Amidst the bustling streets of Accra, a young executive assistant steps into a nearby waakye joint. Rather than handing over cash right away, she types in a code and opts for Credit through a Buy-Now-Pay-Later (BNPL) scheme. This particular order amounts to roughly 40 Ghanaian cedis, spread across four weekly installments. Although this sum represents just an ordinary lunch bill, it offers us a hint at a subtle yet profound transformation occurring within city living spaces throughout Ghana.
BNPL has become an integral part of daily routines. Its use extends beyond purchasing smartphones or vehicles to covering expenses like school uniforms, food shopping, and even essential medical care. This transformation is gradually altering urban lifestyles and has led to the emergence of alternative lending entities outside traditional banking sectors.
To be honest, I manage a microfinance business personally; however, I do not promote it as vigorously as my other enterprises.
www.WellMaxCredit.com
). So, believe me when I tell you, the moment people hear an interest rate twice the national GRR, it’s already a yes.
Worldwide, the Buy Now Pay Later (BNPL) sector is projected to exceed USD 560 billion by 2025 (FinTech Futures, 2025). On the continent of Africa, this trend has evident allure: minimal startup hurdles, user-friendly mobile platforms, and a demographic progressively at ease with online financial services (Mastercard BNPL in Africa Report, 2024). Nonetheless, alongside these opportunities lie significant risks, particularly placing African urban areas under distinct pressure.
Why Is BNPL Experiencing Growth in African Urban Areas?
Three factors are fueling the rise of BNPL services throughout Europe.
Smartphone penetration
Inexpensive gadgets coupled with mobile internet have enabled millions of people to gain entry into digital marketplaces where Buy Now Pay Later options are integrated into the payment process (Mastercard BNPL in Africa Report, 2024).
Informal economies
A large share of urban workers operate outside formal banking systems. BNPL offers them flexible, low-friction access to goods and services (McKinsey Informal Economy Trends Report, 2024).
Cultural aspirations
Increasing numbers of people living in cities, driven by a youthful population, are keen to embrace contemporary ways of life, and BNPL makes luxury purchases seem within reach.
Firms are customizing BNPL solutions to fit local needs, covering items ranging from computers to fertilizer. However, this development masks an unsettling reality: relying on financing for fundamental necessities indicates that societal structures are experiencing considerable strain.
The risk of accepting debt as a standard means of survival
Traditionally, credit has acted as a tool for investments such as purchasing a home, obtaining an education, or funding a business. In modern times, Buy Now Pay Later (BNPL) services are being utilized more frequently for necessary expenses including food, work footwear, and utility payments.
This change is nuanced yet significant. It has the potential to create a new category of “debt-reliant individuals” for whom their regular financial planning relies heavily on piecemeal, postponed commitments.
In Accra, informal surveys suggest that as many as 30% of BNPL users simultaneously manage three or more installment plans (McKinsey Informal Economy Trends Report, 2024). To keep themselves financially afloat, many resort to rotating payments, essentially managing multiple small debts to sustain an appearance of stability.
If not carefully regulated and coupled with financial education, this situation might lead to widespread instability. I’ve addressed these concerns with the Micro-Credit Association of Ghana. They showed significant interest in developing comprehensive national guidelines for ethical BNPL practices and integrating them with larger objectives aimed at increasing financial inclusivity.
The influence of BNPL on the resilience of cities
Why is this significant for communities as a whole? Because economically fragile residents diminish the financial strength of whole municipalities. This decline shows up through various intertwined channels, subtly yet significantly undermining the stability of city living.
Lower household savings
If installments continually consume future earnings, households have minimal ability to handle monetary surprises. Consequently, they become susceptible to crises and regular variations such as increased food costs, an ill child, or postponed wages. Gradually, this diminishes cross-generational assets since parents find it difficult to set aside funds for their offspring’s schooling or pursue enduring objectives.
Weaker consumer confidence
In a setting where Buy Now Pay Later commitments have fragmented discretionary income, consumer spending turns into a reactionary act instead of being planned out. Individuals purchase merely essential items promptly, frequently in lesser amounts, leading to reduced large-scale buys and adversely affecting total profit margins for businesses. Such unpredictability complicates matters for small and medium-sized enterprises when forecasting sales volumes, controlling stock levels, or securing financing efficiently.
Higher mental health burdens
The emotional toll of juggling repayments, dodging defaults, and living under constant financial uncertainty is severe. Persistent financial anxiety is closely linked to depression, low self-worth, and in some cases, substance dependency (World Health Organization, 2024). As stress compounds, it can affect productivity at work, relationships at home, and even physical health.
