UAE Buy Now Pay Later Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

UAE Buy now pay later Market is segmented by Channel (Online and POS), By End User Type (Kitchen Appliances, Other Consumer Electronics, Fashion & Personal Care, Healthcare, Other Products).

Market Snapshot

 uae buy now pay later market size
Study Period: 2018-2027
Base Year: 2021
CAGR: >6 %
uae buy now pay later market share

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Market Overview

Over the course of the COVID-19 pandemic, payment options like PayPal’s Pay in 4, Klarna, Afterpay, QuadPay and Affirm grew increasingly popular in online shops.

Buy now, pay later (BNPL) solutions, which allow consumers to pay in interest-free installments, fixed payment schedule, zero-interest, and fast approval options for customers looking to make purchases. This allows customers to spend more than they can with other payment methods.

As Buy Now Pay Later is a relatively new phenomenon even in 2021, there is not much data available yet on how people use these payment solutions. Most focus on the user demographics younger generations in the UAE are more likely to use BNPL than older generation, for instance. This was also true for the UAE, although older age groups in the UAE did use Buy Now Pay Later much more often in 2020 than they did in 2019.

Scope of the Report

The report offers a complete background analysis of the UAE Buy now, Pays later market, including the analysis and forecast of market size, market segments, industry trends, major players, and growth drivers. UAE Buy now pay later Market is segmented by Channel (Online and POS), By End User Type (Kitchen Appliances, Other Consumer Electronics, Fashion & Personal Care, Healthcare, Other Products).

By Application
Online
POS
By Product Category
Kitchen Appliances
Other Electronic Appliances (TVs, Mobiles, Laptops, Tablets, etc)
Fashion and Personal Care
Healthcare
Other Products

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Key Market Trends

Increase in Adoption of Online Payment Methods Among the People

Due to the increased proliferation of COVID-19 patients around UAE and the increased demand for treatment, people are turning to purchase now pay later services, which is predicted to be a lucrative potential for the buy now pay later platform in the healthcare industry.

The emergence of online payment methods by people in developing countries is speeding up the growth of the purchase now pay later sector. The economical and convenient payment service of buy now pay later platforms, as well as the rise of the e-commerce business in the UAE, are the primary drivers driving the growth of the UAE buy now pay later market trends.

However, the market's expansion is hampered by significant late and returned payment costs. On the contrary, the buy now pay later sector is likely to benefit from an increase in demand for delayed payments for online purchases and an increase in spending on luxury goods among the adult population.

Due to a rise in consumers spending on daily essential products and services at retail outlets via the purchase now pay later platform, the retail goods segment generated the greatest market share in 2020. However, due to rising treatment costs for various severe conditions such as chronic heart disease, cancer, and cardiovascular disorders, the healthcare & wellness category is predicted to grow at the fastest rate throughout the projection period.

Furthermore, due to the increased proliferation of COVID-19 patients around UAE and the increased demand for treatment, people are turning to purchase now pay later services, which is predicted to be a lucrative potential for the buy now pay later platform in the healthcare industry.

uae buy now pay later market trends

Affordable and Convenient Payment Service

The purchase now pay later payment method provides individuals with various advantages, including affordable and convenient payment services, fast credit card fund transfer service at the point of sale platform, and increased personal information security, all of which contribute to the market's growth. 

Furthermore, the purchase now pay later platform supports a QR-code option that allows individuals to make a payment using a scan code and to conduct transactions using UPI techniques, all of which contribute to the market's growth. Furthermore, the buy now pay later platform enables customers to make secure payments without having to swipe their debit cards, boosting market growth in UAE.

Moreover, the purchase now pay later platform provides crucial benefits such as reminders about payback, boosting an individual's credit score, and digitally monitoring transaction details, all of which help to drive the market's expansion around the UAE. 

Retailers and merchants are increasingly using the buy now, pay later payment technology platform because it allows them to improve their revenue by selling lower-cost products at a higher rate and providing an instalment payback option. The benefits that the buy now platform provides to both customers and merchants are propelling the market forward.

 uae buy now pay later market report

Competitive Landscape

The market is moderately fragmented in UAE. Buy now pay later is a useful service for both customers and merchants. BNPL is becoming an increasingly popular method for payment by customers to make purchases in-stores and online. Many merchants are emphasising the use of these point-of-sale and online instalment loans as payment methods, resulting in increased potential for BNPL solution providers. The major players covered in the buy now pay later market report are Tabby, Spotti, Postpay, Tamara etc.,

Recent Development

  • Sep 2021: Abu Dhabi Islamic Bank (ADIB) has partnered with Spotii, a digital payments provider, to introduce the first virtual ‘Buy Now Pay Later’ prepaid card in the UAE. Through this soon to be launched innovative digital solution, customers will be able to make in-store and online purchases with merchants and spread out the cost of their purchases across flexible installment options with zero financing rates, no hidden fees, and additional costs.
  • June 2021: Splitit partners with leading Middle East BNPL provider Tabby, New strategic partnership provides entry into rapidly growing UAE and Saudi markets. Expansion of technology to provide white-label offering accelerates growth opportunities and broadens future revenue streams.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Insights of Technology Innovations in the Market

    6. 4.6 Impact of Covid-19 on the market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Application

      1. 5.1.1 Online

      2. 5.1.2 POS

    2. 5.2 By Product Category

      1. 5.2.1 Kitchen Appliances

      2. 5.2.2 Other Electronic Appliances (TVs, Mobiles, Laptops, Tablets, etc)

      3. 5.2.3 Fashion and Personal Care

      4. 5.2.4 Healthcare

      5. 5.2.5 Other Products

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Tabby

      2. 6.2.2 Spotti

      3. 6.2.3 Postpay

      4. 6.2.4 Tamara

      5. 6.2.5 Cashew Payments

      6. 6.2.6 Aramex Smart

      7. 6.2.7 Rise

      8. 6.2.8 Afterpay

      9. 6.2.9 Quadpay

      10. 6.2.10 Paypal

      11. 6.2.11 Klarna*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The UAE Buy Now Pay Later Services Market market is studied from 2018 - 2027.

The UAE Buy Now Pay Later Services Market is growing at a CAGR of >6% over the next 5 years.

Tabby, Spotti, Postpay, Tamara, Cashew Payments are the major companies operating in UAE Buy Now Pay Later Services Market.

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