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Dublin–(Business Wire) – This “UAE Buy Now Pay Later Industry Outlook to 2027” report added to ResearchAndMarkets.com’s supply.
The UAE BNPL market is expected to grow substantially between 2017 and 2022, with adoption of BNPL as a payment method expanding substantially due to rising industry valuations, the trend towards contactless payments, and the emergence of BNPL lending startups moving beyond the typical BNPL card issuance model.
The major factors driving the growth of the market are the advent of instant payments anytime, anywhere, rising internet penetration in the country, increasing user awareness, controlled, secure, and efficient transactions along with ease of use and highly rewarding experience offered by market players to them user.
Several startups and global BNPL players are offering innovative products and deferred payment services to consumers in the UAE. Additionally, merchant adoption is on the rise as more consumers demand BNPL payment methods for both in-store and online purchases.
These payments are assisted by advanced technology, so they are fast, easy and convenient. On the other hand, consumers are also increasingly attracted to digital payments owing to the surge in adoption of contactless payments post-COVID-19, which is also boosting the growth of the BNPL market by increasing the user base.
In the UAE, the global pandemic has led to a shift in consumer spending habits and accelerated adoption of online shopping platforms. This shift in overall consumer behavior, along with the rise of digital payment solutions, has resulted in Buy Now Pay Later (BNPL) being one of the fastest growing payment methods in the country.
As more Indians, including those in rural areas, use smartphones, they are increasingly exposed to digital payment methods. As technology has evolved, Gen Z and Millennials have gotten used to using them. Merchants are connecting themselves to new-age online payment gateways to allow more and more consumers to easily access and purchase their products.
Consequently, digital payment models are experiencing exponential growth as they bridge multiple consumers and merchants. As the digital payments landscape continues to grow in the UAE, BNPL companies and global payments giants are launching the innovative, first-of-its-kind shop anywhere BNPL programme.
In November 2021, the UAE BNPL platform Postpay reached strategic cooperation with Dubai Commercial Bank and MasterCard. The company launched the region’s first shop anywhere BNPL initiative through a strategic partnership aimed at driving the growth of digital payments in the UAE.
The shop anywhere BNPL program allows consumers to make in-store purchases online or at thousands of physical stores such as Decathlon, GAP, Level Shoes, Ace, Apple, Azadea, H&M, Home Center, Mumzworld, Sephora, Sharaf DG, Shein and Zha pull.
The Competitive Landscape of the Buy Now Pay Later Industry in the UAE
Traditionally, the UAE BNPL industry has been dominated by a handful of major players in the country such as Tabby, Tamara, Spotii, Cashew, Postpay and others. As competition intensifies in the UAE BNPL market, companies are developing new products and features such as virtual prepaid cards.
In September 2021, UAE-based Spotti (acquired by global BNPL platform Zip in May 2021) announced that the company had entered into a strategic alliance with Abu Dhabi Islamic Bank. In partnership with Abu Dhabi Islamic Bank, Spotti has launched the first virtual BNPL prepaid card in the UAE.
UAE buy now pay later market outlook and forecast
Based on revenue generated, the UAE BNPL market is projected to grow at a single-digit CAGR during 2022-2027. The BNPL industry is expected to grow at a respectable rate due to wider acceptance in stores and better offerings in the competitive landscape in the coming years.
The UAE is culturally conservative towards BNPL, which has long been viewed as a debt-trap vehicle. But new-age startups are very focused on changing that mindset by raising awareness of how BNPL can be used for day-to-day spending. Many new fintech companies will enter the UAE BNPL scene by offering BNPL cards to individuals and businesses.
All BNPL players in this space are struggling to attract customers through their digital offerings and will witness a significant increase in new BNPL customers in the coming years. BNPL Players is also focusing on launching co-branded cards with segment-specific features and rewards.
Some of the global players are offering best-in-class BNPL solutions with latest mobile app features like digital onboarding, enhanced UX/UI, click to pay, QR, token based payments, dispute resolution, In-app support and spend analysis.
Traditional players need to take inspiration from these players to enhance their products in the future. Players in the industry need to focus more on building an omni-channel ecosystem to cater to both offline and online markets.
Key Topics Covered in the Report
Global BNPL Industry Overview
Global presence of BNPL players
Disruptor of the global credit card
Key features and developments of the UAE buy now pay later market
How Buy Now Pay Later Transactions Happen
Key trends in the buy now pay later industry in the UAE
An Ecosystem of Major Entities in the UAE Buy Now Pay Later Industry
Growth drivers in UAE buy now pay later market
Porter’s Five Forces Analysis of the UAE Buy Now Pay Later Market
Trends and developments in the UAE buy now pay later market
Issues and challenges in the UAE buy now pay later market
SWOT Analysis of UAE Buy Now Pay Later Market
The role of government and regulation in the UAE ‘buy now pay later’ industry
Impact of COVID-19
Reasons for consumers to adopt buy now pay later services
Cross-comparison of main decision parameters for brand preference among BNPL players
Consumer Persona Analysis
Investment analysis of key players in the BNPL space from 2016 to 2021
UAE BNPL market size is based on deal volume, revenue and average order value.
UAE BNPL Market Segmentation by Payment Method, End User Type, Geography and Age Group.
Company profile of key BNPL players operating in the ecosystem (operational and financial parameters, company profile, business strategy, marketing strategy, recent developments, key partnerships, key fitness partners, product portfolio, key collaborations, cost structure and challenge).
analyst recommendation
industry speak
UAE buy now pay later industry players/ecosystem
BNPL players (supply side)
tabby cat
Tamara
attractions
Alama Express
After payment
rise
cashew
Postpay
Sukarmar
Lifestyle Merchants (Demand Side)
amazon
fortunate
The Body Shop
adidas
Aktan
Swarovski Ibrahim Store
barbedonia
Food Merchant (Demand Side)
healthy lifestyle
Gold pound stick
kalam arnahir
Mavared
payment system operator
Simple Samsung Pay
apple pay
visa
Alipay
MasterCard
Alipay
regulators and facilitators
Dubai Monetary Authority Services
Financial Services Regulatory Authority
Major Segments of Buy Now Pay Later Industries Covered in UAE
Time period captured in the report:
Historical period: 2019-2022
Forecast period: 2023-2027F
by payment method
by end user type
E-commerce retail
Consumer electronics products
food aggregator
travel aggregator
by geography
By consumer age group
15-30 years old
30-40 years old
40-50 years old
over 50 years old
Reasons for consumers to adopt buy now pay later services
Cross-comparison of main decision parameters for brand preference among BNPL players
Consumer Persona Analysis
For more information on this report, please visit https://www.researchandmarkets.com/r/3h5pz8
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