UAE Buy Now Pay Later Business and Investment Opportunity Report 2022: UAE-based BNPL Startups are Raising Funding Rounds to Support the Expansion of their Firms Across the Region

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Dec 16, 2022, 06:15 ET

DUBLIN, Dec. 16, 2022 /PRNewswire/ -- The "UAE Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 67.9% on an annual basis to reach US$3,183.4 million in 2022.

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 33.9% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$1,895.6 million in 2021 to reach US$18,341.5 million by 2028.

The United Arab Emirates (UAE) has experienced a steady demand for buy now pay later (BNPL) services. Easy accessibility to credit, consumer appeal, and the assurance of zero interest have been the major growth drivers for the BNPL industry across the United Arab Emirates and the Middle East region.

Over the next three to four years, the BNPL market is expected to grow 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 more and more saturated as big banks, new entrants, and payment schemes continue to seek market share.

The publisher also believes banks are well-positioned to enter the BNPL market in the UAE. With their experience in regulatory compliance, credit underwriting, and access to a large customer base, the entry of banks into the BNPL sector can further disrupt the fast-growing industry in the Middle East.

Moreover, as pure-play BNPL players enhance user engagement and scale their services, the publisher expects firms to move towards a super app strategy that might combine financing, payments, retail, and other banking services.

Regional BNPL players are expanding operations in the UAE amid the growing demand among consumers

According to a survey report from Checkout.com, 31% of UAE consumers are planning to use the BNPL payment in 2022, which is the highest across the Middle East region. Consequently, to tap into the growing demand among UAE consumers, regional players are expected to expand operations in the country.

In June 2022, Tamara, the Saudi Arabia-based BNPL firm, announced that the firm is expanding operations in the UAE. To provide UAE consumers with the ability to shop at more merchants using the BNPL payment method, the firm is partnering with retailers across sectors. Some of its merchant partners include SHEIN, Fitness Time, Namshi, and many more. This expansion strategy in the UAE comes after the survey report from Checkout.com, which is also the lead investor in the Saudi-based firm.

As the UAE BNPL market continues to grow and expand in size, the publisher expects more regional and global BNPL firms to expand their operations in the country over the next three to four years.

UAE-based BNPL startups are raising funding rounds to support the expansion of their firm across the region

In the Middle East and North Africa region, the BNPL market is expected to record accelerated growth amid growing consumer demand. Consequently, firms are raising funding rounds to capitalize on the trend and expand their market share by extending their presence in more Middle Eastern countries.

In March 2022, tabby, one of the leading BNPL players in the UAE, announced that the firm had raised US$54 million in an extended Series B round, which was led by Sequoia Capital India and STV. While the sector is still in its nascent stages in the GCC region, adoption has surged significantly over the last 12 months, a trend that is expected to continue further. Consequently, tabby is planning to use the funding round to expand its presence in more Middle Eastern countries.

In May 2022, Cashew announced that the firm had raised US$10 million from Mashreq Bank. As part of the investment, the BNPL payment platform of Cashew will be integrated with Neopay, the payments subsidiary of Mashreq. Notably, like tabby, the firm is also expected to strengthen its presence in the MENA region from the short to medium-term perspective. Mashreq is expected to support Cashew to launch services in Egypt in Q4 2022.

As competition continues to intensify and the market grows in the MENA region, more firms are expected to raise investment and boost their presence across the region over the next three to four years.

Firms are innovating with the checkout experience to drive more adoption among consumers

To make the shopping experience more seamless and convenient, BNPL providers are innovating the consumer checkout experience to make their products more attractive for users in the UAE. For instance,

In July 2022, Postpay, a Dubai-based BNPL provider, announced the launch of One by Postpay, the service allowing consumers to bypass the usual checkout steps, thereby letting them buy products directly from the product page across major e-commerce brands.

Notably, the unified checkout experience launched by the firm is expected to be five times faster than any other regional checkout experience.

With shoppers' expectations around online shopping changing, these innovations in the payments space are expected to become a critical factor for customer acquisition among players in the country over the next three to four years.

Scope

UAE BNPL Market Size and Spending Pattern

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

UAE Buy Now Pay Later Operational KPIs

Buy Now Pay Later Revenues, 2019 - 2028
Buy Now Pay Later Share by Revenue Segments
Buy Now Pay Later Merchant Commission, 2019 - 2028
Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
Buy Now Pay Later Accounts, 2019 - 2028
Buy Now Pay Later Bad Debt, 2019 - 2028

UAE Buy Now Pay Later Market Share Analysis by Key Players (Tabby, Postpay, Zip, Tamara, Spotii)

UAE Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

Online Channel
POS Channel

UAE Buy Now Pay Later in Retail Shopping: Market Size and Forecast

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

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

UAE Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

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

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

UAE Buy Now Pay Later in Other: 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

Buy Now Pay Later Sales Uplift by Product Category
Buy Now Pay Later Spend Share by Age Group
Buy Now Pay Later Gross Merchandise Share by Income
Buy Now Pay Later Gross Merchandise Value Share by Gender
Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Companies Mentioned

Tabby
Spotti
postpay
Tamara
Cashew Payments
Aramex Smart
Rise
Afterpay

For more information about this report visit https://www.researchandmarkets.com/r/hc3ij7

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