Tuesday
July 12
2022

As Costs Rise, Buy Now Pay Later Plans Are Increasingly Attractive in Africa

By Conrad Onyango

Short-term financing that allows consumers to make purchases and pay for them at a future date is gaining popularity in Africa as rising costs of living push digital-savvy shoppers to spread the costs of their big-ticket purchases.

Buy Now, Pay Later (BNPL) installments plans are attractive. They are also, often, interest-free, promising to be an alternative payment method for everyday purchases and to the high cost of credit that faces many unbanked Africans and comes with tough checks.

According to Research and Markets Q4 2021 BNPL Survey, this innovative payment industry has recorded strong growth over the last year, and is projected to hit $7.2 billion by the close of 2022, for Africa and Middle East Markets.

This growth, the research firm said is, “supported by increased e-commerce penetration along with impact of economic slowdown due to disruption caused by covid-19 outbreak.”

Photo courtesy of Angelo Moleele.

Source: Quartz Africa (link opens in a new window)

Categories
Finance, Technology
Tags
digitalization, economic, finance, financial inclusion, financial services, fintech