The growth of Africa’s BNPL market is largely driven by its seamless integration into e-commerce platforms as an appealing alternative to traditional payment methods, along with its expanding use in sectors like healthcare and education financing.

The Buy Now, Pay Later (BNPL) market in Africa is expected to grow at an average annual rate of 14.8% between 2025 and 2030, reaching a total value of about $10.63 billion by the end of the ongoing decade. This projection comes from a report published on February 19 by market research firm Research and Markets.

Titled "Africa Buy Now Pay Later Business and Investment Opportunities Databook," the report highlights that BNPL has already experienced rapid expansion, with an average annual growth rate of 29.4% between 2021 and 2024. By the end of 2024, the market had reached $4.48 billion.

The sector's rapid growth is largely driven by the increasing integration of BNPL solutions into e-commerce platforms looking to attract more customers and boost sales. By allowing payments to be spread out over time, BNPL has changed African shopping habits, encouraging consumers to buy more expensive and higher-quality products.

In May 2024, Jumia Nigeria partnered with local companies Easybuy and CredPal to offer BNPL options, enhancing the online shopping experience and allowing consumers to make purchases without paying the full amount upfront. Meanwhile, South Africa’s Payflex has expanded its partnerships with both online and offline retailers in recent years.

Strategic partnerships between BNPL providers and payment companies have also made deferred payment solutions more accessible across the continent. In August 2023, U.S. payments giant Mastercard teamed up with Kenyan fintech Lipa Later to introduce BNPL solutions in Kenya, Rwanda, Uganda, and Nigeria, aiming to boost financial inclusion.

The interest-free installment model, which helps consumers avoid traditional debt, has also gained traction in sectors beyond retail. Responding to strong demand, Lipa Later has expanded its services to include healthcare and education financing in Kenya, Uganda, and Rwanda.

New players in the market are targeting high-potential niches such as education and small business financing, aiming to stand out with tailored services.

As Africa’s BNPL market becomes increasingly competitive, the report notes that regional and international players investing in technology, innovation, and partnerships will be best positioned to capitalize on emerging opportunities. Investments in artificial intelligence (AI) for better credit risk assessment and customer insights will provide a significant competitive edge.

As the sector matures, market consolidation through mergers and acquisitions could take place as companies seek economies of scale. This trend will unfold in a rapidly evolving regulatory environment, shaping the future of BNPL in Africa.