Reduced civic engagement
People caught in an endless loop of financial struggle find themselves with less time and energy to engage in communal activities such as volunteer work, participation in town gatherings, or involvement in neighborhood projects. As a result, this diminishes social unity and mutual confidence—key elements needed for strong, adaptable cities.
Urban vulnerability does not start with potholed streets or gridlocked traffic. It originates from people who must face everyday challenges without the crucial buffer of economic stability.
When individuals have the ability to plan, invest, and aspire, cities thrive. However, an uncontrolled reliance on Buy Now Pay Later services turns ambitions into anxieties and erodes the core principles of sustainable urban growth.
Intervention strategies: Creating robust credit environments
Buy Now Pay Later (BNPL) isn’t fundamentally flawed. If handled prudently, it has the potential to significantly boost financial inclusivity. Nevertheless, similar to all potent tools, BNPL needs safeguards, recurring evaluations, and a thorough comprehension of its impact on susceptible groups. Regulators, technology firms specializing in finance (FinTechs), community leaders, and educators across Africa should work together to create an environment that ensures both accessibility and safety.
Cap effective interest rates
Certain Buy Now Pay Later systems conceal substantial fees under the guise of “service charges.” These can accumulate rapidly, particularly for individuals with several outstanding loans. It is essential to enforce transparency requirements. Legal provisions ought to clearly differentiate service fees from concealed interest rates. Regulatory authorities should require the presentation of the complete cost of borrowing, possibly utilizing vernacular languages and illustrating scenarios relevant to typical transactions.
Mandate plain-language contracts
Contracts should be easily understandable for high school students and organized such that key elements (such as interest rates, penalties, and term lengths) are presented first. Consumers shouldn’t require legal assistance to comprehend a loan agreement. Additionally, regulators could consider incorporating visual aids and straightforward “credit scorecards” enabling clients to contrast different proposals similar to how they evaluate prepaid packages.
Incorporate payment information into credit reporting agencies
Properly maintained Buy Now Pay Later (BNPL) repayment records can pave the way for significant credit opportunities. Nonetheless, this relies on the data being submitted to nationwide or local agencies. Where digital identification is scarce, collaborations with telecommunications firms might offer alternate forms of identity to help build up one’s financial standing. The framework needs to include protections too; a single late payment shouldn’t instantly harm an individual’s rating.
Promote ‘Earn-Save-Spend-Later’ platforms
Rather than encouraging users to rely on borrowing for all their needs, FinTech companies could motivate them to focus on saving instead. The government could establish programs that either match savings contributions or provide graduated access to loans depending on good financial practices. To promote this shift towards long-term planning within everyday routines, these digital platforms might incorporate familiar game-like features such as visual progress indicators, incentives, and communal savings goals.
Initiate public financial literacy initiatives
Much like public health initiatives have educated countless individuals about handwashing or managing high blood pressure, educating people about public debt can equip them with essential skills such as budgeting, calculating interest rates, and practicing prudent lending habits. Various institutions including schools, religious organizations, marketplace groups, radio personalities, and social media figures are vital contributors in this effort. For example, in Ghana, financial literacy could be incorporated into civic education programs and entrepreneurial courses offered at senior secondary schools and universities.
Policies aren’t merely bureaucratic documents; they mold the financial mindset of an entire generation. If we fail to act promptly, we might normalize indebtedness as the standard mode of living.
Transformative Changes: Reconceptualizing Respect Away From Consumption
I could easily expand this into an entirely new piece.
Additionally, there is a significant cultural responsibility. Urban areas ought to assist in reshaping the concept of achieving success. Genuine respect should not be gauged by immediate accessibility to numerous products, but rather by stability, progress, and valuable contributions to society.
It involves acknowledging various indicators of achievement. To illustrate, a youth diligently saving money to purchase a piece of land or establishing a small-scale chicken farming business should be equally celebrated as someone flaunting a newly acquired mobile phone purchased through loans. Leaders within the community, customary chiefs, and notable personalities have the power to influence this mindset. They ought to openly commend traits like perseverance, restraint, and dedication rather than merely applauding rapid accumulation.
Community events have the potential to strengthen this transformation. Rather than solely focusing on showcasing material contributions or extravagant presentations during festivities, consider honoring the local young individuals with exceptional saving habits and the most influential community organizers. Alternatively, acknowledge those who successfully undergo financial education programs or fully pay back their small business loans without missing payments. Ponder how powerful such messages could be for others within the community. Religious institutions like churches and mosques might also consecrate savings containers and collaborative initiatives similarly to how they sanctify newly acquired vehicles and homes, which frequently appear in numerous social media clips.
