The slogan 'Buy now, pay later' is no longer just a marketing tool; it has become one of the key drivers reshaping spending and saving behavior in Egypt, amid declining purchasing power and rising living costs in recent years.

This shift is reflected in an unprecedented surge in non-bank financing, which is playing an increasing role in funding individuals' needs, alongside growing regulatory concerns over the risks of default and excessive borrowing.

Record growth in financing

Latest data reveals that non-bank financing portfolios reached about 417 billion Egyptian pounds by the end of 2025, while cumulative financing provided to individuals amounted to 1.4 trillion pounds, equivalent to about 54% of total individual financing.

The beneficiary base has also expanded significantly, with 2,532 companies operating in the sector serving about 64 million customers.

Consumer finance was the fastest-growing, rising to 96.3 billion pounds during 2025, achieving an annual growth of 57%, indicating increasing household reliance on installment plans to finance their daily needs.

“Buy now, pay later”.. A slogan that changed the lives of Egyptians after the decline in purchasing power, but it also began to scare the state.

📌 417 billion pounds in financing portfolios, and 1.4 trillion pounds in cumulative financing, i.e. 54% of all individual financing in Egypt

▪️ More than 2,532 companies serving 64 million customers, and consumer finance alone jumped… pic.twitter.com/4SvWVmEu4p

— Al Arabiya Business (@AlArabiya_Bn) July 16, 2026

Why is the sector growing so fast?

Observers believe that inflationary pressures and declining purchasing power have driven a wide segment of consumers to rely more on quick financing solutions, especially with the spread of digital finance applications and the ease of obtaining installment plans compared to traditional bank loans.

The expansion of fintech companies has also contributed to accelerating the sector's growth, by offering financing services characterized by fast approval and less complex procedures.

Fears of debt inflation

Despite strong growth, the rapid expansion of the sector has raised questions about the potential increase in individual indebtedness, in addition to complaints from some clients regarding debt collection methods.

Concerns have also emerged about the transfer of part of the credit risk to the financial sector if default rates rise significantly.

Regulatory action

In response to these concerns, the Financial Regulatory Authority tightened the regulations governing the sector, affirming that financing companies must comply with Basel III standards for risk management, and requiring them to conduct a creditworthiness assessment before granting financing.

The Authority also established a regulatory framework for debt collection companies, ensuring they are subject to oversight and limiting undisciplined practices.

On the other hand, the Central Bank of Egypt obliged banks to obtain its approval before participating in some securitization operations and sukuk issuances related to financing companies, in addition to ensuring that companies are registered with I-Score for credit inquiry.

Between consumer protection and market stability

Analysts believe that the success of the consumer finance market will depend not only on continued growth, but also on the ability of regulators to strike a delicate balance between expanding financing opportunities for individuals and limiting the risks of over-borrowing.

As the sector continues to expand, the key question remains: Are the new controls sufficient to protect consumers from falling into the debt trap, or will rapid growth force a new round of legislation in the coming years?

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