5 BNPL providers boosting financial inclusion in Africa

By Gloria Methri

Buy Now, Pay Later, or BNPL is revolutionising the way customers make purchases online and even in-store by making payments more flexible and convenient for shoppers. BNPL allows customers to divide payments into installments with companies.

The use of BNPL services is on the rise in Africa, driven by a significant portion of the population lacking access to adequate financial services, increased e-commerce activity, and challenging economic conditions. In South Africa alone, more than 27 million people are either unserved or underserved by traditional credit options, with 38% of credit users behind on their payments.

BNPL is emerging as a viable alternative to high-interest loans from conventional lenders. Projections suggest that BNPL payments in Africa will grow to $15.5 billion by 2024, with the gross merchandise value expected to hit $19.5 billion by 2029.

Let’s look at five BNPL providers providing financial freedom to consumers in Africa.

• Julla

Julla is a Kenyan-based BNPL service designed to cater to the underbanked population. Founded in 2019, Julla allows consumers to shop for items and pay later in installments, without needing a credit card. It focuses on offering microcredit solutions to shoppers and is making waves in Kenya’s e-commerce ecosystem. Julla’s quick onboarding process and minimal credit checks make it accessible to many, providing an alternative to traditional credit models.

• LayUp

LayUp is another South African BNPL player that focuses on making payments easier for consumers. Launched in 2019, the company allows customers to make interest-free installment payments, giving them greater control over their finances. LayUp has gained popularity by integrating its service into businesses across multiple sectors, including healthcare, education, and retail. It stands out for its focus on helping people manage larger, often essential purchases, making financial flexibility accessible for more critical needs beyond just consumer goods.

• Motito

Based in Ghana, Motito is a BNPL platform that focuses on small- and medium-sized businesses (SMEs). By enabling consumers to purchase products and pay in installments, Motito is helping to boost local businesses and expand access to consumer credit in a market where such options are limited. With its easy-to-use mobile app and a growing merchant network, Motito is empowering consumers and businesses alike to engage in a more flexible financial ecosystem.

• PayJustNow

PayJustNow is one of South Africa’s leading BNPL providers. Launched in 2019, the platform offers consumers the flexibility to split their purchases into three equal interest-free installments. The service has become popular for its user-friendly approach and commitment to promoting responsible spending. In 2022, PayJustNow was acquired by Weaver Fintech, expanding its growth and reach. PayJustNow integrates with various online and brick-and-mortar retailers, providing consumers with more options to manage their finances while shopping.

• valU

Operating out of Egypt, valU is a digital consumer finance platform that offers BNPL services for a variety of products and services. Launched in 2017, valU is one of the most comprehensive BNPL platforms in the region, allowing consumers to finance everything from electronics to travel. It offers flexible payment plans ranging from three to 60 months, giving users a wide array of choices when it comes to managing their payments. valU has established partnerships with numerous merchants and service providers across Egypt.

These BNPL providers are paving the way for greater financial inclusion across Africa, offering consumers flexible payment options and driving growth in the e-commerce sector.