Egyptian fintech giant Fawry has set a notable precedent in the Buy Now, Pay Later (BNPL) market in Africa, generating $20 million in revenue just a year after launching the service. This milestone marks a significant step in the region’s evolving fintech landscape, where companies are increasingly exploring alternative payment solutions to meet rising consumer demand for more flexible financial products.

Since its inception in mid-2023, Fawry’s BNPL service has provided over EGP 1 billion ($20 million) in total facilities and revenues, according to data from the company. This swift uptake is indicative of the strong consumer appetite for deferred payment options, especially in markets like Egypt where access to formal credit remains limited for much of the population.

Capitalizing on a Broad Customer Base

Fawry’s rapid success in the BNPL space can be partly attributed to its existing infrastructure and customer reach. The company has leveraged its digital platform, My Fawry, which boasts over 10 million app downloads, to seamlessly integrate BNPL services for its users. In addition, the introduction of the My Fawry prepaid card has further bolstered the adoption of BNPL by simplifying transactions and increasing consumer engagement.

“Fawry’s ability to pivot into consumer finance while leveraging its existing ecosystem is a testament to the company’s forward-thinking approach,” said Ashraf Sabry, CEO of Fawry. Sabry highlighted that the expansion into BNPL aligns with the company’s mission of promoting financial inclusion and offering innovative services to underserved communities in Egypt.

Innovating for Financial Inclusion

Fawry’s entry into BNPL signals more than just a profitable business model — it reflects a broader strategy of fostering financial inclusion. While traditional banks and lending institutions remain out of reach for a large portion of Egypt’s population, BNPL services provide an accessible alternative. The company’s focus on underserved groups is evident in its product offering, which allows consumers to make purchases on credit without the need for a formal bank loan or credit card, often bypassing the stringent requirements that are commonplace in the formal banking sector.

This innovation is particularly timely in Egypt, where macroeconomic challenges such as inflation and currency devaluation have strained consumer purchasing power. Fawry’s BNPL model allows consumers to spread out payments for essential goods and services, making it an attractive option for both low- and middle-income households.

Positioning for Growth Amid Competition

The success of Fawry’s BNPL service comes at a time when Africa’s fintech sector is experiencing significant growth. However, competition is intensifying as both local and international players eye the lucrative BNPL market, particularly in populous countries like Egypt and Nigeria. Companies such as PayFlex in South Africa and CredPal in Nigeria are already making strides, though Fawry’s established presence and diverse product ecosystem give it a competitive edge in the Egyptian market.

The company’s ability to integrate BNPL into its broader suite of financial services, which includes bill payments, mobile top-ups, and e-commerce transactions, ensures that it remains at the forefront of fintech innovation in the region. By offering BNPL alongside these services, Fawry strengthens its position as a one-stop shop for financial needs, reducing the likelihood of customer churn to competitors.

The Path Ahead

For Fawry, the next challenge will be scaling its BNPL offering while maintaining strong customer engagement and managing the risks associated with deferred payments. Nevertheless, the company’s early success positions it well to expand both domestically and potentially into other African markets.

As Fawry continues to push the boundaries of fintech in Egypt, its foray into Buy Now, Pay Later could serve as a blueprint for other African fintech firms seeking to diversify their offerings in a rapidly evolving market. Whether this success can be replicated across the continent remains to be seen, but Fawry’s achievement sets a high bar for what is possible in African fintech.