The gross value of goods bought now and paid later in Egypt is expected to reach $6.5 billion by 2028

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Dublin, Oct. 17, 2022 (GLOBE NEWSWIRE) — The “Egypt Buy Now Pay Later Business and Investment Opportunities Databook – 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” has been added to from ResearchAndMarkets.com offer.

According to the publisher, BNPL payments in the country are expected to increase by 93.6% on an annual basis to reach $875.4 million in 2022.

The medium to long term growth story of the BNPL industry in Egypt remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, registering a CAGR of 39.7% during 2022-2028. BNPL’s gross merchandise value in the country will increase from US$452.1 million in 2021 to US$6,515.9 million by 2028.

In the Middle East and Africa (MEA) region, the adoption of digital payments has steadily increased over the past few years, largely due to the global pandemic outbreak. In Egypt, the trends are similar, where more and more consumers are using digital payment methods, such as buy-it-now, pay-later (BNPL), to make purchases in-store and online in the country.

During the global pandemic outbreak, an increasing number of Egyptians flocked to online shopping platforms, which contributed to the adoption of BNPL services and increased transaction volume for vendors. As online shopping continues to grow in Egypt, the trend is expected to accelerate further; as a result, the publisher expects more e-commerce marketplaces to launch BNPL services for their customers in Egypt.

Along with the growth of the B2C sector, BNPL is also expected to make inroads in the B2B space in the short to medium term in Egypt. This will further increase the value and volume of BNPL transactions in the country over the next three to four years, thereby boosting the growth of the entire industry.

Global e-commerce marketplaces launch BNPL services for online shoppers in Egypt

Amid growing demand for BNPL among online shoppers in Egypt, global e-commerce marketplaces are launching deferred payment services for online shoppers in the country. For instance,

  • In July 2022, Amazon, one of the world’s leading e-commerce platforms, announced the launch of the BNPL payment option for its customers in Egypt. To launch the service, the company entered into a strategic collaboration with valU, BNPL’s main provider in Egypt.

  • The launch of the BNPL payment option by Amazon testifies to the growing demand for deferred payment methods among online shoppers in Egypt. The BNPL option allows customers to choose an installment plan, ranging from 6 to 60 months, without any down payment.

The publisher expects more online retailers to launch BNPL services in Egypt as consumers continue to shop from retailers that offer a deferred payment option in the country.

Innovative BNPL startups use artificial intelligence to assess the credibility of SMEs in the B2B sector in Egypt

After gaining rapid success in the B2C sector, companies are now targeting the B2B market to enter the Egyptian BNPL market. These startups are doing artificial intelligence to provide financial solutions to small and medium enterprises in Egypt. For instance,

  • In June 2022, Hollydesk, a Cairo-based Fintech company, announced the launch of its BNPL service for small and medium-sized enterprises (SMEs) in Egypt. In particular, the BNPL service allows SMEs to pay suppliers over a period of 30 to 90 days. The company uses artificial intelligence (AI) rather than traditional credit reports to assess potential BNPL borrowers. According to the firm, Hollydesk expects 500 million EGP in transactions in 2023.

As demand for BNPL continues to grow in the Egyptian B2B space, the publisher expects more companies to enter the sector in the short to medium term. This will further support the growth of the entire Egyptian BNPL industry over the next three to four years.

BNPL companies raise funding round from regional investors to expand presence in MEA

In the Middle East and Africa (MEA) region, the BNPL market recorded strong growth amid rising consumer and merchant demand. Hence, companies are looking to expand their presence in the MEA region and as a result, companies are entering into strategic investment partnerships with regional investors. For instance,

  • In June 2022, valU announced that the company had raised US$12.4 million in a strategic investment round from a Saudi Arabia-based Alhokair family. Notably, the Alhokair family raised a 4.99% stake in the Egyptian company BNPL against an investment of $12.4 million. The funding round valued the company at US$247.4 million. This round of strategic investment should help the company further strengthen its position in the MEA region.

The publisher expects more domestic BNPL companies to raise these strategic investments from regional and global investors as they plan to further strengthen their position in the global BNPL industry.

Scope

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

Market size and spending pattern of BNPL in Egypt

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Egypt 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

Egypt Buy Now Pay Later Market Share Analysis by Key Players

  • (Shahry, valU, Fawry, Valeo, Sympl)

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

  • online channel

  • POS channel

Egypt 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

Egypt 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

Egypt 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

Egypt 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

Egypt Buy Now Pay Later in Other Countries: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Egypt 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

Reasons to buy

  • In-depth understanding of Buy Now Pay Later market dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics with essential KPIs such as gross commodity value, volume, and average value per trade.

  • Overview of Opportunities by End-Use Sectors – Obtain market dynamics by end-use sectors to assess emerging opportunities in various end-use sectors.

  • Develop market-specific strategies: identify growth segments and target specific opportunities to formulate BNPL’s strategy; assess key market-specific trends, drivers, and risks in the BNPL industry.

  • Gain insights into consumer attitude and behavior: Drawing on proprietary survey results, this report identifies and interprets key Buy Now, Pay Later KPIs, including spend by age, gender and income level.

  • Market share by key players

For more information about this report visit https://www.researchandmarkets.com/r/4qbrat

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