Dublin, Jan. 29, 2026 (GLOBE NEWSWIRE) — The “Africa Buy Now Pay Later Business and Investment Opportunities Databook – 90+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics – Q1 2026 Update” report has been added to ResearchAndMarkets.com’s offering.
The BNPL payment market in Africa is expected to grow by 25.7% on annual basis to reach US$6.5 billion in 2026. The buy now pay later market in the country has experienced robust growth during 2022-2025, achieving a CAGR of 30.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 20.7% from 2026-2031. By the end of 2031, the BNPL sector is projected to expand from its 2025 value of USD 5.2 billion to approximately USD 16.8 billion.
Competitive intensity is expected to consolidate around regulated, well-capitalized players with omnichannel distribution, ecommerce, mobile money and in-store POS. Compliance demands will reduce the number of small BNPL lenders, while telcos, banks and PSPs strengthen their roles through embedded credit. Cross-border expansion in East and North Africa is likely to increase as partnerships scale up.
Current State of the Market
BNPL in Africa operates as a fragmented but increasingly regulated credit segment shaped by ecommerce platforms, mobile-money ecosystems and specialized fintech lenders. South Africa, Kenya, Nigeria and Egypt anchor most activity, each with distinct competitive drivers. In South Africa, BNPL is integrated into established ecommerce and physical retail networks, while in Kenya and Nigeria, mobile money and super app environments influence adoption. Regulatory tightening in Kenya (CBK licensing for credit providers), Nigeria (FCCPC digital lending compliance) and Egypt (FRA fintech licensing) has raised the barriers to entry, shifting competition toward underwriting quality, compliance and distribution partnerships.
Key Players and New Entrants
Regional fintechs such as Payflex (South Africa), Lipa Later and Faraja/EDOMx (Kenya), valU (Egypt), and CredPal (Nigeria) remain central to market development. Ecommerce platforms, including Jumia, increasingly integrate BNPL through partnerships. Mobile-money-led models such as M-PESA Faraja expand access to offline merchants. New entrants remain selective banks and card networks are entering through partnerships rather than full BNPL builds. Mastercard’s multi-market collaboration with Lipa Later and Jumia’s recent partnerships with consumer credit providers illustrate this partnership-led expansion over standalone fintech launches.
Key Trends and Drivers
Platforms scale BNPL at checkout and extend it into stores
- Large ecommerce and retail platforms are embedding BNPL directly at checkout and then extending it into physical stores. In Nigeria, Jumia partnered with Easybuy and CredPal in May 2024 to offer instalment payments at checkout, allowing customers to spread payments while Jumia’s merchants still receive funds upfront. In South Africa, Payflex reports growing adoption among both online and offline retailers, positioning BNPL as a standard option alongside cards and EFT, especially in fashion and electronics.
- E-commerce penetration and digital payment adoption are increasing across markets such as South Africa, Nigeria, Kenya, and Egypt, making checkout integration the most efficient distribution route. Merchants use BNPL to support conversion without bearing credit risk. Providers typically fund the transaction and pay merchants upfront. This is attractive in low-margin retail environments and in markets with volatile consumer incomes. Competitive pressure from other payment methods (cards, mobile money, bank credit) pushes BNPL providers to differentiate on integration depth, time-to-activate, and merchant tools rather than solely on price.
- BNPL is likely to become a default option on major ecommerce platforms in key markets, with a deeper omnichannel rollout across chains in fashion, electronics, grocery, and pharmacies. Merchant bargaining power will increase as platforms integrate multiple BNPL options and traditional credit products, compressing BNPL merchant fees and pushing providers toward value-added services (analytics, loyalty, marketing support). Smaller stand-alone BNPL providers that lack a strong platform or PSP relationships will find it harder to sustain scale and may pivot to niches or partnership-led models.
Mobile money, telcos and device financiers embed BNPL into everyday payments
- BNPL is being embedded into mobile money ecosystems and telecom offerings, pushing it beyond ecommerce into everyday spending and asset access. In Kenya, Safaricom and EDOMx’s Faraja BNPL product allows customers to pay later for purchases at merchants accepting Lipa na M-PESA; merchants receive full payment upfront, while customers repay later. Craft Silicon’s SpotIt and pay-as-you-go models, such as M-Kopa, extend instalment financing to smartphones, solar systems, and other assets, targeting underbanked consumers in Kenya and neighbouring markets.
