South Africa Buy Now Pay Later Market Outlook to 2027F - Driven by digitalization, government support, increasing working age population, with upsurge in Gen-Z & millennials population coupled with shifting preference towards easy interest free extra credit line sources

The report “South Africa Buy Now Pay Later Market Outlook to 2027f- Driven by digitalization, government support, increasing working age population, with upsurge in Gen-Z & millennials population coupled with shifting preference towards easy interest free extra credit line sources” provides a comprehensive analysis of the potential of BNPL Industry in South Africa. The report also covers overview and genesis of the industry, market size in terms of revenue generated; market segmentation by Mode of Payments, by end users, by Age Group of Consumers, by revenue division and by average order value; growth enablers and drivers, challenges and bottlenecks, trends driving adoption of digital innovation; regulatory framework; end user analysis, industry analysis, competitive landscape including competition scenario, market shares of major players present across South Africa. The report concludes with future market projections of each product segmentation and analyst recommendations.

Detailed Analysis on the Buy Now Pay Later Market:

The Buy Now Pay Later industry in South Africa is primarily driven by the need for extra credit line sources to manage the expenses at the time of need fueled by government initiatives to enhance digitalization Buy Now Pay Later Market in South Africa recorded a positive CAGR of more than 50% on the basis of revenue generated in between 2022P and 2027E.

Market Segmentation:

By mode of payment:

Buy Now Pay Later market can be segmented on the basis of mode of payment: online and offline
Covid-19 fuelled the need for online mode of transaction due to adoption of cashless payments which led to the boom of the industry in the country.

By end user:

Buy Now Pay Later market can be segmented on the basis of type of end user: Ecommerce Giants, Physical Retailers, Travel and Entertainment Merchants and Food Aggregators

By age group:

Buy Now Pay Later market can be segmented on the basis of age group: Below 24 years, 24-36 years, 36-50 years and Above 50 years. This is attributed to the increasing working age population which is gradually shifting from credit cards to BNPL as mode of payments.

Competitive Landscape in South Africa BNPL Market:

Thriving partnerships between banks and local BNPL players in the region would enable BNPL players to further position themselves as a trustworthy purchase option among the millenials and gen-z who are prone to rapid behavioural and lifestyle changes. The BNPL market in South RSA is moderately competitive in nature with the presence of 4-6 players operating across the landscape.The market is also witnessing inception of global giants in the industry which can be encapsulated with the recent acquisition of Payflex. TymeBank, Mobicred, PayJustNow and Payflex are some the key players operating in the BNPL landscape of South Africa among others.

Future Outlook and Projections of the Industry

Buy Now Pay Later industry in South Africa is estimated to generate a revenue of USD 1569 Million in 2027E, expanding at a CAGR of double digits in between 2022P and 2027E Increasing demand for extra credit line with less stringent KYC procedures without relying on CIBIL scores will be traction for consumers for utilization of BNPL services. Retailers as end user will witness upsurge in revenue contribution to 80% of the market share as more retailers will be coming forward to incorporate the BNPL services in their online and offline store to increase consumer base by collaborating with BNPL players.

Key Segments Covered

South Africa BNPL Market:

By mode of payment (by Revenue) 2022 and 2027:

• Online
• Offline

By End Users (by Revenue) 2022 and 2027:

• Retailers
• Food Merchants
• Travel Merchants

By Age Group of Users (by Revenue) 2022 and 2027:

• Below 20 years
• 20-40 years
• Above 40 years

Key Target Audience:

• Bankers and associations
• Government associations
• Corporates
• Investment firms
• Government Bodies & Regulating Authorities
• Fintech companies
• Venture capitalists

Time Period Captured in the Report:

• Historical Year: 2019-2021
• Base Year: 2022
• Forecast Period: 2023- 2027F

Companies Covered:

• TymeBank
• PAYJUSTNOW
• Mobicred
• PayFlex

Key Topics Covered in the Report:

• BNPL Industry positioning
• Socio demographic Outlook of South Africa
• Presence of Global BNPL Players
• Trends of BPNL Industry
• Market size of BPNL
• BNPL transaction process

Key Features and developments in South Africa BPNL

• SWOT Analysis of South Africa BNPL
• Issues and Challenges in South Africa BNPL
• Investment Analysis of players in BNPL Space
• Role of Government and regulations in South Africa BNPL
• Porter’s Five force Analysis in South Africa BPNL
• Future Market Size of BNPL in South Africa