Gross Value of South African Buy Now Pay Later Commodities Expected to Hit $5 Billion by 2028 – ResearchAndMarkets.com

DUBLIN–()–The “Buy Now Pay Later Business & Investment Opportunities in South Africa – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Product Dynamics Retail Sales and Consumer Demographics – Q3 2022 Update” report has been added to from ResearchAndMarkets.com offer.

According to the publisher, BNPL payments in the country are expected to increase by 70.4% on an annual basis to reach $810.4 million in 2022.

Companies cited

  • payflex

  • Pay now

  • TymeBank

  • Mobicred

The medium to long term growth story of the BNPL industry in South Africa remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, registering a CAGR of 35.5% during 2022-2028. BNPL’s gross merchandise value in the country will increase from US$475.5 million in 2021 to US$5,013.8 million by 2028.

The buy it now, pay later (BNPL) industry is a fast growing segment in South Africa as consumers increasingly look for ways to manage their tight budgets. Amid growing consumer demand, the payment method has become the preferred option for merchants, driving BNPL transaction value and volume.

In recent years, several national players have launched BNPL products in South Africa, including Payflex, Tyme Bank and PayJustNow. With thousands of merchants offering these BNPL solutions, product penetration is expected to see strong growth over the next three to four years.

Globally, there has been a high degree of M&A activity in the space, and the trends are similar in South Africa. In September 2021 Payflex was acquired by Australian company BNPL Zip, while in February 2022 Homechoice acquired PayJustNow. Amid the growing BNPL market in the African region, foreign players are also eyeing expansion in the continent, especially in South Africa.

This trend is expected to drive more investment into the South African BNPL market over the next three to four years, which will subsequently drive innovation and competition in the industry in the short to medium term.

South African consumers prefer and recommend BNPL services over traditional banking services

The growth of the BNPL market can be estimated by the increasing adoption and usage of BNPL services by consumers. In South Africa, more and more consumers are using the services while recommending them over the usual banking options.

Companies enter into strategic alliances to offer BNPL payment options in different product categories

In South Africa, consumers are demanding the availability of the flexible payment option at more merchants, which can provide them with greater choice when making specific purchases. Therefore, BNPL players enter into strategic alliances with traders in the country.

BNPL Suppliers Target B2B Segment to Drive Next Phase of Growth in South Africa

Globally, BNPL vendors are targeting the B2B segment to drive the next phase of growth after gaining popularity among consumers over the past two years. Similar trends are visible in South Africa, where BNPL suppliers are targeting the B2B segment in 2022.

Scope

This report provides an in-depth, data-driven analysis of the Buy Now, Pay Later industry in South Africa. Below is a summary of the main market segments:

South Africa BNPL Market Size and Spending Pattern

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

South Africa Buy Now Pay Later Operational KPIs

  • Revenue from buy-it-now and pay-later, 2019 – 2028

  • Buy Now Pay Later Share by Revenue Segments

  • Buy Now Pay Later Merchant Commission, 2019 – 2028

  • Buy now, pay later, missed payment fee revenue, 2019 – 2028

  • Buy Now Pay Later Pay Now and Other Revenues, 2019 – 2028

  • Accounts Buy Now Pay Later, 2019 – 2028

  • Buy Now Pay Bad Debt Later, 2019 – 2028

South Africa Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • online channel

  • POS channel

South Africa Buy Now, Pay Later in Retail: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

South Africa Buy Now Pay Later in Home Improvement: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

South Africa Buy Now, Pay Later in Leisure and Entertainment: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

South Africa Buy Now, Pay Later in Healthcare and Wellbeing: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

South Africa Buy Now Pay Later in Other: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

South Africa Buy Now Pay Later Analysis by Consumer Attitude and Behavior

  • Buy now, pay later Increased sales by product category

  • Buy now Pay later Split spend by age group

  • Buy now, pay later Share of gross merchandise by revenue

  • Buy now, pay later Share of gross value of goods by gender

  • Buy Now Pay Later Rationale for Adoption Gross Goods Value Analysis

For more information on this report, visit https://www.researchandmarkets.com/r/t3h30z