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 - Q2 2024 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 - Q2 2024 Update

According to PayNXT360, BNPL payments in the country are expected to grow by 18.5% on an annual basis to reach US$2,459.3 million in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 12.4% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$2,075.2 million in 2023 to reach US$4,410.9 million by 2029.The buy now pay later market is expected to grow at a steady pace over the medium term in the United Arab Emirates. The rising uptake of the payment method among shoppers, coupled with new entrants in the sector, will support the growth trajectory of the market in 2024. Existing BNPL providers are also raising funding rounds from venture capital and private equity firms.

Key Developments in the BNPL Sector in UAE
The buy-now-pay-later (BNPL) sector in the UAE has seen significant product launches and developments, reflecting the increasing demand for flexible payment solutions in the region. Here are the notable highlights:

Product Launches and Innovations

Tabby’s Expansion: Tabby, a leading BNPL provider in the UAE, has expanded its offerings by introducing new features that enhance the shopping experience for consumers. This includes the launch of a loyalty program that rewards users for making purchases through the platform, thereby encouraging repeat usage.
Tamara’s New Features: Tamara, another prominent BNPL player, has introduced features that allow consumers to split their payments into multiple instalments. This flexibility caters to the needs of consumers looking for manageable payment options, especially in a high-inflation environment.

Strategic Partnerships

Global fintech firms are entering the UAE BNPL market with innovative products. For example, Alif launched its financial services suite, including BNPL and remittance services, in September 2023.
BNPL providers are forging strategic partnerships to expand their reach. Tabby partnered with Arabian Automobiles in September 2023 to offer BNPL options for vehicle maintenance and repairs.

Regulatory Changes

In December 2023, the UAE Central Bank announced new regulations for BNPL services.
BNPL businesses must operate as agents of licensed banks or financial institutions with central bank approval.
Fintech companies can offer BNPL services with a minimum capital requirement of AED 5 million.
These developments highlight the rapid growth and evolution of the BNPL industry in the UAE, driven by increasing consumer demand, new market entrants, and regulatory oversight to ensure sustainable growth in the sector.
Consumer Protection Measures - The regulations aim to protect consumers and enhance the overall stability of the financial sector in the UAE.
BNPL providers must implement internal complaint and dispute resolution systems
These guidelines serve as the foundation for further regulatory activities for the BNPL sector in the UAE, ensuring responsible lending practices and consumer protection while allowing for innovation in the industry.

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

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an 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 of emerging business and investment market opportunities.