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South Africa Buy Now, Pay Later Boom: $5.7 Billion Growth by 2027 Fueled by Credit Access & E-commerce Surge: Ken Research

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GURUGRAM, India, Feb. 19, 2024 /PRNewswire/ — South Africa’s Buy Now, Pay Later (BNPL) market is experiencing rapid growth, fueled by the increasing demand for flexible credit options and the booming e-commerce sector. Ken Research’s “South Africa Buy Now, Pay Later Market” report predicts a remarkable 14.8% CAGR, translating to a substantial $5.7 billion market size by 2027. This press release unpacks the key drivers, challenges, and exciting prospects shaping this dynamic landscape. 

 

Market Overview: Empowering Consumers, Boosting Retail 

Beyond simply offering delayed payments, BNPL services play a crucial role in expanding financial inclusion, making online shopping more accessible, and stimulating economic growth. In 2022, the market reached a size of $1.7 billion, and it’s on track for significant expansion, driven by: 

  • Limited Access to Traditional Credit: Restrictive access to credit cards and high interest rates make BNPL a viable alternative for many consumers. 
  • E-commerce Explosion: Rising internet penetration and mobile adoption fuel online shopping, creating a strong demand for BNPL solutions. 
  • Convenience & Affordability: Easy online application processes and manageable payment installments enhance consumer appeal. 
  • Merchant Benefits: Increased sales volumes and reduced cart abandonment rates benefit retailers adopting BNPL options. 

Interested to Know More about this Report, Request a Free Sample Report

Market Segmentation: Diverse Solutions, Tailored Needs 

The report delves into various segments of the South African BNPL market, offering a comprehensive view: 

  • Payment Cycle: Interest-free options within 3-6 months dominate (70%), followed by longer installment plans with interest (20%) and point-of-sale financing (10%). 
  • Industry: Retail & e-commerce leads the demand (60%), followed by travel & tourism (20%) and education (10%). BNPL caters to diverse purchase needs. 
  • Player Type: Established financial institutions hold the largest share (50%), followed by fintech startups (40%) and mobile network operators (10%). Players offer varying value propositions. 

Competitive Landscape: Local & Global Players Collaborate 

The market features a blend of established local players, global giants, and innovative startups: 

  • Local Champions: PayJustNow, Payflexi, and Mobi Credit cater to the local market with flexible solutions and partnerships with retailers. 
  • Global Titans: Klarna, Afterpay, and PayPal offer international expertise and diverse product offerings. 
  • Emerging Challengers: Fintech startups like Lamna and Easy Equities disrupt the market with innovative technologies and niche offerings. 

Challenges: Navigating the Road to Responsible Growth 

Despite the promising outlook, some challenges need to be addressed: 

  • Regulatory Framework: Lack of specific regulations for BNPL services can raise concerns about over-indebtedness and consumer protection. 
  • Data Security & Privacy: Protecting sensitive consumer data and ensuring responsible data practices are crucial for long-term trust. 
  • Financial Literacy: Educating consumers about responsible BNPL usage and potential risks is essential to avoid financial distress. 
  • Competition & Sustainability: Intense competition can lead to aggressive marketing practices and unsustainable business models. 

Visit this Link :- Request for custom report

Future Outlook: A Secure, Responsible, and Inclusive BNPL Ecosystem 

The South African BNPL market is poised for continued growth, driven by several exciting factors: 

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  • Focus on Financial Inclusion: Partnerships with microfinance institutions and targeted offerings can expand access to BNPL for underserved communities. 
  • Technological Advancements: Integration with artificial intelligence and data analytics will enhance risk assessment and personalize consumer experiences. 
  • Regulatory Clarity: Establishment of clear regulations will promote responsible lending practices and build consumer confidence. 
  • Collaboration & Innovation: Partnerships between stakeholders will foster responsible growth, address challenges, and drive innovation. 

Key Takeaways for Stakeholders: 

This report offers valuable insights for various stakeholders in the South African BNPL market, including: 

  • BNPL Providers: Focusing on responsible lending practices, data security, and financial literacy initiatives. 
  • Investors: Identifying high-growth opportunities in segments like BNPL for underserved communities and innovative technologies. 
  • Retailers: Partnering with reliable BNPL providers, integrating seamless BNPL options, and ensuring transparency. 
  • Regulators: Developing clear and balanced regulations that protect consumers and promote responsible market growth. 
  • Consumers: Understanding the terms and conditions of BNPL options, using them responsibly, and seeking financial advice if needed. 

Request free 30 minutes analyst call

Conclusion: 

South Africa’s BNPL market stands on the cusp of a transformative journey, offering immense potential for financial inclusion, e-commerce growth, and economic development.

For More Insights On Market Intelligence, Refer To The Link Below: –

South Africa Buy Now Pay Later Market

Related Reports by Ken Research: –

Malaysia Buy Now Pay Later Market Outlook to 2027F Driven by Digitalization, Rising Tech-Savvy Population, Increasing M&A Deals, Partnerships between BNPL players and Banks along with shifting preference towards BNPL

According to Ken Research estimates, the Malaysia BNPL Market – which grew from approximately USD ~140 Mn in 2019 to approximately USD ~560 Mn in 2022 – is forecasted to grow further into USD ~2700 Mn opportunity by 2027F, owing to the New Government Policies, New Players in the Market and Partnership with Companies.

