Getting Started As A BNPL Service Provider — 5 Key Things You Need to Know

The future of credit is here. It’s Buy Now Pay Later, and it is here to stay. Even better, consumers are here for it.

Before we dig deeper though, in this article, we touch on the following concerning Buy Now, Pay Later:

Moving ahead…

According to the Q4 2021 BNPL Survey, BNPL payment in Nigeria there is an expected 111.2% annual growth which will reach US$ 1920.3 million in 2022.¹

How we got here?

Poor access to credit.

The various ways consumers can access credit are broken, and consumers are desperate for more options.

With these issues, it’s no wonder that consumers are actively seeking a way out. And, with BNPL taking centre stage, Nigerian consumers may finally be getting their wishes granted.

BNPL products address these issues by offering low to zero interest cost loans to a wider pool of customers who are underwritten not only based on their credit scores but also, many other alternative data points.⁴

Buy Now Pay Later is similar to taking a personal loan. Typically, people request loans to solve an immediate problem. Whether consumers are trying to purchase products to furnish a house, buy a car, pay school fees, or sort out their rent, there is often an immediate need they want to satisfy.

What is Buy Now, Pay Later?

Buy Now Pay Later popularly referred to as BNPL is a financing method where consumers are allowed to purchase an item now, and pay for the item in instalments later — over a set period.

With BNPL, consumers don’t pay for the items they want to purchase all at once. Instead, they pay only a portion of the price upfront, spreading out the remaining cost over a predetermined number of equal instalment payments. These payments are often interest-free, and the approval process is fairly fast for consumers.

BNPL impact on the e-commerce industry

While it appears BNPL serves the e-commerce market the most, businesses are finding opportunities to go beyond e-commerce. For instance making provision for car purchases, rent, school fees etc.

The e-commerce industry however, is bound to see exponential growth, and stands to benefit a lot from the growing BNPL trend.

From this chart below, we can see what the e-commerce industry looks like in terms of growth over the next few years.

The Next Wave: Buy Now Pay Later is Worrying and Exciting

On a global scale, we can also see that BNPL in e-commerce has seen consistent growth⁶.

Global Payments: The Power of Buy Now Pay Later

BNPL is a win-win situation for consumers and retailers.

According to a report by Accenture, BNPL, while creating $590 million in cost savings, has enabled merchants to gain $8.2 billion in new revenues. It was discovered that when merchants offer BNPL to shoppers, they tend to buy more.⁷

The seller gets instant payment and increased cart value, increased conversion rates and overall footfall and the consumer gets affordable solutions that increase her purchasing power.

Buy Now, Pay Later in Nigeria

Medium to long term growth story of BNPL industry in Nigeria remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 54.0% during 2022–2028. The BNPL Gross Merchandise Value in the country will increase from US$ 909.1 million in 2021 to reach US$ 25615.9 million by 2028.⁸

Millennials and Bridge Millennials having been identified as the early adopters of BNPL globally, are likely the demographic that will facilitate these numbers.⁹

With millennials and bridge millennials accounting for 39.81% of Nigeria’s labor force, it’s evident that a serviceable market for BNPL exists.¹⁰

Some of the providers that stand to facilitate these numbers for this demographic are LipaLater, Carbon Zero, Zilla Africa, CDCare, AltMall, etc.

Getting Started with Buy Now, Pay Later

In essence, we are gradually seeing BNPL take centre stage in various areas, from e-commerce to retail, rent, and even schooling. However, as flourishing as the BNPL industry is looking locally and globally, providers need to set up risk-free processes that will propel its success. These processes, from the tools to the model should be consumer-friendly without compromising profit for both the vendor and the provider.




We use advanced machine learning technology to unearth unique customer financial data, enabling digital lenders to make smarter credit decisions.

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We use advanced machine learning technology to unearth unique customer financial data, enabling digital lenders to make smarter credit decisions.