Africa Buy Now Pay Later Business and Investment Opportunities Databook - 90+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2026 Update

Key Trends and Drivers

Platforms scale BNPL at checkout and extend it into stores

• Large ecommerce and retail platforms are embedding BNPL directly at checkout and then extending it into physical stores. In Nigeria, Jumia partnered with Easybuy and CredPal in May 2024 to offer instalment payments at checkout, allowing customers to spread payments while Jumia’s merchants still receive funds upfront. In South Africa, Payflex reports growing adoption among both online and offline retailers, positioning BNPL as a standard option alongside cards and EFT, especially in fashion and electronics.
• E-commerce penetration and digital payment adoption are increasing across markets such as South Africa, Nigeria, Kenya, and Egypt, making checkout integration the most efficient distribution route. Merchants use BNPL to support conversion without bearing credit risk. Providers typically fund the transaction and pay merchants upfront. This is attractive in low-margin retail environments and in markets with volatile consumer incomes. Competitive pressure from other payment methods (cards, mobile money, bank credit) pushes BNPL providers to differentiate on integration depth, time-to-activate, and merchant tools rather than solely on price.
• BNPL is likely to become a default option on major ecommerce platforms in key markets, with a deeper omnichannel rollout across chains in fashion, electronics, grocery, and pharmacies. Merchant bargaining power will increase as platforms integrate multiple BNPL options and traditional credit products, compressing BNPL merchant fees and pushing providers toward value-added services (analytics, loyalty, marketing support). Smaller stand-alone BNPL providers that lack a strong platform or PSP relationships will find it harder to sustain scale and may pivot to niches or partnership-led models.

Mobile money, telcos and device financiers embed BNPL into everyday payments

• BNPL is being embedded into mobile money ecosystems and telecom offerings, pushing it beyond ecommerce into everyday spending and asset access. In Kenya, Safaricom and EDOMx’s Faraja BNPL product allows customers to pay later for purchases at merchants accepting Lipa na M-PESA; merchants receive full payment upfront, while customers repay later. Craft Silicon’s SpotIt and pay-as-you-go models, such as M-Kopa, extend instalment financing to smartphones, solar systems, and other assets, targeting underbanked consumers in Kenya and neighbouring markets.
• Mobile money is widely used in East Africa and parts of West and Central Africa, providing a ready-made channel for credit distribution and repayment. Telcos and device financiers already run large customer bases with detailed usage data, which lowers acquisition and underwriting costs for BNPL-style credit compared with stand-alone fintech apps. Partnerships such as Lipa Later’s collaboration with Mastercard to expand BNPL across Kenya, Uganda, Rwanda and Nigeria aim to leverage global card networks while building on local mobile and merchant ecosystems.
• BNPL features will increasingly be presented as part of “account to pay” or “wallet” experiences, e.g., pay later for airtime, utilities, insurance, and tickets rather than as separate BNPL apps. Telco-led and device-financing models are likely to hold a strong position in East Africa and other mobile-money-heavy markets, especially for lower-ticket items and essential services. Competition between mobile money platforms, banks and fintechs over ownership of the consumer relationship will intensify, with BNPL becoming one of several credit features (alongside overdrafts, nano-loans and micro-savings).

