March 29, 2024

Revolutionizing Consumer Finance

The BNPL market in Nigeria has witnessed significant growth in recent years, driven by the increasing adoption of e-commerce and the growing demand for future payments among consumers.

In recent years, Buy Now, Pay Later (BNPL) services have been revolutionizing the way consumers shop and pay for goods and services globally. BNPL services offer consumers the flexibility to make purchases upfront and pay for them in installments over time or at once, without incurring traditional credit card debt or bank loans.


BNPL services in Nigeria operate similarly to those in other parts of the world. These services allow consumers to make purchases online with payments over a specified period. This payment option appeals to consumers who may not have access to immediate cash payment or cash restrictions within their business.

The BNPL market in Nigeria has witnessed significant growth in recent years, driven by the increasing adoption of e-commerce and the growing demand for future payments among consumers. Both local startups and international players have entered the Nigerian market to capitalize on this growing trend.

Process of BNPL

  1. Application and Approval: Consumers interested in using BNPL must complete an application process at the point of checkout or before checkout initiation, which usually involves providing basic personal and business information. Approval is often instant, with the eligibility credit limit varying based on the customer’s credit score.
  2. Purchase with BNPL: When purchasing online, consumers are presented with the option to pay using a BNPL service at the checkout.
  3. Payment Schedule: In Nigeria, payment schedules typically range from weekly to monthly installments. If the customer has a sufficient credit limit to cover the items in the cart, they can complete the checkout process and secure the loan.
  4. Repayment: The customer can make payments either in installments or in a lump sum, with the applicable interest rate added to the loan amount.

Positive implications of BNPL

BNPL services offer several advantages for both consumers and merchants:

Benefits for customers

  • Financial Flexibility: BNPL allows consumers to spread the cost of purchases over time, making expensive items more affordable and budget-friendly.
  • Buyer Flexibility: Offer eligible customers access to a credit limit, allowing them to make multiple purchases at checkout.
  • Convenience:
    • The application and approval process for BNPL is often quick and straightforward, providing consumers with a convenient payment option at the point of sale.
    • BNPL allows customers to “enjoy now, pay later”.
  • Increased Conversion Rates: For merchants, offering BNPL can lead to higher conversion rates and larger average order values, as it reduces the barrier to purchasing for consumers.

Benefits for merchants

  • Increased sales: By providing customers with the flexibility to spread payments over time, merchants can attract more buyers and encourage them to make larger purchases
  • Expand customer base: BNPL services appeal to a broader audience, consumers who may not have immediate access to funds
  • Reduced Cart Abandonment: Offering BNPL at the checkout can help reduce cart abandonment rates. Many consumers abandon their carts due to concerns about affordability or budget constraints.
  • Increased cash flow: While consumers pay for purchases at a later date, merchants typically receive payment upfront from the BNPL provider. This accelerates cash flow for merchants, improving liquidity and supporting business operations

Overall, BNPL services benefit both merchants and consumers by driving sales, enhancing financial flexibility, and improving the shopping experience

Drawbacks of BNPL

While BNPL services offer many benefits, there are also some potential drawbacks to consider:

  1. Overspending: The ease of using BNPL may tempt consumers to overspend or make impulse purchases, leading to financial strain if not managed responsibly.
    • Mitigation: Implement spending limits or offer financial education resources to help consumers make informed decisions about their purchases
  2. Late Fees: Failure to make timely payments on BNPL purchases can result in late fees or penalties.
    • Mitigation: Communicate payment due dates and consequences of late payments to customers. Also offering grace periods and reminders.
  3. Impact on Credit Score: While BNPL transactions typically do not directly impact credit scores, missed payments could affect a consumer’s creditworthiness if reported to credit bureaus.
    • Mitigation: Educate customers about the potential impact of BNPL usage on their credit score and encourage responsible borrowing practices and timely repayment to maintain or improve creditworthiness.

Impact of BNPL in Nigeria

The growing popularity of BNPL services in Nigeria is reshaping the consumer finance landscape in several ways:

  1. Increased Access to Credit: BNPL services provide consumers with access to credit for online purchases. This expands financial inclusion and enables more individuals to participate in the digital economy.
  2. Shift in Consumer Behavior: The availability of BNPL options influences consumer spending habits, encouraging more frequent purchases and larger basket sizes. This trend is driving higher sales volumes for merchants and contributing to the growth of the e-commerce sector in Nigeria.
  3. Rise in Financial Literacy: As BNPL services gain traction, consumers are becoming more aware of financial management practices, such as budgeting and responsible borrowing.

Overall, Buy Now, Pay Later services are transforming the way Nigerians shop and pay for goods and services, offering convenience, flexibility, and access to credit in a rapidly evolving digital economy.

Getting started with Duplo’s BNPL

To revolutionize your business with Duplo’s BNPL product

As a merchant:

  • Speak to our team
  • Integrate with our checkout services
  • Share a unique sign-up URL with your customers
  • Get paid!

As a shopper:

  • Register with a Duplo merchant and use the provided sign-up URL.
  • Submit required KYC documents for account activation and credit limit.
  • At checkout, choose Duplo’s BNPL, complete the process, and you’re all set!

Got questions? please reach out to our team here

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