One reason BNPL has grown so quickly in Egypt is simple: Traditional credit isn’t easy to access. Credit card usage remains below 5% (especially among young adults and informal workers). At the same time, online shopping and digital payments have become more common.

This mix of limited access to formal credit and growing digital behavior created the perfect conditions for BNPL to grow:

• In 2024, BNPL transaction volumes reached USD 1.26 billion
• By 2030, the market is projected to grow to USD 4.74 billion

Several Buy Now Pay Later providers in Egypt are now embedded directly into online stores and mobile apps, making it easier for people to split payments without going through a bank or formal loan process. You get what you need now, pay over time, and avoid the friction of credit approvals or paperwork.

This accessibility is at the core of the BNPL Egypt impact, and it’s only growing.

One clear impact of BNPL in Egypt is its influence on consumers' perceptions of affordability and short-term credit. Instead of paying a large amount upfront, customers can split costs over time without going through a lengthy credit process. For many, this flexibility means they can follow through on purchases they would’ve otherwise delayed or skipped.

According to a study published in the Arab Economic Journal, 69% of BNPL users in Egypt admit they're more likely to make an impulse purchase when installment options are available.

That said, many users are managing their repayments well. In the same study, 74% of users report always paying their BNPL installments on time, thanks to BNPL platforms that send reminders and offer auto-debit features to keep people on track.

Still, not everyone reads the fine print. Some users may not fully understand what happens if a payment is missed or how long the repayment period lasts. This doesn’t mean BNPL is risky; it merely highlights the need for clearer communication and informed use.

Buy Now Pay Later (BNPL) in Egypt is changing how people approach short-term spending. As usage increases, BNPL is likely to play a long-term role in shaping Egypt’s consumer credit trends.

One of the most important functions of Buy Now Pay Later in Egypt is how it’s opening financial access to consumers who lack a credit history. Millions of Egyptians remain outside the formal banking system. According to the Central Bank of Egypt, around 25% of adults still don’t use any formal financial service.

For many of these consumers, BNPL is the first step into the world of structured credit.

By removing the traditional barriers (no collateral, no lengthy credit checks), BNPL allows people to access payment plans without going through a bank. This is particularly useful for young people, freelancers, and informal workers who may have regular income but lack a documented financial history.

BNPL in Egypt and e-commerce have grown side by side; buyers have access to credit and products, while businesses increase sales and customer acquisition.

Platforms like Amazon Egypt, Jumia, and Noon now offer installment options at checkout through local providers. These services give customers more payment flexibility and help businesses increase completed orders and reduce the number of carts abandoned at the last step.

One recent example is the expanded partnership between JumiaPay Egypt and Contact CrediTech. During Jumia’s 12th anniversary campaign, customers were offered six-month installment plans with no interest, no down payment, and no administrative fees. The offer was built directly into online checkout, making it easy for shoppers to access and equally as easy for merchants to add.

For many merchants, especially in retail, e-commerce financing is a competitive necessity.

BNPL’s role in Egypt goes well beyond online retail. It’s becoming part of how businesses (large and small) reach customers, manage sales, and structure their pricing.

By offering installment plans, companies are able to reach more customers, particularly in sectors where affordability is a barrier. This allows them to maintain steady sales without having to lower prices.

Major retailers like as B.TECH, Vodafone, and Orange Egypt have integrated BNPL into both online and offline sales channels.

Key business benefits of BNPL:

• Increased conversion rates by reducing friction at the point of sale
• Access to new customer segments who might otherwise delay or avoid purchases
• Reduced financial risk, since licensed BNPL providers manage credit and collections
• Better pricing strategy, allowing businesses to offer flexible terms without lowering prices

Beyond retail, businesses in areas such as healthcare, education, and automotive services are beginning to explore installment options as a way to meet the growing demand for more flexible payment terms.

While BNPL does increase sales, it also introduces a new set of risks for businesses, especially for those scaling quickly or relying heavily on installment-based purchases:

One of the biggest challenges is overexposure to credit risk. Even though the BNPL provider typically carries the financing burden, merchants still face indirect consequences when customers delay payments. These include reputational damage, refund complications, and the risk of partnership instability if the providers tighten credit terms.

Then there’s the operational side. Integrating a BNPL system on e-commerce platforms is not an easy task. For large enterprises, this might be a matter of syncing teams and tools. For smaller merchants, it can create real strain on staff, logistics, and cash flow management.

The zero-interest model also isn’t always sustainable. Some businesses end up absorbing transaction fees or offering discounts just to compete, which can shrink already thin profit margins.

BNPL regulation has become essential for maintaining the safety and sustainability of the Egyptian market. The Financial Regulatory Authority (FRA) now oversees BNPL providers under Fintech Law No. 5 of 2022, setting clear rules around licensing, capital requirements, and risk controls.

In 2024, the FRA paused the issuance of new BNPL licenses to prevent market overheating.

Licensed providers are now required to meet stricter criteria:

• Clear repayment terms
• Transparency in fees
• Limits on portfolio concentration
• No savings or interest-bearing products

These measures are meant to protect both consumers and businesses, and they give licensed players, like Contact, a clear framework to operate within responsibly.

What started with online retail has now moved into in-store checkouts, QR payments, and mobile app payments. And BNPL is no longer reserved for electronics or luxury items; it’s being used for education, healthcare, and everyday services.

Strategic partnerships between Buy Now Pay Later providers in Egypt and established financial institutions are expected to further accelerate this growth.

A great example is the partnership between Fawry and Contact Financial Holding, which brings installment solutions to over 370,000 payment points across Egypt. It’s the kind of reach that takes BNPL into mainstream finance.

As more people and businesses use BNPL, so too does the responsibility to offer BNPL services that are fully licensed and built to last.

That is why Contact is focused on making BNPL accessible and sustainable. With a nationwide network, FRA licensing, and a growing list of retail, fintech, and payment partners, Contact is helping define what responsible e-commerce financing looks like in Egypt.

Whether it’s for individuals or retailers, our goal is the same: To make payments aligned with the way people spend today. Learn more about our philosophy behind how we work, or reach out to us to explore your options.