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South Africa Buy Now Pay Later Market Outlook to 2027F

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

Region:Africa

Author(s):Anuresh Bakshi and Anchal Gupta

Product Code:KR1209

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Published on

October 2022

Total pages

127

Table of Content

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About the Report

About the Report

The report “South Africa Buy Now Pay Later Market Outlook to 2027f– 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 provides a comprehensive analysis of the potential of BNPL Industry in South Africa. The report also covers overview and genesis of the industry, market size in terms of revenue generated; market segmentation by Mode of Payments, by end users, by Age Group of Consumers, by revenue division and by average order value; growth enablers and drivers, challenges and bottlenecks, trends driving adoption of digital innovation; regulatory framework; end user analysis, industry analysis, competitive landscape including competition scenario, market shares of major players present across South Africa. The report concludes with future market projections of each product segmentation and analyst recommendations.


Detailed Analysis on the Buy Now Pay Later Market:
The Buy Now Pay Later industry in South Africa is primarily driven by the need for extra credit line sources to manage the expenses at the time of need fueled by government initiatives to enhance digitalization Buy Now Pay Later Market in South Africa recorded a positive CAGR of more than 50% on the basis of revenue generated in between 2022P and 2027E.

Market Segmentation:

By mode of payment:
Buy Now Pay Later market can be segmented on the basis of mode of payment: online and offline

Covid-19 fuelled the need for online mode of transaction due to adoption of cashless payments which led to the boom of the industry in the country.

By end user:
Buy Now Pay Later market can be segmented on the basis of type of end user: Ecommerce Giants, Physical Retailers, Travel and Entertainment Merchants and Food Aggregators

By age group:
Buy Now Pay Later market can be segmented on the basis of age group: Below 24 years, 24-36 years, 36-50 years and Above 50 years. This is attributed to the increasing working age population which is gradually shifting from credit cards to BNPL as mode of payments.

Competitive Landscape in South Africa BNPL Market:
Thriving partnerships between banks and local BNPL players in the region would enable BNPL players to further position themselves as a trustworthy purchase option among the millenials and gen-z who are prone to rapid behavioural and lifestyle changes. The BNPL market in South RSA is moderately competitive in nature with the presence of 4-6 players operating across the landscape.The market is also witnessing inception of global giants in the industry which can be encapsulated with the recent acquisition of Payflex. TymeBank, Mobicred, PayJustNow and Payflex are some the key players operating in the BNPL landscape of South Africa among others.

Future Outlook and Projections of the Industry
Buy Now Pay Later industry in South Africa is estimated to generate a revenue of USD 1569 Million in 2027E, expanding at a CAGR of double digits in between 2022P and 2027E 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. Retailers as end user will witness upsurge in revenue contribution to 80% of the market share as more retailers will be coming forward to incorporate the BNPL services in their online and offline store to increase consumer base by collaborating with BNPL players.

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
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 BPNL
  • Future Market Size of BNPL in South Africa

Products

Products

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

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 BPNL
  • Future Market Size of BNPL in South Africa


Companies

Companies Covered:

  • TymeBank
  • PAYJUSTNOW
  • Mobicred
  • PayFlex

Table of Contents

Table of Contents

1. Executive Summary

1.1 How is Buy Now Pay Later Industry Positioned in South Africa?

2. Country Overview

2.1 Socio-Economic Outlook of South Africa

2.2 Internet Penetration in South Africa

3. Global Overview of buy Now Pay Later Industry in South Africa

3.1 Overview of Global BNPL Industry

3.2 Presence of BNPL Players Across Globally

3.3 Latest Developments in Global BNPL Landscape

3.4 Disruptors of Credit card Globally

3.5 Case Studies of Leading Global BNPL Providers

4. Market Overview of  Buy Now Pay Later Industry in South Africa

4.1 Overview of South African BNPL Industry

4.2 Key Features and Development in South Africa Buy Now Pay Later Market

4.3 Business Model Canvas for Major BNPL Players in the region

4.4 Market Share and Cross Comparison of Other Modes of Payments in South Africa Buy Now Pay Later Market

4.5 Reasons for Adoption of Buy Now Pay Later Market in South Africa

4.6 Ecosystem of Major Entities in Buy Now Pay Later Industry in South Africa

4.7 How a Buy Now Pay Later Transaction Happens

5. Market Size of Buy Now Pay Later Industry in South Africa

5.1 Market Size of Buy Now Pay Later in South Africa on the basis of Revenue, 2019-2022

5.2 Market Size of Buy Now Pay Later in South Africa on the basis of Number of Transactions, 2019-2022

5.3 Market Size of Buy Now Pay Later in South Africa  on the basis of Average Order Value, 2019-2022

6. Market Segmentation of Buy Now Pay Later Industry in South Africa

6.1 Market Segmentation by Mode of Payments, 2022

6.2 Market Segmentation by Type of End User, 2022

6.3 Market Segmentation By Age Group of Consumers, 2022

7. Industry Analysis

7.1 Growth Drivers of South Africa  Buy Now Pay Later Market

7.2 Porter’s Five Force Analysis of the South Africa  Buy Now Pay Later Market

7.3 Trends and Developments in South Africa  Buy Now Pay Later Market

7.4 Issues and Challenges in the South Africa  Buy Now Pay Later Market

7.5 SWOT Analysis of South Africa Buy Now Pay Later Market

7.6 Role of Government and Regulations in the South African Buy Now Pay Later Industry

7.7 Risks Involved in Business Operations in the South African Buy Now Pay Later Industry

7.8 Recent Mergers and Acquisitions in the South African Buy Now Pay Later Industry

7.9 Impact of COVID-19

8. Demand Analysis

8.1 Adoption Rationale of Consumers towards Buy Now Pay Later Services

8.2 Cross Comparison of BNPL players on major decision making parameters for brand preference

8.3 Consumer Persona Analysis

9. Competitive Analysis

9.1 Investment Analysis of Major Players in the BNPL Space from 2016 to 2021

9.2 Detailed Investment Analysis of Major Players in the BNPL Space from 2019 to 2022

9.3 Company Profile of TymeBank

9.4 Company Profile of Mobicred

9.5 Company Profile of PayJustNow

9.6 Company Profile of Payflex

10. Future Outlook and Projections of the Industry, till 2027

10.1 Future Market Size of Buy Now Pay Later in South Africa on the basis of Revenue, 2022-2027E

10.2 Future Market Size of Buy Now Pay Later in South Africa on the basis of Number of Transactions, 2022-2027E

10.3 Future Market Size of Buy Now Pay Later in South Africa on the basis of Average Order Value, 2022-2027E

10.4 Future Market Segmentation by Mode of Payments, 2022-2027E

10.5 Future Market Segmentation by Type of End User, 2022-2027E

10.6 Future Market Segmentation by Age Group of Consumers, 2022-2027E

11. Analyst Recommendations

12. Industry Speaks

13. Research Methodology

13.1 Market Definitions and Assumptions

13.2 Abbreviations

13.3 Market Sizing Approach

13.4 Consolidated Research Approach

13.5 Understanding Market Potential Through In-Depth Industry Interviews

13.6 Limitations and Future Conclusion

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