Hi there,
Welcome back to In A Giffy—the newsletter by TechCabal Insights that helps you make sense of Africa’s digital economy in a single chart. Please click on display images to view the chart on your mobile device.
In case you missed it, you can read the first edition here where we talked about the growth of ecommerce on the African continent and how to take advantage of it. Today’s newsletter focuses on a fast growing fintech sub-sector, consumer credit aka Buy Now Pay Later.
If you have ideas or feedback, kindly share with us at tcinewsletters@bigcabal.com, we’d love to hear from you.
Now, let’s dive in.
by Mobolaji Adebayo
With an estimated $7.1 billion market size and rising investor interest, Africa’s buy now pay later (BNPL) industry is growing quickly. BNPL’s payment adoption is expected to grow steadily between 2022 and 2028, recording a CAGR of 36.1%.
Similarly, gross merchandise value will increase from $7.4 billion in 2021 to reach $82.9 billion by 2028- over 1000% growth in seven years.
So how can BNPL executives achieve high user growth and maintain low default rates?
BNPL startups are growing rapidly on the continent. Robust KYC processes, data sharing, and a focus on customer experience will determine those who win in the long run.
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