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Bassim Haidar, a Nigerian-Lebanese tycoon, is planning to launch an African e-commerce buy now pay later (BNPL) product for small and medium-sized businesses, particularly those in communities outside the formal financial ecosystem.
In line with the planned entry into the billion-dollar African BNPL market, Haidar revealed that the BNPL e-commerce product will launch in South Africa as its first market, with Nigeria following later.
The Nigerian-Lebanese telecom tycoon’s BNPL e-commerce product will provide e-commerce suppliers with a cost guarantee and allow SME customers to spread the bill over three or four months, increasing their revenue.
“They will increase their earnings right now, not in six, eight, or ten months,” Haidar said of the new technology, adding that it will make a significant difference to businesses because they will purchase new equipment as soon as it is required.
Haidar is a successful telecom entrepreneur and the founder of Channel VAS Group, a fintech company that offers mobile financial services, airtime credit, airtime advance services, handset loans, and big data analytics.
His decision to launch an African e-commerce BNPL product for small and medium-sized businesses comes after he listed his 208-foot yacht, “Bash” for sale.
With Sub-Saharan Africa being one of the world’s fastest-growing consumer markets, many consumer finance start-ups are looking to capitalize on the potential African BNPL market.
The value of goods purchased through BNPL is expected to reach $325 million in Nigeria alone by the end of 2021, and $1.195 billion by 2028.
In recent years, BNPL has evolved from a niche payment method to a multibillion-dollar industry.
Companies like Klarna and Afterpay enable customers all over the world, particularly in the United States and Europe, to purchase items while only paying a small upfront deposit.