The media plays an essential part as well. Plots from widely watched television series and soap operas can incorporate storylines featuring characters who steadily accumulate wealth through collaborative saving efforts, prudent financial management, or ethical business ventures. Social influencers have the power to present financial planning as desirable, demonstrating not only purchases but also detailing the processes involved in planning and saving for them. For instance, a Ghanaian content creator sharing videos about constructing their house one room at a time may encourage greater fiscal responsibility compared to typical foreign luxury product showcases. I recall Kojo Sheldon doing something akin to this by openly chronicling his progress in building his own home with his viewership.
Let’s be frank: today’s consumer culture values rapidity over environmental responsibility. However, cultures aren’t fixed; they change over time. Cities, with clear goals, can promote an idea where credit serves as a means for progress rather than just a mark of prestige.
By taking this approach, we will begin to construct urban economies based not just on infrastructure like roads and bridges, but also on enduring values.
Closing thoughts
BNPL, similar to credit, is not inherently positive or negative; rather, it acts as a mirror. This mirror reveals the values, systems, and circumstances of the society that embraces it.
By constructing systems that provide people with knowledge, rules, respect, and choices, credit transforms into a pathway toward opportunities, resilience, and improved lives.
However, if not addressed, credit turns into an insidious and damaging snare. While it sustains immediate existence, it erodes future development. On the surface, it enhances participation, yet beneath it amplifies stress.
We aren’t helpless. Ghana has the potential to create a distinct type of credit system, one that values patience, views transparency as essential groundwork, and imparts to its people that availability doesn’t equate to true power.
#Nowherecool, yet someplace should indeed feel welcoming. For this transformation to occur, our economic frameworks need to embrace warmth, be crafted with compassion, constructed purposefully, and grounded in collective advancement.
The future doesn’t merely rely on credit; it hinges on widespread trust.
I trust you found this piece informative and engaging. Your input is highly valuable to me. Please feel free to share any topic ideas you’d like me to explore further. To book a session, visit my Calendly link provided below.
www.calendly.com/maxwellampong
Alternatively, reach out to me via multiple platforms on my Linktree page at
www.linktr.ee/themax
. Subscribe to the
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If you wish to delve deeper into this topic, I’ve assembled a collection of readings and sources that offer more comprehensive insights and concentrate on specific aspects.
FinTech Futures,
Global Business Report on Buy Now Pay Later 2025
(25 March 2025)
https://www.fintechfutures.com/press-releases/buy-now-pay-later-global-business-report-2025
accessed 23 April 2025
Mastercard,
BNPL in Africa: New Patterns and Observations 2024
(Mastercard Insights Africa 2024)
McKinsey & Company,
Trends in the Informal Economy in Sub-Saharan Africa 2024
(McKinsey Global Institute 2024)
World Health Organization,
Economic Strain and Psychological Well-being: An Worldwide View
(WHO Data Brief 2024)
https://www.who.int/health-topics/mental-health
accessed 23 April 2025
I hope for an immensely productive and successful week coming up for you!
♔ —- ♔ —- ♔ —- ♔ —- ♔
Dr. Maxwell Ampong acts as the CEO of the company mentioned.
Maxwell Investments Group
He serves as an Honorary Curator at the Ghana National Museum and acts as the Official Business Adviser for Ghana’s biggest agricultural trade union, which falls under the umbrella of the country’s Trade Union Congress (TUC). He is also the founder of
WellMax Inclusive Insurance
and
WellMax Micro-Credit
Dr. Ampong contributes articles on current economic issues and offers broader viewpoint essays.
‘Entrepreneur In You’
is operated under the supervision of the
Africa School of Entrepreneurship
, part of the Maxwell Investments Group initiatives.
Disclaimers: The perspectives, insights, and viewpoints shared within this piece are exclusively held by Dr. Maxwell Ampong, representing his personal standpoint rather than an endorsement from Maxwell Investments Group or any related entities’ policies, positions, or ideologies. Policy interpretations mentioned herein are presented as per individual understanding and do not mirror the group’s structured viewpoint. This publication serves purely educational ends and does not act as guidance on legal matters, finance management, or investments; thus, individuals are encouraged to consult with professionals prior to taking action influenced by these details. Maxwell Investments Group will bear neither accountability nor fault concerning inaccuracies present within this document or outcomes arising from actions executed following the conveyed data.
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