UAE Buy Now Pay Later Business Report 2023: BNPL Payments to Grow by 19.6% to Reach $2.6 Billion in 2023 - Forecasts to 2028

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Nov 17, 2023, 11:15 ET

DUBLIN , Nov. 17, 2023 /PRNewswire/ -- The "UAE Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments in UAE are expected to grow by 19.6% on an annual basis to reach US$2.6 billion in 2023.

Medium to long term growth story of BNPL industry in United Arab Emirates remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 12.3% during 2023-2028. The BNPL Gross Merchandise Value in the UAE will increase from US$2.2 billion in 2022 to reach US$4.7 billion by 2028.

The BNPL payment industry in UAE has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.

The robust Internet infrastructure coupled with the surging e-commerce market and digital payment ecosystems has supported the growth of the buy now pay later (BNPL) industry in the United Arab Emirates (UAE). With more consumers shopping online in 2022, compared to 2021, the trend has translated into a higher adoption of BNPL schemes across the Emirati region.

According to the publisher,, over 37% of consumers have used the BNPL payment schemes in the UAE in 2022. This is much higher, as compared to the 24% who used the BNPL options a year before.

Emirati consumers are using BNPL schemes across a broader set of product categories

With credit card rates rising in the UAE, consumers in increasing numbers are flocking towards the zero-interest BNPL schemes offered by fintech firms such as Tabby and Tamara in the country.

Amid the growing adoption, the BNPL schemes are finding their way to new and a broader set of product categories. Consumers are no longer just using the payment option to buy smartphones. They are even willing to purchase airline tickets through the BNPL payment method. Consequently, providers like Cashew are partnering with travel partners, thereby allowing travellers to access BNPL credit up to Dh 50,000 on airfares.

With the willingness of consumers to fund more of their purchases across categories, consumer behavior is opening doors to new industries for BNPL providers in the Emirates. Consequently, the publisher expects providers to enter the travel, education, insurance, and healthcare market over the next three to four years in the UAE. This will keep supporting the industry growth and the adoption among consumers from the short to medium-term perspective.

Domestic BNPL firms are expanding their regional operations to accelerate growth rate amid rising adoption among consumers

Amid rising competition in the domestic market, UAE-based BNPL providers are now targeting growth in other regional countries to drive the next growth phase of their deferred payment service.

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

With more than two million active shoppers in the Middle East region, the firm has decided to expand in Egypt after securing US$275 million in funding, since inception, from global and regional investors.

In October 2022, the firm also entered into a strategic collaboration with YouGotaGift, one of the leading digital gift card marketplaces in the region. Under the collaboration, the two firms will allow consumers and shoppers to buy gift cards using the BNPL payment method offered by Tabby.

The partnership comes at a time when the year-end holiday and gifting season is about to commence in the Emirates. Thus, the publisher expects the service to garner traction among consumers from the short-term perspective.

Firms are forging strategic alliances to launch new BNPL solutions in the Emirates

With the surging cost of living and rise in prices of products, consumers are finding it difficult to fund their purchases. Consequently, BNPL providers are forging new partnerships to offer BNPL services to consumers in the United Arab Emirates. For instance,

In October 2022, Cashew, one of the leading BNPL services in the Emirates, announced that the firm had entered into a strategic collaboration with du, a telecom provider in the UAE. Under the collaboration, Cashew will offer BNPL solutions on device financing for du's customers. This will enable consumers to purchase devices, at zero-additional cost, which were previously out of their budget.

To accelerate its growth in the domestic market, the firm also announced that it is seeking to raise US$70 million. As part of its mega fund-raising round, the firm is already in negotiations with family offices in Saudi Arabia and venture capital firms in the United States and Singapore. With the demand for BNPL schemes growing in the Emirati market, the publisher expects the firm to receive healthy interest from global investors, including venture capital and private equity firms.

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

It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in UAE. KPIs in both value and volume term help in getting in-depth understanding of end market dynamics.

Scope

UAE Buy Now Pay Later Market Share Analysis by Key Players

Tabby
Spotti
postpay
Tamara
Cashew Payments
Aramex Smart
Rise
Afterpay

UAE BNPL Market Size and Spending Pattern, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

UAE Buy Now Pay Later Revenue Analysis, 2019-2028

Buy Now Pay Later Revenues
Buy Now Pay Later Share by Revenue Segments
Buy Now Pay Later Revenue by Merchant Commission
Buy Now Pay Later Revenue by Missed Payment Fee Revenue
Buy Now Pay Later Revenue by Pay Now & Other Income

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

Buy Now Pay Later Active Consumer Base
Buy Now Pay Later Bad Debt

UAE BNPL by Purpose, 2019-2028

Convenience - Short Term Loans
Credit - Long Term Loans

UAE BNPL by Business Model, 2019-2028

Two-Party (BNPL offered by retailers)
Three-Party BNPL Offering

UAE BNPL by Merchant Ecosystem, 2019-2028

Open Loop System
Closed Loop System

UAE BNPL by Distribution Model Analysis, 2019-2028

Standalone
Banks & Payment Service Providers
Marketplaces

UAE BNPL Analysis by Channel, 2019-2028

Online Channel
POS Channel

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

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

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

Gross Merchandise Value Trend Analysis
Average Value per Transaction Trend Analysis
Transaction Volume Trend Analysis

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

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

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

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Groceries: Market Size and Forecast

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

UAE Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

Sales Uplift by Product Category
Share by Age Group
Share by Income
Share by Gender
Adoption Rationale

For more information about this report visit https://www.researchandmarkets.com/r/s9l3hz

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