Regulators broaden oversight of digital credit and BNPL providers

• Regulatory bodies across Africa are extending consumer credit and digital lending frameworks to cover BNPL and similar products, focusing on licensing, disclosure and affordability. In Kenya, amendments under the Business Laws (Amendment) Act 2024 mean all non-deposit-taking credit providers, including BNPL providers, must obtain licences from the Central Bank of Kenya, which is tightening oversight of both digital and traditional lenders.
• In Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has introduced DEON digital lending regulations, extending obligations across digital platforms that facilitate unsecured credit, including BNPL-style offers. In Egypt, valU’s digital onboarding at noon marks the first BNPL transaction executed under the Financial Regulatory Authority’s fintech licence, signalling that BNPL is being clearly brought under formal regulatory categories.
• The rapid growth of digital lending and BNPL has raised concerns about over-indebtedness, opaque terms, and debt collection practices. Regulators respond by extending existing consumer credit rules to digital channels. Governments in Nigeria, Kenya, Egypt, and South Africa are trying to deepen formal credit markets while maintaining financial stability, which is driving stricter licensing, reporting, and governance standards for BNPL.
• BNPL providers will increasingly operate under the same or similar rules as other consumer credit institutions, including affordability assessments, standardized disclosures, complaint handling, and data-sharing obligations. Compliance and capital costs are likely to rise, favouring better-funded players and bank-backed models, while smaller or lightly capitalized BNPL fintechs may exit, consolidate or pivot to pure technology-provider roles. The result is a smaller number of licensed, multi-market providers, with clearer risk controls and closer partnerships with banks, insurance firms and credit bureaus.

Providers pivot into vertical-specific and higher-value use cases while focusing on sustainability

• BNPL in Africa is expanding from general retail into specific sectors such as healthcare, education, travel and SME spending. Ecofinagency reports that Lipa Later has moved beyond consumer retail to finance healthcare and education services in Kenya, Uganda, and Rwanda, reflecting demand for instalment payments on essential, higher-ticket purchases. In Egypt, valU offers instalment financing across categories, including healthcare, education, travel and residential solar, and has recently partnered with TimeOut Sports & Entertainment to allow Egyptian fans to spread payments for FIFA World Cup 2026 hospitality packages.
• Households face constrained disposable incomes and often use instalment plans for essential or semi-essential services, not just for discretionary shopping. This supports BNPL adoption in healthcare and education, where upfront payments can be a barrier. Providers are under pressure to reach profitability and improve portfolio quality. Vertical-specific solutions allow them to work closely with merchants (clinics, schools, travel agencies, SMEs) and design tighter risk controls and repayment schedules. The recent financial difficulties and administrative issues at the Kenyan BNPL firm Lipa Later highlight the need for stronger risk management and sustainable economics; investors and regulators are now more cautious about growth-at-all-costs strategies.
• BNPL propositions are likely to become more differentiated by use case (e.g., “school fee plans”, “health procedure financing”, “SME inventory instalments”), particularly in East and North Africa. Providers with diversified sector portfolios and more conservative risk practices are better positioned to secure funding and regulatory approval, while single-segment consumer BNPL models without strong underwriting will face increasing constraints. Partnerships with insurers, hospitals, schools and travel intermediaries will deepen, making BNPL an embedded financing tool in these value chains rather than a stand-alone checkout button.

Competitive Landscape

Current State of the Market

• BNPL in Africa operates as a fragmented but increasingly regulated credit segment shaped by ecommerce platforms, mobile-money ecosystems and specialized fintech lenders. South Africa, Kenya, Nigeria and Egypt anchor most activity, each with distinct competitive drivers. In South Africa, BNPL is integrated into established ecommerce and physical retail networks, while in Kenya and Nigeria, mobile money and super app environments influence adoption. Regulatory tightening in Kenya (CBK licensing for credit providers), Nigeria (FCCPC digital lending compliance) and Egypt (FRA fintech licensing) has raised the barriers to entry, shifting competition toward underwriting quality, compliance and distribution partnerships.

Key Players and New Entrants

• Regional fintechs such as Payflex (South Africa), Lipa Later and Faraja/EDOMx (Kenya), valU (Egypt), and CredPal (Nigeria) remain central to market development. Ecommerce platforms, including Jumia, increasingly integrate BNPL through partnerships. Mobile-money-led models such as M-PESA Faraja expand access to offline merchants. New entrants remain selective banks and card networks are entering through partnerships rather than full BNPL builds. Mastercard’s multi-market collaboration with Lipa Later and Jumia’s recent partnerships with consumer credit providers illustrate this partnership-led expansion over standalone fintech launches.

