Buy Now, Pay Later: The Rise of BNPL services for consumer financing

Buy Now, Pay Later: The Rise of BNPL services for consumer financing

BNPL stands for a form of POS (point of sale), which means that credit originated directly at the time and end of a purchase. It differs from a customer mandated to secure credit from a lender or a service provider ahead of their shopping experience.

BNPL (Buy Now, Pay Later) can be described as unsecured consumer credit and an increasingly popular fintech-enabled payment option in Nigeria today, most commonly offered on e-commerce platforms and some companies. The history of "Buy Now Pay Later" traces back to the installment plan – a process to pay for large or medium purchases over time by spreading it over several smaller payments.

It is a financing alternative for consumers at the base of the transaction pyramid. Still, it has also evolved into the business credit space.

What is Consumer Financing?

Consumer financing initiatives extend loans or credit lines to individuals, enhancing purchase options. For instance, a purchaser eyeing a smartwatch online might worry about its cost.

If the seller implements a consumer financing program, they can propose a store credit card during checkout. It empowers the customer to afford the couch without immediate full payment.

Additionally, the retailer could present alternatives such as installment loans, monthly payments, and loyalty program perks to facilitate the purchase decision through flexibility.

Why consumer financing pays off

Consumer financing offers manifold benefits for both buyers and sellers. For consumers, it unlocks access to higher-priced items that might otherwise be financially daunting, enhancing purchasing power. By spreading payments over time, individuals can manage their budgets more effectively.

Sellers gain by increasing sales potential, tapping into a broader customer base, and fostering customer loyalty through tailored payment options. Moreover, this approach minimizes cart abandonment, boosting conversion rates.

Overall, consumer financing is advantageous as it aligns with modern shopping preferences, bridges affordability gaps, and creates a win-win scenario for businesses and buyers.

Companies that offer BNPL services in Nigeria

Carbon: Carbon is a leading Nigerian fintech enterprise that delivers various financial solutions encompassing loans and digital payment services. Although they may not have exclusively functioned as a 'Buy Now, Pay Later service, they were committed to extending credit alternatives to consumers.

FairMoney: The trusted name of FairMoney shines in Nigerian fintech, offering a mobile app platform for seamless access to loans and essential financial services. They also provided options for short-term credit, catering to your financial needs.

Renmoney: A reliable partner in the Nigerian financial landscape, Renmoney specializes in furnishing loans and a spectrum of financial services tailored for individuals. It's reassuring that they may have made confident installment-based payment choices available, ensuring your comfort.

Branch: A Branch in the fintech arena assures accessible loans and comprehensive financial services via a user-friendly mobile app. Their commitment might have encompassed credit products thoughtfully designed with flexible repayment terms, offering you financial ease and empowerment."

How effective are these BNPL services?

To a large extent, outbursts have greeted the skyrocketed interest rates at which borrowers ship out loans to consumers, leaving with an acclaimed loan sharks tag. To make things worse, these BNPL providers have no choice but to make use of traditional means of getting information from both the underserved and unbanked, which points out that they are cutting and sewing their garments of loans with guesses and not accurate data as needed.

Can they be better?

Yes, with Oystr TH, the newest and most innovative product from Oystr Finance, a fintech aimed at decentralizing credit in Africa, these BNPL service providers stand a better chance to effective loan disbursement and loan recovery with the charts means of acquiring data that effectively captures the real-time data, APIs and representation of what their customers are (be it SAACOs or MMO- mobile money agents).

In case you missed our article on how to streamline your loan origination process, read it here.


The birth of Buy Now, Pay Later (BNPL) services marks a remarkable evolution in consumer financing. This innovative approach has not only transformed the way individuals shop and manage their finances but has also revolutionized the traditional lending landscape. As BNPL continues to gain momentum, its convenience, flexibility, and accessibility have paved the way for a more inclusive and consumer-centric financial ecosystem.

With its ability to bridge the gap between instant gratification and responsible spending, BNPL stands as a testament to the power of technological innovation in shaping the future of consumer financing.

However, as this trend unfolds, carefully considering its potential impact on financial discipline and responsible borrowing remains crucial. As the financial industry navigates this evolving landscape, finding the right balance between convenience and financial responsibility will be vital to ensuring the long-term success and sustainability of BNPL services.