accounts, 2019 - 2028
4.7 Buy Now Pay Later Bad Debt, 2019 - 2028
5. South Africa Buy Now Pay Later Spend Analysis by Channel
5.1 Buy Now Pay Later Market Share by Channel, 2019 - 2028
5.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2019 - 2028
5.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2019 - 2028
6. South Africa Buy Now Pay Later Snapshot by End-Use Sector
6.1 Buy Now Pay Later Market Share by End-Use Sector - Emerging Avenues and Future Growth Prospects
6.2 Buy Now Pay Later Sales Uplift by End-Use Sector
6.3 Buy Now Pay Later Share by Retail Product Category
7. South Africa Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019 - 2028
7.1 South Africa Buy Now Pay Later Retail Shopping - Gross Merchandise Value Trend Analysis, 2019-2028
7.2 South Africa Buy Now Pay Later Retail Shopping - Average Value Per Transaction Trend Analysis, 2019-2028
7.3 South Africa Buy Now Pay Later Retail Shopping - Transaction Volume Trend Analysis, 2019-2028
8. South Africa Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019 - 2028
8.1 South Africa Buy Now Pay Later Home Improvement - Gross Merchandise Value Trend Analysis, 2019-2028
8.2 South Africa Buy Now Pay Later Home Improvement - Average Value Per Transaction Trend Analysis, 2019-2028
8.3 South Africa Buy Now Pay Later Home Improvement - Transaction Volume Trend Analysis, 2019-2028
9. South Africa Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast, 2019 - 2028
9.1 South Africa Buy Now Pay Later Leisure & Entertainment - Gross Merchandise Value Trend Analysis, 2019-2028
9.2 South Africa Buy Now Pay Later Leisure & Entertainment - Average Value Per Transaction Trend Analysis, 2019-2028
9.3 South Africa Buy Now Pay Later Leisure & Entertainment - Transaction Volume Trend Analysis, 2019-2028
10. South Africa Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019 - 2028
10.1 South Africa Buy Now Pay Later Healthcare and Wellness - Gross Merchandise Value Trend Analysis, 2019-2028
10.2 South Africa Buy Now Pay Later Healthcare and Wellness - Average Value Per Transaction Trend Analysis, 2019-2028
10.3 South Africa Buy Now Pay Later Healthcare and Wellness - Transaction Volume Trend Analysis, 2019-2028
11. South Africa Buy Now Pay Later in Other Segment: Market Size and Forecast, 2019 - 2028
11.1 South Africa Buy Now Pay Later Other Segment - Gross Merchandise Value Trend Analysis, 2019-2028
11.2 South Africa Buy Now Pay Later Other Segment - Average Value Per Transaction Trend Analysis, 2019-2028
11.3 South Africa Buy Now Pay Later Other Segment - Transaction Volume Trend Analysis, 2019-2028
12. South Africa Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
12.1 Buy Now Pay Later Spend Share by Age Group
12.2 Buy Now Pay Later Gross Merchandise Share by Income
12.3 Buy Now Pay Later Gross Merchandise Value Share by Gender
12.4 Buy Now Pay Later Adoption Rationale
13. Further Reading
13.1 About the Publisher
13.2 Related Research