Recent Launches, Mergers, and Acquisitions

• Activity has centred on partnerships rather than major acquisitions. In 2024, Jumia expanded instalment options through collaborations with EasyBuy and CredPal in Nigeria. valU broadened acceptance through onboarding on noon.com and sector-specific partnerships in Egypt. Safaricom and EDOMx scaled Faraja across Kenyan merchants following regulatory clearance. No large BNPL-specific M&A has occurred recently, but several firms, including Lipa Later in Kenya, have undergone restructuring efforts, signalling capital and operating pressures within the sector.

This is a bundled offering, combining the following 5 reports, covering 250+ tables and 400+ figures for the Buy Now Pay Later Market:

Report Scope

Africa Retail Industry & Ecommerce Market Size and Forecast

• Retail Industry - Spend Value Trend Analysis
• Buy Now Pay Later Share of Retail Industry
• Ecommerce - Spend Value Trend Analysis
• Buy Now Pay Later Share of Ecommerce

Africa Buy Now Pay Later Market Size and Industry Attractiveness

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
• Market Share Analysis by Key Players

Africa Buy Now Pay Later Revenue Analysis

• 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

Africa Buy Now Pay Later Operational KPIs

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

Africa Buy Now Pay Later Spend Analysis by Business Model

• Two-Party Business Model
• Third-Party Business Model

Africa Buy Now Pay Later Spend Analysis by Purpose

• Convenience
• Credit

Africa Buy Now Pay Later Spend Analysis by Merchant Ecosystem

• Open Loop System
• Closed Loop System

Africa Buy Now Pay Later Spend Analysis by Distribution Model

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Africa Buy Now Pay Later Spend Analysis by Channel

• Online Channel
• POS Channel

Africa Buy Now Pay Later By End-Use Sector: Market Size and Forecast

• Retail Shopping
• Home Improvement
• Travel
• Media and Entertainment
• Services
• Automotive
• Health Care and Wellness
• Others

Africa Buy Now Pay Later By Retail Product Category: Market Size and Forecast

• Apparel, Footwear & Accessories
• Consumer Electronics
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Entertainment & Gaming
• Other

Africa Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Spend Share by Age Group
• Spend Share by Default Rate by Age Group
• Spend Share by Income
• Gross Merchandise Value Share by Gender
• Adoption Rationale
• Spend by Monthly Expense Segments
• Average Number of Transactions per User Annually
• BNPL Users as a Percentage of Total Adult Population

Reasons to Buy

• Strategic and Innovation Insights: Gain clarity on the future direction of Africa's Buy Now Pay Later market by analysing strategic initiatives, business model evolution, and innovation-led approaches adopted by key BNPL providers to strengthen market positioning.
• Comprehensive Understanding of BNPL Market Dynamics in Africa: Assess market size, growth outlook, and structural shifts across retail and e-commerce, supported by detailed segmentation by channel, business model, distribution model, merchant ecosystem, end-use sector, and consumer demographics, underpinned by 90+ KPIs.
• Value and Volume-Based KPIs for Market Accuracy: Leverage a robust set of value and volume KPIs, including GMV, average transaction value, transaction volume, active users, revenue, and bad debt, to develop a precise understanding of BNPL adoption, usage intensity, and market maturity.
• Competitive Landscape Assessment: Obtain a clear snapshot of the BNPL competitive landscape in Africa, including market share analysis of leading providers, enabling informed benchmarking and evaluation of market concentration and competitive intensity.
• Actionable Inputs for Market Entry and Expansion Strategies: Identify high-growth categories, priority end-use sectors, and distribution channels to fine-tune go-to-market and partnership strategies, while assessing key trends, regulatory considerations, and risk factors shaping the BNPL ecosystem.
• In-Depth Consumer Behaviour Analysis: Enhance ROI by understanding evolving consumer attitudes and spending behaviour, with insights into BNPL adoption drivers, usage frequency, income and age-based usage patterns, gender splits, and monthly expense segmentation.