DUBLIN, Nov. 2, 2022 /PRNewswire/ — The “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 – Q3 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
According to the publisher, BNPL payments in the country are expected to grow by 70.4% on an annual basis to reach US$810.4 million in 2022.
Medium to long term growth story of BNPL industry in South Africa remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 35.5% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$475.5 million in 2021 to reach US$5,013.8 million by 2028.
The buy now pay later (BNPL) industry is a fast-growing segment in South Africaas consumers increasingly seek ways to manage their tight budgets. Amid the growing consumer demand, the payment method has become the preferred option among merchants, driving the BNPL transaction value and volume.
Over the last few years, several domestic players have launched BNPL products in South Africaincluding Payflex, Tyme Bankand PayJustNow. With thousands of merchants offering these BNPL solutions, the product’s penetration is expected to record strong growth over the next three to four years.
Globally, there has been a high degree of mergers and acquisition activities in the space, and the trends are similar in South Africa.In September 2021Payflex was acquired by Australia-based BNPL firm Zip, while in February 2022Homechoice acquired PayJustNow. Amid the growing BNPL market across the African region, foreign players are also considering expansion in the continent, including in South Africa.
This trend is expected to drive more investment in the South African BNPL market over the next three to four years, which will subsequently drive innovation and competition in the sector from the short to medium-term perspective.
South African consumers prefer and recommend BNPL services over regular banking services
The growth of the BNPL market can be estimated by the rising adoption and usage of BNPL services among consumers. In South Africamore and more consumers are using the services while also recommending them over regular banking options. For instance,
- A May 2022 report from Payflex, one of the leading BNPL providers in South Africarevealed that South African consumers prefer and recommend BNPL services over regular banking services. The survey of 7,300 …