List of Figures

Figure 1: Methodology Framework
Figure 2: South Africa Buy Now Pay Later - GMV and Adoption Rationale
Figure 3: South Africa Buy Now Pay Later - Share by Gender and Age Group
Figure 4: South Africa Buy Now Pay Later - Market Share Analysis by Key Players (%)
Figure 5: South Africa Buy Now Pay Later - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 6: South Africa Buy Now Pay Later - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 7: South Africa Buy Now Pay Later - Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 8: South Africa Buy Now Pay Later - Revenues (US$ Million), 2019-2028
Figure 9: Buy Now Pay Later Share by Revenue Segments
Figure 10: South Africa Buy Now Pay Later - Merchant Commission (US$ Million), 2019-2028
Figure 11: South Africa Buy Now Pay Later - Missed Payment Fee Revenue (US$ Million), 2019-2028
Figure 12: South Africa Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Figure 13: South Africa Buy Now Pay Later - Accounts (Thousand), 2019-2028
Figure 14: South Africa Buy Now Pay Later - Bad Debt (US$ Million), 2019-2028
Figure 15: South Africa Buy Now Pay Later - Gross Merchandise Value Market Share by Channel (%), 2019-2028
Figure 16: South Africa Buy Now Pay Later - Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Figure 17: South Africa Buy Now Pay Later - Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Figure 18: South Africa Buy Now Pay Later - Market Share by End-Use Sector, 2021 Vs. 2028
Figure 19: South Africa Buy Now Pay Later - Market Share by End-Use Segment, 2021
Figure 20: South Africa Buy Now Pay Later - Market Share by Retail Product Category, 2021
Figure 21: South Africa Buy Now Pay Later Retail Shopping - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 22: South Africa Buy Now Pay Later Retail Shopping - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 23: South Africa Buy Now Pay Later Retail Shopping - Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 24: South Africa Buy Now Pay Later Home Improvement - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 25: South Africa Buy Now Pay Later Home Improvement - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 26: South Africa Buy Now Pay Later Home Improvement - Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 27: South Africa Buy Now Pay Later Leisure & Entertainment - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 28: South Africa Buy Now Pay Later Leisure & Entertainment - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 29: South Africa Buy Now Pay Later Leisure & Entertainment - Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 30: South Africa Buy Now Pay Later Healthcare and Wellness - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 31: South Africa Buy Now Pay Later Healthcare and Wellness - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 32: South Africa Buy Now Pay Later Healthcare and Wellness - Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 33: South Africa Buy Now Pay Later Other Segment - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 34: South Africa Buy Now Pay Later Other Segment - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 35: South Africa Buy Now Pay Later Other Segment - Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 36: South Africa Buy Now Pay Later - Share by Age Group in Gross Merchandise Value Terms
Figure 37: South Africa Buy Now Pay Later - Share by Income Group in Value Terms
Figure 38: South Africa Buy Now Pay Later - Share by Gender in Value Terms
Figure 39: Buy Now Pay Later - Adoption Rationale Gross Merchandise Value Analysis

List of Tables

Table 1: South Africa Buy Now Pay Later - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 2: South Africa Buy Now Pay Later - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 3: South Africa Buy Now Pay Later - Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 4: South Africa Buy Now Pay Later - Revenues (US$ Million), 2019-2028
Table 5: South Africa Buy Now Pay Later - Merchant Commission (US$ Million), 2019-2028
Table 6: South Africa Buy Now Pay Later - Missed Payment Fee Revenue (US$ Million), 2019-2028
Table 7: South Africa Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Table 8: South Africa Buy Now Pay Later - Accounts (Thousand), 2019-2028
Table 9: South Africa Buy Now Pay Later - Bad Debt (US$ Million), 2019-2028
Table 10: South Africa Buy Now Pay Later - Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Table 11: South Africa Buy Now Pay Later - Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Table 12: South Africa Buy Now Pay Later Retail Shopping - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 13: South Africa Buy Now Pay Later Retail Shopping - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 14: South Africa Buy Now Pay Later Retail Shopping - Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 15: South Africa Buy Now Pay Later Home Improvement - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 16: South Africa Buy Now Pay Later Home Improvement - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 17: South Africa Buy Now Pay Later Retail Shopping Home Improvement - Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 18: South Africa Buy Now Pay Later Leisure & Entertainment - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 19: South Africa Buy Now Pay Later Leisure & Entertainment - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 20: South Africa Buy Now Pay Later Leisure & Entertainment - Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 21: South Africa Buy Now Pay Later Healthcare and Wellness - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 22: South Africa Buy Now Pay Later Healthcare and Wellness - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 23: South Africa Buy Now Pay Later Healthcare and Wellness - Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 24: South Africa Buy Now Pay Later Other Segment - Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 25: South Africa Buy Now Pay Later Other Segment - Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 26: South Africa Buy Now Pay Later Other Segment - Transaction Volume Trend Analysis (Thousand), 2019-2028
Note: Product cover images may vary from those shown
  • Payflex
  • Payjustnow
  • TymeBank
  • Mobicred
Note: Product cover images may vary from those shown

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