Installments and BNPL in Egyptian stores: will they boost your sales?

Where do installments stand in Egypt's payment landscape?

dLocal estimates the split of payment methods in Egyptian e-commerce roughly as follows: cash on delivery about 40%, Fawry about 24%, international cards about 15%, digital wallets about 8%, and buy now, pay later about 7%. These are a service provider's estimates, not official statistics, but they show that installments are a small, growing share, not a replacement for other methods.

Who are the main players?

Each company's terms and commissions change, so request the current offer directly.

• valU

  A consumer finance company affiliated with EFG Hermes, offering installment plans of up to 60 months. In 2023 it announced more than 5,000 points of sale and 550 websites in its network. Amazon Egypt has offered payment through it since 2022.

• Sympl

  A buy now, pay later platform with short interest-free plans, targeting debit card holders, which partnered with valU in 2023.

• In the Gulf, similar solutions exist, such as Tabby and Tamara

When do installments help?

Installments mainly suit the following cases. They may not help much with cheap, impulse-buy products, because the commission will eat a significant part of the profit margin.

• High-priced products

  Electronics, home appliances, furniture.

• Customers who have a regular income but not the full amount in cash

• Stores that see high checkout abandonment on expensive products

What does it cost you?

Compare the commission with the expected increase in sales and average order value, and don't settle for a higher number of orders alone.

• A commission on every installment order (varies by company and plan)

• A settlement time that differs from other methods

• More complex cancellations and refunds, because you deal with the finance company, not just the customer

• Contractual requirements and possibly prior approval from the company before activation

How to integrate it into your store

• Product page

  Show the approximate monthly installment ("from X EGP per month"), as it shapes the buying decision before the customer reaches the cart.

• Checkout page

  Add installments as a clear option alongside the other methods.

• API integration

  Via an API or ready-made plugin that takes the customer through the approval flow, then returns them with the order result.

• Edge cases

  What happens if the customer is declined? Or cancels the order? Or returns part of it? Define a flow for each case.

Common mistakes

• Showing an inaccurate installment on the product page, then a different figure at checkout

• Hiding installments at the last step, where they can't influence the purchase decision

• Enabling it on all products without accounting for the commission on low-margin items

• Forgetting to hold shipping until the finance company's approval arrives

How to test its impact

Enable it on the expensive product category only for a set period, and compare with the previous period or a similar category without installments:

• Order completion rate in the category

• Average order value

• Cancellation and return rates

• Net profit after commission

Frequently asked questions

• Do installments replace cash on delivery?

  No, they serve two different groups. It is best to offer both to cover the largest segment.

• Do I bear the risk of a customer not paying?

  Usually the finance company bears this risk under the contract, but read the terms carefully to know when it can be reclaimed from you.

• Is it suitable for a small store?

  Yes, if its products are expensive, provided the company accepts the store and the commission suits your margin.

Sources

• dLocal

  Egypt payment methods.

• valU and Sympl

  Press releases (January 2023).

• PYMNTS

  Amazon Egypt and valU (2022).