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Dublin–(Business Wire) – he “Buy Now Pay Later Business and Investment Opportunities in the UAE – 75+ End-Use Industry Trends on Buy Now Pay Later KPIs, Operational KPIs, Market Shares, Retail Product Dynamics and Consumer Demographics – Q3 2022 Update” report added to ResearchAndMarkets.com’s supply.
BNPL payments are expected to grow at an annual rate of 67.9% to reach $3,183.4 million by 2022.
The medium to long-term growth story for the BNPL industry in the United Arab Emirates remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, with a CAGR of 33.9% during 2022-2028. The country’s BNPL gross merchandise value will increase from $1,895.6 million in 2021 to $18,341.5 million in 2028.
Demand for buy now pay later (BNPL) services is steady in the United Arab Emirates (UAE). Easy access to credit, consumer appeal and zero interest rate guarantees have been the key growth drivers for the BNPL industry in the United Arab Emirates and the Middle East.
Over the next three to four years, the BNPL market is expected to develop across different industries, including banking, travel, luxury retail, trading, insurance, healthcare, and hospitality. This is because the BNPL market in the United Arab Emirates (UAE) is becoming increasingly saturated as big banks, new entrants and payment schemes continue to seek market share.
The publisher also believes that the bank is well-positioned to enter the UAE BNPL market. With experience in regulatory compliance, credit underwriting and access to a large client base, the bank’s entry into the BNPL space could further disrupt the fast-growing industry in the Middle East.
Furthermore, as pure-play BNPL players increase user engagement and expand their services, publishers expect companies to shift to a super-app strategy that may combine financing, payments, retail and other banking services.
Regional BNPL players are expanding in the UAE as consumer demand grows
According to a survey report by Checkout.com, 31% of UAE consumers plan to pay with BNPL by 2022, the highest rate in the entire Middle East. Hence, regional players are expected to expand their presence in the country in order to meet the growing demands of UAE consumers.
In June 2022, Tamara, a Saudi Arabia-based BNPL company, announced that it was expanding its presence in the UAE. To enable UAE consumers to shop at more merchants using the BNPL payment method, the company is working with retailers across industries. Some of its business partners include SHEIN, Fitness Time, Namshi and many more. This expansion strategy in the UAE follows an investigative report by Checkout.com, which is also a major investor in the Saudi-based company.
As the UAE BNPL market continues to grow and expand in size, the publisher expects more regional and global BNPL companies to expand their presence in the country over the next three to four years.
UAE-based BNPL startup is raising funds to support its company’s expansion in the region
In the Middle East and North Africa region, the BNPL market is expected to witness accelerated growth amid rising consumer demand. Therefore, companies are raising funds to capitalize on this trend and expand their market share by expanding their presence in more Middle Eastern countries.
In March 2022, Taby, one of the leading BNPL players in the UAE, announced that the company had raised $54 million in an extended Series B round led by Sequoia Capital India and STV. While the industry is still in its infancy in the GCC region, adoption has surged significantly over the past 12 months and this trend is expected to continue further. Therefore, tabby plans to use this round of financing to expand its business in more Middle Eastern countries.
In May 2022, Cashew announced that the company had raised $10 million from Mashreq Bank. As part of the investment, Cashew’s BNPL payments platform will be integrated with Mashreq’s payments subsidiary Neopay. Notably, like Tabby, the company is also poised to strengthen its presence in the MENA region in the short to medium term. Mashreq is expected to support Cashew’s launch in Egypt in Q4 2022.
With increasing competition and market growth in the MENA region, more companies are expected to increase their investments and expand their presence in the region over the next three to four years.
Companies are innovating through the checkout experience to drive greater consumer adoption
To make the shopping experience more seamless and convenient, BNPL providers are innovating the consumer checkout experience to make their products more attractive to UAE users. E.g,
In July 2022, Dubai-based BNPL provider Postpay announced the launch of One by Postpay, a service that allows consumers to bypass the usual checkout steps, allowing them to purchase products directly from the product pages of major e-commerce brands.
Notably, the unified checkout experience the company is launching is expected to be five times faster than any other regional checkout experience.
These innovations in payments are expected to be key factors in customer acquisition for players in the country over the next three to four years as shoppers’ expectations for online shopping change.
scope
UAE BNPL Market Size and Spending Patterns
Gross merchandise value trend analysis
Average value trend analysis per transaction
Trading Volume Trend Analysis
UAE buy now pay later operation KPI
Buy Now Pay Later Income, 2019-2028
Buy Now Pay Later Share by Income
2019-2028, Buy Now, Pay Merchant Commission Later
2019 – 2028 Buy Now, Pay Later Missed Payment Fee Income
Pay Now and Other Revenues 2019-2028
2019 – 2028 Buy Now Pay Later Account
2019-2028 Buy Now Pay Bad Debt
UAE Buy Now Pay Later Key Players (Tabby, Postpay, Zip, Tamara, Spotii) Market Share Analysis
UAE Buy Now Pay Later Channel Spend Analysis: Market Size and Forecast
online channel
Sales channels
Buy Now Pay Later in UAE Retail Shopping: Market Size and Forecast
Gross merchandise value trend analysis
Average value trend analysis per transaction
Trading Volume Trend Analysis
UAE Home Improvement Buy Now Pay Later: Market Size and Forecast
Gross merchandise value trend analysis
Average value trend analysis per transaction
Trading Volume Trend Analysis
Buy Now Pay Later for Leisure and Entertainment in the UAE: Market Size and Forecast
Gross merchandise value trend analysis
Average value trend analysis per transaction
Trading Volume Trend Analysis
Buy Now Pay Later in Healthcare and Wellness in UAE: Market Size and Forecast
Gross merchandise value trend analysis
Average value trend analysis per transaction
Trading Volume Trend Analysis
UAE Buy Now Pay Later: Market Size and Forecast
Gross merchandise value trend analysis
Average value trend analysis per transaction
Trading Volume Trend Analysis
Analysis of Buy Now Pay Later Consumer Attitude and Behavior in the UAE
Buy Now Pay Later Sales Lift by Product Category
Buy Now Pay Later Consumption Share by Age Group
Buy Now Pay Later Share of Gross Merchandise by Revenue
Buy Now Pay Later share of total merchandise value by gender
Buy Now Pay Later Reasons for Adoption Total Merchandise Value Analysis
mentioned company
tabby cat
attractions
Postpay
Tamara
cashew payment
Aramex Smart
rise
After payment
For more information on this report, please visit https://www.researchandmarkets.com/r/fqr4n0
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