Middle East Buy Now Pay Later Market: Current Analysis and Forecast (2024-2032)
Emphasis on Channel Type (Online and POS), Payment Methods (Credit Cards and Debit Cards), Industry Verticals (Retail & E-commerce, Travel and Hospitality, Healthcare, Electronics, and Others); Region/Country.
Middle East Buy Now Pay Later Market Size & Forecast
The Middle East Buy Now Pay Later Market was valued at USD 12.12 Billion in 2023 and is expected to grow at a robust CAGR of around 32.5% during the forecast period (2024-2032).
Middle East Buy Now Pay Later Market Analysis
Buy Now Pay Later (BNPL) is a financial service that allows consumers to make purchases and defer payment over time, typically in installments, without incurring interest charges if paid within a specified period. The Middle East Buy Now Pay Later Market is expected to grow at a substantial CAGR of 32.5% during the forecast period, owing to increasing government support. For example, in Saudi Arabia, the government has introduced policies to boost digital payments and financial inclusion. These initiatives include regulatory reforms to facilitate BNPL services and incentives for fintech companies to expand their operations within the country. Moreover, the UAE has launched strategic initiatives like the UAE Vision 2021 and the Dubai Future Agenda, prioritizing digital transformation and innovation in financial services. Such governmental backing fosters a conducive environment for BNPL providers to thrive, attracting investments and accelerating regional market growth. As a result of these supportive measures, BNPL services are poised to penetrate deeper into various sectors of the Middle Eastern economy, offering consumers greater payment flexibility and driving higher adoption rates in retail, e-commerce, and beyond.
The Middle East Buy Now Pay Later Market Segmentation
Based on Channel Type, the Middle East Buy Now Pay Later Market is segmented into Online and POS. The Online segment held the dominant market share in 2023, driven by the rapid growth of e-commerce activities in the region. The convenience and flexibility offered by BNPL services in online transactions have appealed to a broad consumer base, accelerating adoption across platforms like Souq.com and Noon.
By payment methods, the Middle East’s Buy Now Pay Later Market is segmented into credit cards and debit cards. The Debit Cards segment held the dominant market share in 2023 due to widespread consumer preference for utilizing funds directly from their bank accounts rather than accruing credit card debt. This aligns with regional banking practices and cultural attitudes towards financial management.
By Industry Verticals, the Middle East Buy Now Pay Later Market is segmented into Retail & E-commerce, Travel and Hospitality, Healthcare, Electronics, and Others. The Retail & E-commerce segment led the market in 2023, buoyed by the surge in online shopping post-pandemic. Retail giants like Majid Al Futtaim and Emaar Malls have integrated BNPL options to enhance customer engagement and boost sales volumes.
Saudi Arabia held a dominant share of the market in 2023
Saudi Arabia held a dominant share of the market in 2023. The country’s economic strength and increasing disposable incomes fueled consumer spending through BNPL services. For instance, local fintech companies like Tamara and Tamweel partnered with major retailers to offer flexible payment options, attracting a growing number of young consumers eager to embrace digital finance solutions. This trend underscored Saudi Arabia’s leadership in shaping the BNPL landscape across the region.
Middle East Buy Now Pay Later Industry Overview
The Middle East Buy Now Pay Later Market is competitive and fragmented, with the presence of several regional and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some major players operating in the market include Affirm, Inc., Lipa Later, Payflex, postpay, Shahry, Spotti, Sympl, Tabby FZ LLC, Tamara, and Zip Co Limited.
Middle East Buy Now Pay Later Market News
In January 2022, Lipa Later, a Kenyan BNPL startup, raised USD 12 million in pre-series A funding to expand its footprint across Africa. The funding will support the company in scaling its buy-now-pay-later services to existing users and bolstering its presence in current markets such as Kenya, Uganda, and Rwanda. Additionally, Lipa Later plans to venture into new markets, including Nigeria, South Africa, Ghana, and Tanzania.
In February 2022, Postpay, a UAE-based fintech firm, secured a debt financing agreement with the Commercial Bank of Dubai (CBD) to diversify its range of financial products. This collaboration exemplifies the growing trend of partnerships between fintech firms and traditional banks, leveraging their combined expertise to enhance the spectrum of financial services available in the market.
Middle East Buy Now Pay Later Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The Middle East Buy Now Pay Later Market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Middle East Buy Now Pay Later Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the Middle East Buy Now Pay Later Market were the three major steps undertaken to create and analyze the adoption of Middle East Buy Now Pay Later in major countries. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Middle East Buy Now Pay Later Market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the Middle East Buy Now Pay Later Market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Middle East Buy Now Pay Later Market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as channel type, payment methods, and industry verticals. Further country-level analyses were conducted to evaluate the overall adoption.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Middle East Buy Now Pay Later Market. Further, we conducted factor analysis using dependent and independent variables such as channel type, payment methods, and industry verticals of the Middle East Buy Now Pay Later Market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Middle East Buy Now Pay Later Market.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Middle East Buy Now Pay Later Market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the Middle East Buy Now Pay Later Market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the Middle East Buy Now Pay Later Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and arrive at precise statistical numbers for each segment and sub-segment of the Middle East Buy Now Pay Later Market. Data was split into several segments and sub-segments after studying various parameters and trends in the areas of channel type, payment methods, and industry verticals in the Middle East Buy Now Pay Later Market.
The main objective of the Middle East Buy Now Pay Later Market Study
The current & future market trends of the Middle East Buy Now Pay Later Market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a country level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the Middle East Buy Now Pay Later Market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of the channel type, payment methods, and industry verticals.
- Define and analysis of the regulatory framework for the Middle East Buy Now Pay Later
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the Middle East Buy Now Pay Later Market for the major countries.
- Company profiles of the Middle East Buy Now Pay Later Market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive country level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the Middle East Buy Now Pay Later Market?
Q2: What are the driving factors for the growth of the Middle East Buy Now Pay Later Market?
Q4: What are the emerging technologies and trends in the Middle East Buy Now Pay Later Market?
Q5: Which country will dominate the Middle East Buy Now Pay Later Market?
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