“Buy now, pay later” is attracting a large number of African consumers

Affected by the epidemic, at a time when global economic development is in trouble , the " buy now, pay later " (BNPL) payment method is gaining popularity among more consumers. According to foreign media reports, across the African continent, the " buy now, pay later " service is also beginning to gain traction in many countries .

As early as last year, the acquisition of South African BNPL company Payflex by Australian company Zip caused a sensation . The Zip-Payflex transaction showed that the time is ripe for the development of BNPL services in the African continent . Since then, more and more global investors have invested in Africa to promote the development of BNPL services in the region.

In January this year , Kenya-based consumer credit and BNPL platform Lipa Later raised $12 million from a group of international investors to expand BNPL services in Africa . In addition , Moroccan B2B e-commerce and fintech platform Chari also announced that it has obtained a valuation of $100 million in financing and plans to enter the BNPL field.

“Chari will use the funds from this round to test BNPL services with existing customers,” Chari CEO Ismael Belkayat said in a statement .

According to PYMNTS , Egypt is becoming another country in Africa that shows great growth potential . Under the pressure of inflation on consumers , the new shopping trend of BNPL is rapidly attracting more shoppers.

Last month, Egyptian fintech company Sympl announced it had raised $6 million in seed funding led by United Arab Emirates -based Beco Capital . “The opportunity to develop buy now, pay later services in Egypt is huge given the large population of the market,” said Sympl founder and CEO Mohamed El-Feky . “This is a consumer -driven market with a plethora of consumer products and services available online or offline .”

During Black Friday last year , Jumia, an Africa-focused online marketplace, partnered with the National Bank of Egypt and other banking institutions through its Egyptian subsidiary to provide BNPL services to consumers. Its Egyptian CEO Hesham Safwat also said that with Egypt's rising inflation and the pressure it puts on consumer finance , BNPL will continue to flourish in Egypt in the future .

Buy now, pay later

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