Domestic BNPL firms are expanding their regional operations to accelerate growth rates as consumer acceptance increases

DUBLIN, Feb. 10, 2023 (GLOBE NEWSWIRE) —

“UAE Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs on BNPL Market Size, End-Use Industry, Market Share, Product Analysis, Business Model, Demographics – Q1 2023 Update”

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BNPL payments are projected to grow at an annual rate of 22.0%, reaching $2,531.1 million by 2023.

The BNPL payments industry in the United Arab Emirates has registered strong growth over the past four quarters, backed by increased e-commerce penetration.

The medium to long-term growth story for the BNPL industry in the United Arab Emirates remains strong. BNPL payments adoption is expected to grow steadily over the forecast period, at a CAGR of 12.3% from 2023 to 2028. The country’s BNPL gross merchandise value will increase from $2,075.2 million in 2022 to $4,525.2 million in 2028.

A robust internet infrastructure coupled with a thriving e-commerce market and digital payments ecosystem supports the growth of the buy now pay later (BNPL) industry in the United Arab Emirates (UAE). More consumers will shop online in 2022 than in 2021, a trend that has translated into higher adoption of the BNPL scheme across the UAE region.

In 2022, more than 37% of consumers in the UAE have used BNPL payment schemes. This is significantly higher than the 24% who used the BNPL option a year ago.

UAE consumers are using BNPL schemes across a wider range of product categories

As interest rates on credit cards in the UAE rise, more consumers are flocking to zero-percent BNPL plans offered by fintechs in the country such as Tabby and Tamara.

With increasing adoption, the BNPL program is finding new and broader product categories. Consumers are no longer just using payment options to purchase smartphones. They are even willing to buy air tickets through BNPL payment method. As a result, providers like Cashew are working with travel partners to allow travelers to receive up to AED50,000 in BNPL credits on air tickets.

With consumers willing to finance more cross-category purchases, consumer behavior is opening doors to new industries for BNPL providers in the UAE. As such, the publisher expects suppliers to enter the UAE’s tourism, education, insurance and healthcare markets within the next three to four years. In the short to medium term, this will continue to support industry growth and consumer adoption.

Domestic BNPL firms are expanding their regional operations to accelerate growth rates as consumer acceptance increases

Amid growing competition in the domestic market, the UAE-based BNPL provider is now targeting growth in other regional countries to drive the next growth phase of its deferred payment services.

In September 2022, Tabby, a leading UAE-based BNPL provider, announced that it is expanding into the Egyptian market. In the UAE, the company works with many leading brands including Faces, In Your Shoe, Ariika, Marcqa, Floward and Lacoste, among others.

The company, which has more than 2 million active shoppers in the Middle East, has decided to expand in Egypt after securing $275 million in funding from global and regional investors since its inception.

In October 2022, the company also entered into a strategic partnership with YouGotaGift, one of the region’s leading digital gift card marketplaces. Under the partnership, the two companies will allow consumers and shoppers to purchase gift cards using Tabby’s BNPL payment method.

The collaboration coincides with the end-of-year holidays and gift-giving season approaching in the UAE. So publishers are hoping the service will win over consumers in the short term.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. This report provides more than 75 KPIs at country level for a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It segments the market opportunities by business model type, sales channel (offline and online), and distribution model. Additionally, it provides an overview of the dynamics of consumer behavior and retail spending in the UAE. KPIs in value and volume provide insight into end market dynamics.

Research methodology is based on industry best practice. Its unbiased analysis leverages a proprietary analytics platform to provide a detailed view of emerging business and investment market opportunities.

scope

UAE Buy Now Pay Later Market Share Analysis of Key Players

• tabby cat

• laugh at

• Postpay

• Tamara

• cashew payment

• Aramex Smart

• rise

• Postpaid

UAE BNPL Market Size and Spending Patterns 2019-2028

• Gross merchandise value trend analysis

• Average value trend analysis per transaction

• Trading Volume Trend Analysis

UAE Buy Now Pay Later Revenue Analysis, 2019-2028

• Buy Now Pay Later

• Buy Now Pay Later Share by Income

• Buy Now Pay Later Merchant Commission Income

• Buy Now Pay Later Revenue based on Missed Payment Fee Revenue

• Buy Now Pay Later Earnings from Pay Now and Other Earnings

UAE Buy Now Pay Later Operational KPIs and Statistics, 2019-2028

• Buy Now Pay Later Active Consumer Group

• Buy Now Pay Bad Debt Later

UAE BNPL by use 2019-2028

• Convenience – short-term loans

• Credit – Loan Term Loan

UAE BNPL by Business Model 2019-2028

• Both parties (BNPL provided by retailer)

• Tripartite BNPL for sale

UAE BNPL in Merchant Ecosystem 2019-2028

• open loop system

• closed loop system

2019-2028 UAE BNPL Distribution Model Analysis

• stand-alone

• Banks and Payment Service Providers

• market

UAE BNPL Channel Analysis, 2019-2028

• online channel

• Sales channels

UAE Retail Shopping Buy Now Pay Later: Market Size and Forecast 2019-2028

• 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 2019-2028

• Gross merchandise value trend analysis

• Average value trend analysis per transaction

• Trading Volume Trend Analysis

UAE Travel/Entertainment Buy Now Pay Later: Market Size and Forecast 2019-2028

• Gross merchandise value trend analysis

• Average value trend analysis per transaction

• Trading Volume Trend Analysis

Buy Now Pay Later Services in UAE: Market Size and Forecast 2019-2028

• Gross merchandise value trend analysis

• Average value trend analysis per transaction

• Trading Volume Trend Analysis

UAE Automotive Industry Buy Now Pay Later: Market Size and Forecast 2019-2028

• 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, 2019-2028

• Gross merchandise value trend analysis

• Average value trend analysis per transaction

• Trading Volume Trend Analysis

UAE Grocery 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

• Sales lift by product category

• share by age group

• share by revenue

• share by gender

• Reason for adoption

For more information on this report, please visit

https://www.researchandmarkets.com/r/3l1tz3-buy-now-pay?w=12

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