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 - Q1 2023 Update

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 - Q1 2023 Update

Report Description

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

According to PayNXT360, BNPL payments in the country are expected to grow by 22.0% on an annual basis to reach US$2,531.1 million 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 country will increase from US$2,075.2 million in 2022 to reach US$4,525.2 million by 2028.

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 PayNXT360 estimates, 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, PayNXT360 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, PayNXT360 expects the service to garner traction among consumers from the short-term perspective.

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.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in UAE through 57 tables and 71 charts. Below is a summary of key market segments:

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 – Loan 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 Buy Now Pay Later Market Share Analysis by Key Players

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

Reasons to buy

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2019-2028). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.

• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.

• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.

• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.

• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in UAE.