Deferred payment solutions boost e-commerce in Morocco
E-commerce in Morocco is undergoing a significant transformation thanks to the adoption of deferred payment solutions. The ‘buy now, pay later’ (BNPL) model is rapidly gaining ground, attracting investment and facilitating the financial inclusion of large sectors of the population.
A booming market with great potential
The BNPL sector in Morocco is on the threshold of explosive growth, driven by digitalisation and the evolution of financial technology. Fintech companies have begun to explore the consumer lending market in a country where the authorities are seeking to strengthen the digital economy and attract investors.
The Moroccan start-up Alia has become a pioneer in this sector, starting operations in March after obtaining the first licence from the Central Bank to offer BNPL solutions. This regulatory backing has enabled the company to raise finance, including investment funds such as Proparco from the French Development Agency (AFD).
According to Ibrahim Zayed, founder of Alia, the BNPL market in Morocco is estimated to be worth between 15 and 20 billion dirhams (1.5 to 2 billion dollars), with growth projections that could reach 5 billion dollars by the end of the decade.
Benefits of this model
This deferred payment model has proven to be a practical and efficient solution for consumers and merchants. It allows buyers to access goods and services without the need for immediate liquidity, dividing the payment into instalments with no additional interest in many cases. This has contributed to increasing the purchasing power of consumers and has had a positive impact on e-commerce sales.
According to the MasterCard 2022 Payment Index, 74% of Moroccan consumers are familiar with this concept and 39% consider it a convenient and flexible option. Furthermore, this system has proven successful in markets such as Europe, where Klarna has consolidated its leadership, and in Saudi Arabia, where the fintech Tabby became a unicorn after reaching a valuation of over 1 billion dollars.
Challenges of BNPL
Despite its benefits, the BNPL system also poses significant challenges. Consumer protection associations have warned of the risk of over-indebtedness, as some users may enter into financial commitments without assessing their real ability to pay.
Bouazza Al-Kharati, president of the National Association for Consumer Protection in Morocco, has emphasised that deferred payment is not a new concept, as banks have been offering instalment credit services for decades. However, the BNPL model has evolved into a specialised industry that attracts consumers through marketing strategies and technology.
Experts in the financial sector have emphasised the need for stricter regulations to avoid over-indebtedness and protect consumers. It has been proposed to establish a maximum credit limit based on each individual's monthly income, with the aim of guaranteeing the financial sustainability of those who use these services.
The rise of deferred payment in Morocco represents a significant step in the modernisation of e-commerce and financial inclusion. With the backing of investors and regulators, fintechs such as Alia are paving the way for a new era of more flexible and accessible digital transactions. However, the success of the model will depend on a balance between the growth of the sector and consumer protection, guaranteeing a responsible and sustainable use of this innovative financial solution.