KSA Buy Now Pay Later Market Outlook to 2027 Driven by digitalization, government support as a part of Saudi vision 2030 increasing Genz & millennials population due to influx of expatriates coupled with shifting preference towards easy interest free extra credit line sources

The KSA BNPL marketis estimated to expand at a CAGR of ~xx% in between 2022P and 2027E on the basis of number of transactions done. Increasing adoption of cashless society with emergence of digital payments fueled by surging working age class will derive the traction of BNPL industry among the users in KSA 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.

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UAE Buy Now Pay Later Industry Outlook to 2027 Driven by adoption of cashless society, increasing Genz & millennials population coupled with shifting preference towards easy interest free extra credit line sources

UAE BNPL market is expected to expand with a single digit CAGR in between 2022 and 2027 on the basis of revenue generated. It is anticipated that BNPL industry will grow at a substantial rate owing to factors such as due to wider acceptability at shops and better product offerings in a competitive landscape in the coming years. UAE has been culturally conservative towards BNPL and it is always seen as a debt trap instrument.

US Micro Lending Market Outlook to 2028 Segmented by Product (Micro-credit/ Micro-loans, Micro-savings, Micro-Insurance, and Remittances and Money Transfer), By End-User (Small enterprises, Solo entrepreneurs & self-employed, Farmers & Agriculture workers, and Healthcare Recipients)

The US Micro Lending market is expected to grow at a CAGR of 12 % from 2022 to 2028 with low-interest Rates, Ease of Access, Technological Advancements, flexible repayment schedules, and Alternative credit score models. As the market is anticipated to grow remarkably in the forecasted period thus the demand for microloans will also increase significantly.

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Contact Us:-
Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
[email protected]
+91-9015378249

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Hinojosa obtains a new EcoVadis gold medal with a score greater than 97% of the companies evaluated

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  • The company has certified the sustainability of its business management with EcoVadis, receiving the third consecutive gold medal
  • With 78 points out of 100, Hinojosa has received its best score to date, mostly due to improvements in key areas such as environment, labour practices and human rights

VALENCIA, Spain, Nov. 26, 2024 /PRNewswire/ — Hinojosa Packaging Group has been awarded the EcoVadis gold medal for the third consecutive year, achieving with 78 points out of 100 its highest score to date and being placed in the 97th percentile of the best rated companies. The company has experienced sustained growth since has started in 2020 to certify management and positive impact on sustainability, within this internationally recognised platform.

The EcoVadis evaluation covers a wide range of non-financial management systems, including impact on issues such as environment, labour practices and human rights, ethics and sustainable procurement. Both in environmental area and labour practices & human rights’ area, the company has improved its previous scores by 10 points, reaching, respectively, 90 and 80. Progress in these two areas has enabled Hinojosa to further improve this year the overall score and position itself in the top 3% of all companies.

The improvement in the environmental area is due, among other things, to the validation of the emissions reduction targets and to achieving the Net-Zero Standard in 2050, as part of the SBTi (Science Based Target initiative). Some of the company’s commitments in this area include achieving a 60% reduction in Scope 1 and 2 emissions and a 42% reduction in Scope 3 emissions by 2030, in addition to using 100% of its electricity from renewable sources.

Adding to these commitments to the future, Hinojosa continues to work on a daily basis to ensure that its constant, steady and sustainable growth is guaranteed accordingly to circular economy’s principle. During 2023, the company reduced emissions by 16% compared to the previous year. This outstanding reduction of carbon footprint was also followed by a waste recovery rate over 95% and a 7% increase in the energy used for production from renewable sources, reaching 71% of the total energy used.

Hinojosa’s efforts to generate a positive impact in labour practices and human rights has also been recognised by EcoVadis. The expansion and consolidation of its FP Dual program or the creation of Hinojosa Cathedra together with Universitat Politècnica de València are some of the most relevant initiatives. In addition, the commitment of all company’s employees to comply with the MSH (Hinojosa Safety Model) has led to an almost fifty percent reduction in global occupational injuries.

EcoVadis corporate sustainability ratings assess each company based on its size, location and business area. More than 90,000 companies are rated internationally, receiving scores between 0 and 100 and in case their performance excels, EcoVadis will grant medals. After winning a bronze medal in 2020 and a silver medal in 2021, Hinojosa has now three consecutive gold medals in 2022, 2023 and 2024. Furthermore, thanks to this assessment, the company has received guidance on its strengths and 22 areas for improvement, which allows Hinojosa to focus on sustainability efforts and to develop action plans to improve performance.

About Hinojosa Packaging Group

Hinojosa is a leading company in the design and manufacture of sustainable packaging solutions. With more than 75 years of history, its model is based on the principles of the circular economy.

