UAE Buy Now Pay Later Industry Outlook Report 2022-2027: Emergence of BNPL Lending Startups Going Beyond the Typical BNPL Card Issuance Model

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Jan 22, 2023, 09:50 ET

DUBLIN, Jan. 22, 2023 /PRNewswire/ -- 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 such 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

Overview of Global BNPL Industry
Presence of BNPL Players Across Globally
Disruptors of Credit card Globally
Key Features and Development in UAE Buy Now Pay Later Market
How a Buy Now Pay Later Transaction Happens
Key Trends of UAE Buy Now Pay Later Industry
Ecosystem of Major Entities in Buy Now Pay Later Industry in UAE
Growth Drivers of UAE Buy Now Pay Later Market
Porter's Five Force Analysis of the UAE Buy Now Pay Later Market
Trends and Developments in 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
Role of Government and Regulations in the UAE Buy Now Pay Later Industry
Impact of COVID-19
Adoption Rationale of Consumers towards Buy Now Pay Later Services
Cross Comparison of BNPL players on major decision making parameters for brand preference
Consumer Persona Analysis
Investment Analysis of Major Players in the BNPL Space from 2016 to 2021
UAE BNPL Market Sizing on the basis of number of Number of transaction, revenue and average order value.
UAE BNPL Market Segmentation (By Mode of Payment, By Type of End User, By geography and by age group).
Company profile of major BNPL players operating in the ecosystem (Operational and Financial Parameters, Company Overview, Business Strategy, Marketing Strategy, Recent Developments, Key Partnerships, Key Fitness Partners, Product Portfolio, Key collaboration, Cost Structure and Challenges).
Analyst Recommendations
Industry Speaks

UAE Buy Now Pay Later Industry Players/Ecosystem

BNPL Players (Supply Side)

Tabby
Tamara
Spotii
Aramex
Afterpay
Rise
Cashew
Postpay
Souqalmal

Lifestyle Merchants (Demand Side)

Amazon
SHEIN
The Body Shop
Adidas
Actan
Swarovski Ebrahim Shop
Babytonia

Food Merchants (Demand Side)

Healthy life
Golden Tamper
Karam Alnakhil
Mawared
Payment System Operators
Simpl SamsungPay
Apple Pay
VISA
Payit
Mastercard
Gpay

Regulators and Facilitators

Dubai Financial Authority Services
Financial Services Regulatory Authority

Key Segments Covered in UAE Buy Now Pay Later Industry

Time Period Captured in the Report:

Historical Period: 2019-2022
Forecast Period: 2023-2027F

By Mode of Payments

Online
Offline

By Type of End User

Ecommerce Retail
Consumer Electronics
Food Aggregators
Travel Aggregators

By Geography

Dubai,
Sharjah
Abu Dhabi

By Age Group of Consumers

15-30 years
30-40 years
40-50 years
Above 50 years
Adoption Rationale of Consumers towards Buy Now Pay Later Services
Cross Comparison of BNPL players on major decision making parameters for brand preference
Consumer Persona Analysis

For more information about this report visit https://www.researchandmarkets.com/r/52i3vf

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