Egypt Buy Now Pay Later Business and Investment Opportunities Report 2022 - Innovative BNPL Startups are Using AI to Assess SMEs' Credibility in the B2B Sector in Egypt

DUBLIN, Nov. 2, 2022 /PRNewswire/ -- The "Egypt Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to  ResearchAndMarkets.com's offering.

According to the publisher, BNPL payments in the country are expected to grow by 93.6% on an annual basis to reach US$875.4 million in 2022.

Medium to long term growth story of BNPL industry in Egypt remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 39.7% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$452.1 million in 2021 to reach US$6,515.9 million by 2028.

In the Middle East and Africa region (MEA), the adoption of digital payments has been on a consistent rise over the last few years, largely driven by the global pandemic outbreak. In Egypt, trends have been similar, where more and more consumers are using digital payment methods, such as buy now pay later (BNPL), to complete their in-store and online purchases in the country.

During the global pandemic outbreak, a rising number of Egyptians flocked to online shopping platforms, which has assisted the adoption of BNPL services and boosted the transaction volume for providers. As online shopping continues to grow in Egypt, the trend is expected to accelerate further; as a result, the publisher expects more e-commerce marketplaces to launch BNPL services for their customers in Egypt.

Along with the growth in the B2C sector, BNPL is expected to make inroads in the B2B space as well from the short to medium-term perspective in Egypt. This will further boost the BNPL transaction value and volume in the country over the next three to four years, thereby driving the growth of the overall sector.

Global e-commerce marketplaces are launching BNPL services for online shoppers in Egypt

Amid the growing BNPL demand among online shoppers in Egypt, global e-commerce marketplaces are launching deferred payment services for online shoppers in the country. For instance,

• In July 2022, Amazon, one of the leading global e-commerce platforms, announced the launch of the BNPL payment option for its customers in Egypt. To launch the service, the firm entered into a strategic collaboration with valU, the leading BNPL provider in Egypt.
• The launch of the BNPL payment option by Amazon is a testament to the growing demand for deferred payment methods among online shoppers in Egypt. The BNPL option allows customers to choose an installment plan, ranging from 6 to 60 months, without any down payment.

The publisher expects more online retailers to launch BNPL services in Egypt as consumers continue to shop from retailers that offer a deferred payment option in the country.

Innovative BNPL startups are using artificial intelligence to assess SMEs' credibility in the B2B sector in Egypt

After gaining rapid success in the B2C sector, firms are now targeting the B2B market to enter the Egyptian BNPL market. These startups are artificial intelligence to offer financial solutions to small and medium-sized businesses in Egypt. For instance,

• In June 2022, Hollydesk, a Cairo-based Fintech firm, announced the launch of its BNPL service for small and medium-sized enterprises (SMEs) in Egypt. Notably, the BNPL service allows SMEs to pay vendors over a 30 to 90-day period. The firm makes use of artificial intelligence (AI) rather than using traditional credit reports for assessing potential BNPL borrowers. According to the firm, Hollydesk is expecting EGP 500 million in transactions in 2023.

As the demand for BNPL continues to grow in the Egyptian B2B space, the publisher expects more firms to enter the sector from the short to medium-term perspective. This will further support the growth of the overall Egyptian BNPL industry over the next three to four years.

BNPL firms are raising a funding round from regional investors to expand their presence in the MEA

Across the Middle East and Africa region (MEA), the BNPL market has recorded strong growth amid the rising demand among consumers as well as merchants. Consequently, firms are looking to expand their presence in the MEA region, and as a result, firms are entering into strategic investment partnerships with regional investors. For instance,

• In June 2022, valU announced that the firm raised US$12.4 million in a strategic investment round from a Saudi-based Alhokair Family. Notably, Alhokair Family raised a 4.99% stake in the Egyptian BNPL firm against a US$12.4 million investment. The funding round has valued the firm at US$247.4 million. This strategic investment round is expected to assist the firm in further strengthening its position in the MEA region.

The publisher expects more domestic BNPL firms to raise such strategic investment from regional and global investors as they consider further strengthen their position in the global BNPL industry.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Egypt. Below is a summary of key market segments:

Egypt BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Egypt Buy Now Pay Later Operational KPIs

• Buy Now Pay Later Revenues, 2019 - 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 - 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
• Buy Now Pay Later Accounts, 2019 - 2028
• Buy Now Pay Later Bad Debt, 2019 - 2028

Egypt Buy Now Pay Later Market Share Analysis by Key Players

• (Shahry , valU, Fawry , Valeo, Sympl)

Egypt Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

• Online Channel
• POS Channel

Egypt Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Egypt Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Egypt Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Egypt Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Egypt Buy Now Pay Later in Other: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Egypt Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Reasons to buy

• In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
• Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.
• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.
• Market Share by Key Players

For more information about this report visit https://www.researchandmarkets.com/r/loxkuh

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