Africa and the Middle East buy now pay later payments (BNPL) are expected to grow by 26.6% on an annual basis to reach $12.6 billion in 2023, said in a report.

The medium to long term growth story of BNPL industry in Africa and the Middle East remains strong, the company that provides international market research reports said in a statement citing highlights of its report. 

BNPL payment adoption is expected to grow steadily over the forecast period, recording a Compound Annual Growth Rate of 17.8% during 2023-2028, the report titled 'Africa & Middle East Buy Now Pay Later Market 2023' said.    

The BNPL Gross Merchandise Value in the region will also increase to $28.6 billion by 2028 from $9.9 billion in 2022, the report said.

"The BNPL payment industry in Africa and Middle East regions has recorded strong growth over the last four quarters, supported by increased ecommerce penetration," it said.

The report provides a detailed analysis of the BNPL industry at regional and country level, covering market opportunities and risks across a range of retail categories, the authors of the report said.    

The report breaks down market opportunity by type of business model, sales channels - offline and online - and distribution models, the company said.     

It also provides a snapshot of consumer behaviour and retail spend dynamics, and it also focuses on upcoming business and investment market prospects.

(Editing by Seban Scaria )