The Covid-19 pandemic is a catalyst in exhilarating and paving way for newer companies to enter the BNPL space in the country coupled with external investments made in the industry: Ken Research

No Interest Credit Payments: One of the major reason as to why BNPL is a robust mechanism inside South Africa is due to the fact that customers are allowed to pay the money in three equal instalments with no interest fee. Although, there is a carry forward fee in case the shopper misses the payment deadline, it still is almost negligible making the industry quite lucrative in a region with less per capita income. With a population of ~61 million and USD ~426 Bn GDP as of 2022, South Africa's economy has been growing at a CAGR of 4.7% during 2016 and 2022.

Disruption Penetrated by COVID-19 Pandemic: The South Africa BNPL market boomed during COVID-19 pandemic as huge chunk of the residents lost their jobs during this period and were surviving on their savings and this push forwarded the need for extra credit line which was catered by the BNPL services. Providers such as PayFlex and PayJust Now are making robust efforts to sustain the rising interest in consumer credit financing.

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Lack of Awareness in the Consumer Segment: Inception of digital payments is still comparatively new in the African market and thus rural consumer segments find themselves being unaware of the latest trends in the BNPL industry. This when coupled with the digital divide in the urban-rural setting is a massive challenge for merchants and BNPL players in South Africa due to lack of means of financial awareness in the country.

South African National Payments System: The South African National Payments System (NPS) was launched in November, 1995 and it was a collaborative effort between South African Reserve Bank and the banking industry. The strategy it envisioned encompasses fundamental principles and critical success factors for reforms in the domestic payment mechanism in the Republic of South Africa. All cards issuing, acquiring and acceptance services must be in compliance with South African legislation. The directive aims to address transactions occurring within South Africa between domestic parties, where such transactions are processed as if they were cross-border transactions as a result of involvement of a foreign card issuer.

Analysts at Ken Research in their latest publication "South Africa Buy Now Pay Later Market Outlook to 2027 - Driven by digitalization, government support, increasing working age population, with upsurge in Gen-Z & millennials population coupled with shifting preference towards easy interest free extra credit line sources" by Ken Research observed that increasing adoption of cashless society with emergence of digital payments fueled by surging working age class will drive the traction of BNPL industry among the users in South Africa. Increasing demand for extra credit line with less stringent KYC procedures without relying on CIBIL scores will be traction for consumers for utilization of BNPL services. Buy Now Pay Later industry in South Africa is expanding at a CAGR of 35.1% in between 2022P and 2027E.

For More Information on the research report, refer to below link: -
https://www.kenresearch.com/banking-financial-services-and-insurance/banking/south-africa-buy-now-pay-later-market-outlook-to-2027/596049-93.html

Key Segments Covered: -
South Africa BNPL Market
By mode of payment (by Revenue) 2022 and 2027:
Online
Offline

By End Users (by Revenue) 2022 and 2027:
Retailers
Food Merchants
Travel Merchants

By Age Group of Users (by Revenue) 2022 and 2027:
Below 20 years
20-40 years
Above 40 years

Key Target Audience:
Bankers and associations
Government associations
Corporates
Investment firms
Government Bodies & Regulating Authorities
Fintech companies
Venture capitalists

Time Period Captured in the Report:
Historical Year: 2019-2021
Base Year: 2022
Forecast Period: 2023- 2027F

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Companies Covered:
TymeBank
PAYJUSTNOW
Mobicred
PayFlex

Key Topics Covered in the Report:
BNPL Industry positioning
Socio demographic Outlook of South Africa
Presence of Global BNPL Players
Trends of BPNL Industry
Market size of BPNL
BNPL transaction process
Key Features and developments in South Africa BPNL
SWOT Analysis of South Africa BNPL
Issues and Challenges in South Africa BNPL
Investment Analysis of players in BNPL Space
Role of Government and regulations in South Africa BNPL
Porter's Five force Analysis in South Africa BPNL7
Future Market Size of BNPL

Related Reports by Ken Research: -
https://www.kenresearch.com/banking-financial-services-and-insurance/banking/ksa-buy-now-pay-later-market-outlook-to-2027/596046-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/india-buy-now-pay-later-market-outlook-to-2026/515064-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/uae-buy-now-pay-later-industry-outlook-to-2027/588867-93.html

Contact Us: -
Ken Research
Support@kenresearch.com
+91-9015378249

Ken Research Pvt. Ltd.

Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.

This release was published on openPR.