- Mobile money is widely used in East Africa and parts of West and Central Africa, providing a ready-made channel for credit distribution and repayment. Telcos and device financiers already run large customer bases with detailed usage data, which lowers acquisition and underwriting costs for BNPL-style credit compared with stand-alone fintech apps. Partnerships such as Lipa Later’s collaboration with Mastercard to expand BNPL across Kenya, Uganda, Rwanda and Nigeria aim to leverage global card networks while building on local mobile and merchant ecosystems.
- BNPL features will increasingly be presented as part of “account to pay” or “wallet” experiences, e.g., pay later for airtime, utilities, insurance, and tickets rather than as separate BNPL apps. Telco-led and device-financing models are likely to hold a strong position in East Africa and other mobile-money-heavy markets, especially for lower-ticket items and essential services. Competition between mobile money platforms, banks and fintechs over ownership of the consumer relationship will intensify, with BNPL becoming one of several credit features (alongside overdrafts, nano-loans and micro-savings).
Regulators broaden oversight of digital credit and BNPL providers
- Regulatory bodies across Africa are extending consumer credit and digital lending frameworks to cover BNPL and similar products, focusing on licensing, disclosure and affordability. In Kenya, amendments under the Business Laws (Amendment) Act 2024 mean all non-deposit-taking credit providers, including BNPL providers, must obtain licences from the Central Bank of Kenya, which is tightening oversight of both digital and traditional lenders.
- In Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has introduced DEON digital lending regulations, extending obligations across digital platforms that facilitate unsecured credit, including BNPL-style offers. In Egypt, valU’s digital onboarding at noon marks the first BNPL transaction executed under the Financial Regulatory Authority’s fintech licence, signalling that BNPL is being clearly brought under formal regulatory categories.
- The rapid growth of digital lending and BNPL has raised concerns about over-indebtedness, opaque terms, and debt collection practices. Regulators respond by extending existing consumer credit rules to digital channels. Governments in Nigeria, Kenya, Egypt, and South Africa are trying to deepen formal credit markets while maintaining financial stability, which is driving stricter licensing, reporting, and governance standards for BNPL.
- BNPL providers will increasingly operate under the same or similar rules as other consumer credit institutions, including affordability assessments, standardized disclosures, complaint handling, and data-sharing obligations. Compliance and capital costs are likely to rise, favouring better-funded players and bank-backed models, while smaller or lightly capitalized BNPL fintechs may exit, consolidate or pivot to pure technology-provider roles. The result is a smaller number of licensed, multi-market providers, with clearer risk controls and closer partnerships with banks, insurance firms and credit bureaus.
A bundled offering, combining the following 5 reports, covering 250+ tables and 400+ figures for the Buy Now Pay Later Market:
- Africa Buy Now Pay Later Market Business and Investment Opportunities Databook
- Egypt Buy Now Pay Later Market Business and Investment Opportunities Databook
- Kenya Buy Now Pay Later Market Business and Investment Opportunities Databook
- Nigeria Buy Now Pay Later Market Business and Investment Opportunities Databook
- South Africa Buy Now Pay Later Market Business and Investment Opportunities Databook
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 505 |
| Forecast Period | 2026 – 2031 |
| Estimated Market Value (USD) in 2026 | $6.5 Billion |
| Forecasted Market Value (USD) by 2031 | $16.8 Billion |
| Compound Annual Growth Rate | 20.7% |
| Regions Covered | Africa |
Companies Featured
- valU
- Fawry
- PayMob
- Shahry
- M-Pesa BNPL (Safaricom)
- Tala
- JUMO
- Aspira
- LipaLater
- M-KOPA
- CredPal
- EasyBuy
- Carbon Zero
- Payflex
- PayJustNow
- LayUp
- Mobicred
For more information about this report visit https://www.researchandmarkets.com/r/waosf
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- African Buy Now Pay Later Market
