UAE Buy Now Pay Later Industry Outlook Report 2022-2027: Adoption of Cashless Society, Increasing Genz & Millennials Population Shifting Preference Towards Easy Interest Free Extra Credit - ResearchAndMarkets.com
The "UAE Buy Now Pay Later Industry Outlook to 2027" report has been added to ResearchAndMarkets.com's offering.
UAE BNPL market expanded with substantial growth in between 2017 and 2022 with massive expansion in the adoption of BNPL as the mode of payment due to rising industry valuation, trend of contactless payments and the emergence of BNPL lending startups going beyond the typical BNPL card issuance model.
The primary factors driving the market growth is the emergence of instant payment anytime and anywhere, rising internet penetration in the country, growing awareness among the users, controlled, secured and efficient transactions with convenience of use and a highly rewarding experience provided by the market players to their users.
Several startups and global BNPL players are offering their innovative products and deferred payment services for consumers in the UAE. Moreover, the adoption from merchants is also on the rise as more and more consumers are demanding the BNPL payment method for both in-store as well as online purchases.
These payments are assisted by advanced technology and are, therefore, quick, simple and convenient. On the other hand, consumers too are increasingly being drawn to digital payments due surging adoption of contactless payments post COVID-19 which is also contributing in the growth of BNPL market by increasing their userbase.
In the UAE, the global pandemic has resulted in a shift in consumer spending habits and accelerated adoption of online shopping platforms. This shift in the overall consumer behavior, along with the rise of digital payment solutions, is resulting in buy now, pay later (BNPL) becoming one of the fastest-growing payments methods in the country.
As more and more people across India, including people in rural areas, use smartphones, they get increasingly exposed to digital payment modes. Gen-Zs and millennials are already comfortable with using them as they grew up with technology. Merchants are linking themselves to new-age online payment gateways to allow more and more consumers to access and shop for their products easily.
Thus, as digital payment modes are forming the bridge between multiple consumers and merchants, they're undergoing exponential growth. As the digital payments landscape continues to evolve in the UAE, BNPL firms along with global payment giants are launching innovative, first-of-its-kind shop anywhere BNPL schemes.
In November 2021, Postpay, a BNPL platforms in UAE, entered into a strategic collaboration with the Commercial Bank of Dubai and Mastercard. The firm has partnered strategically to launch the region's first-of-its-kind shop anywhere BNPL scheme, with the aim to drive digital payments growth in the UAE.
The shop anywhere BNPL scheme allows consumers to purchase online or in-store at thousands of physical stores, such as Decathlon, GAP, Level Shoes, Ace, Apple, Azadea, H&M, Home Center, Mumzworld, Sephora, Sharaf DG, Shein, and Zara.
Competitive Landscape in UAE Buy Now Pay Later Industry
Traditionally, UAE BNPL Industry is dominated by few major players in the country suc as Tabby, Tamara, Spotii, Cashew, Postpay among others. As the competition continues to intensify in the UAE BNPL market, firms are developing new products and features such as virtual prepaid cards.
In September 2021, UAE-based Spotti, which was acquired by global BNPL platform Zip in May 2021, announced that the firm had entered into a strategic alliance with the Abu Dhabi Islamic Bank. Under the collaboration with the Abu Dhabi Islamic Bank, Spotti launched the first virtual BNPL prepaid card in the UAE.
UAE Buy Now Pay Later Market Future Outlook and Projections
UAE BNPL market is expected to expand with a single digit CAGR in between 2022 and 2027 on the basis of revenue generated. It is anticipated that BNPL industry will grow at a substantial rate owing to factors such as due to wider acceptability at shops and better product offerings in a competitive landscape in the coming years.
UAE has been culturally conservative towards BNPL and it is always seen as a debt trap instrument. But new-age start-ups are very focused on changing this mentality by creating awareness about how BNPL can be used for daily expenditure. Many new FinTechs will be entering the UAE BNPL space by offering BNPL cards to individuals and corporates.
All the BNPL Players in this space are trying to attract customers through their digital offerings and will witness significant growth in new BNPL customers in the coming years. BNPL Players are also focusing on bringing out co-branded cards with features and rewards dedicated to a segment.
Some global players are providing best-in-class BNPL solutions with the latest mobile application features such as digital onboarding, enhanced UX/UI, single click payment, QR, token-based payments, dispute resolution, in-app support and spend analysis.
Traditional players need to take a cue from these players to enhance their offerings in the coming future. Players in this sector need to focus more on building the omnichannel ecosystem to cater to both the offline and online market.
Key Topics Covered in the Report
UAE Buy Now Pay Later Industry Players/Ecosystem
BNPL Players (Supply Side)
Lifestyle Merchants (Demand Side)
Food Merchants (Demand Side)
Regulators and Facilitators
Key Segments Covered in UAE Buy Now Pay Later Industry
Time Period Captured in the Report:
By Mode of Payments
By Type of End User
By Age Group of Consumers
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