BNPL Trends: Disrupting the Industry & Pioneering Innovation

StartupScene’s newest op-ed series ‘Masterclass’ invites some of the region’s most dynamic entrepreneurs to divulge their secrets, dispense their knowledge, and share their experiences with the MENA region’s ever growing startup ecosystem. Whether they’re written by old guards or trailblazers, these masterclasses have been created to illuminate the path for aspiring entrepreneurs.

This week’s Masterclass contributor is Mohamed El-Feky, Founder and CEO of Sympl, a leading BNPL platform in Egypt. El-Feky shares his views on how BNPL is transforming the payments industry in Egypt and the wider MENA region.

BNPL Trends: Disrupting the Industry & Pioneering Innovation

Buy Now, Pay Later (BNPL) has emerged as a transformative force in the retail industry, revolutionizing the way consumers make purchases. This innovative payment option has gained significant traction globally, challenging traditional payment methods and disrupting the financial industry. In this article, I’ll explore untapped opportunities of BNPL, discuss key trends that are set to disrupt the industry, and highlight strategies for pioneering innovation in BNPL in Egypt and the wider region.

Exploring untapped opportunities

While BNPL has gained significant traction globally, including in Western countries and some parts of Asia, the market in Egypt and the wider region is still relatively untapped. This presents an exciting opportunity for BNPL providers to enter and establish themselves in these markets.

Egypt's e-commerce sector may have been experiencing rapid growth, fueled by an increasingly tech-savvy population and improved internet infrastructure, but the lack of flexible payment options remains a significant barrier to further adoption. By introducing BNPL services tailored to the Egyptian market, providers can tap into this burgeoning e-commerce landscape and cater to the preferences of Egyptian consumers.

BNPL can also play a crucial role in promoting financial inclusion in Egypt and the region, since many individuals lack access to traditional credit facilities or find them unaffordable. By offering BNPL solutions with minimal requirements and transparent terms, providers can extend financial accessibility to underserved populations. This inclusivity would not only benefit individuals but also stimulate economic growth by empowering consumers to make essential purchases.

Paying Attention to Key Trends

With a shift in consumer spending habits and the rise of digital payment solutions, new trends are emerging in the BNPL landscape, further fueling growth and popularity of this payment service.

One such trend is consumer preference for flexible payment options. In an era where convenience and flexibility reign supreme, consumers are increasingly drawn to BNPL services. The ability to split payments into smaller, interest-free installments appeals to a wide range of shoppers, particularly millennials and Gen Z, who prioritize budgeting and prefer to avoid incurring credit card debt. The rising popularity of BNPL has led to an increased adoption of these services by both online and brick-and-mortar retailers.

Another trend is partnerships with retailers. BNPL providers have realized the importance of strategic partnerships with retailers to drive adoption and offer a seamless checkout experience. Collaborations with e-commerce giants, fashion brands, and other retailers have become commonplace, allowing BNPL companies to tap into existing customer bases and expand their reach. By integrating BNPL services directly into the checkout process, retailers can enhance customer satisfaction and boost conversion rates.

Pioneering innovation

As a leading provider of BNPL solutions, our company has spearheaded innovation in the industry. We have successfully collaborated with shopping malls, retail outlets, beauty salons, and various other end-user services providers to offer our products. The rationale behind these partnerships lies in understanding the specific needs and preferences of target demographics.

Both shopping malls and retail outlets serve as ideal partners for BNPL providers due to their high customer footfall and diverse product offerings. By integrating our BNPL solution with them, we aim to offer a convenient and flexible payment option to consumers while increasing sales for our partners. This approach has proven successful in attracting new customers and enhancing customer loyalty.

Meanwhile, beauty salons represent a unique market segment where customers often spend substantial amounts on services and products. By offering BNPL options in beauty salons, we enable customers to manage their expenses effectively while indulging in self-care. Our goal is to provide a seamless payment experience that aligns with the luxurious nature of these establishments.

But to succeed as a payment solution, BNPL providers need to establish partnerships with local businesses, both online and offline. For instance, when Sympl was launched, online used to present about 5% of business in 2021. Today, however, it represents about 40%, and we expect to see continued traction in this space as customers rely  more on BNPL services.