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Thanks to permanent innovation, customer orientation and the pursuit of excellence, the Group has continued to grow, experiencing a significant boost in recent years with its commitment to internationalisation. Today it has 2900 employees and 24 production plants located in Spain, Portugal, France and Italy, combining the strength of a global group with proximity to the territory.

Hinojosa’s commitment – and performance – is to generate a positive impact where it operates, contributing to a greater common well-being. Because it is not only about making the best packaging, but taking care of everything around you.

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FITUR 2025 Promotes Pride in Tourism, a Key Industry for Sustainable Social and Economic Development

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Organised by IFEMA MADRID, the International Tourism Trade Fair will be held from January 22 to 26, 2025 with a firm commitment to boosting business and knowledge exchange.

In its 45th edition, FITUR aligns itself with the global challenges of tourism, placing sustainability at the heart of its agenda in order to contribute to solid economic growth.

MADRID, Nov. 26, 2024 /PRNewswire/ — Tourism has reached 790 million international tourists, generating a direct global economic impact of approximately USD 3.4 trillion in the first seven months of 2024, according to UN Tourism statistics. Given this magnitude, the International Tourism Trade Fair, which closed its last edition with more than 250,000 attendees and the participation of 9,000 companies representing 152 countries, aligns itself with the global challenge facing the industry and reinforces its commitment to the promotion of responsible tourism, inviting its professionals to strengthen their pride of belonging.

FITUR, which is holding its next edition from 22 to 26 January, organised by IFEMA MADRID, brings together the global tourism market, placing sustainability at the centre of its programme with the aim of contributing to solid economic growth and showcasing respectful practices with a positive impact that can be replicated to continue improving the quality of tourism activity.

This is precisely the aim of two of its major projects. On the one hand, the FITURNEXT Observatory, FITUR’s platform dedicated to promoting best practices, which has been working all year over the past six editions to identify and analyse initiatives implemented globally by destinations, companies and organisations around an industry challenge. On this occasion, the 2025 Challenge focused on how tourism can contribute to sustainable food management and, after the analysis of nearly 300 proposals, the winners are Sustainable Gastronomic Routes of Extremadura (Spain), Hurtigruten Cruises (Norway) and Too Good To Go (Denmark).

On the other hand, FITUR 4all, the space that for the second consecutive year brings all people with accessibility needs closer to tourist destinations and services in order to promote inclusive tourism. This project, in addition to awarding the best initiatives, will be producing the first Guide to Best Practices in Accessibility in 2025 to encourage commitment to the development and promotion of inclusive tourism worldwide.

Tourism, a lever for economic and social growth with great responsibility

In addition to the purpose of inspiring professionals to adopt sustainable practices that contribute to the protection of nature and local communities, as well as promoting responsible participation in the Fair, FITUR 2025 also aims to increase its professionals’ pride in belonging to a crucial sector that generates a positive impact on economic and social development.  In this context, the entire tourism value chain contributes to the generation of employment, the preservation of cultural diversity and historical heritage, the stimulation of investment in infrastructures and services and the promotion of a sustainable development model. Being part of this industry means being at the heart of an activity that, beyond its contribution to economies, creates spaces for exchange and respect, contributing to understanding between cultures, global cooperation and progress.

Therefore, under the slogan -Orgulllosos. Somos turismo’ (Proud. We are tourism), calls on all participants and visitors to participate in this transformation towards a more responsible tourism that brings real and lasting value to the planet and to people.

For more information about FITUR, click HERE

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SM Investments Receives Dual Accolades for Corporate Excellence and Sustainability

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PASAY CITY, PHILIPPINES, Nov. 26, 2024 /PRNewswire/ — SM Investments Corporation (SM Investments) was recently recognized at the Asia Corporate Excellence and Sustainability Awards 2024 (ACES), earning the titles of Asia’s Most Influential Companies and Top Sustainability Advocates in Asia.

“We are grateful for the recognition and are inspired to continue to work even harder to grow responsibly and sustainably with the communities that we serve,” said Frederic C. DyBuncio, President and Chief Executive Officer of SM Investments.

The ACES Council praised SM Investments for its comprehensive approach to sustainability, which is embedded in all aspects of its operations. They noted, “Their influence extends beyond business operations, as they set benchmarks for sustainability in the Philippines and across Asia. By building integrated communities, fostering partnerships with MSMEs, and prioritizing corporate governance, SM Investments exemplifies leadership that positively impacts not just its stakeholders, but the broader socio-economic landscape.”

The council also highlighted SM Investments’ commitment to renewable energy and its focus on diversity and inclusion within its workforce. The company operates the Philippine Geothermal Production Company, which runs geothermal fields in Tiwi, Albay, and Makban, Quezon, while exploring additional sources across six provinces.

With a workforce exceeding 130,000, SM Investments is notable for its gender diversity, with 63% of its employees being women, and 58% of leadership roles filled by women.

Established in 2014, the ACES Awards aim to showcase the achievements of Asian companies to the global business community, supported by a council of experts in academia, sustainability, and public policy.

About SM Investments Corporation

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.

For more information, please visit www.sminvestments.com

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