UAE Buy Now Pay Later Services Market Size (2024 - 2029)

The market size of the Buy Now Pay Later (BNPL) service in the UAE has been influenced by the increasing popularity of flexible payment options during the COVID-19 pandemic. These solutions, which offer consumers the ability to make purchases in interest-free installments, have gained traction, particularly among younger demographics. While data on the usage of BNPL in the UAE is still emerging, there has been a notable increase in adoption across various age groups, with older consumers also showing a significant rise in usage compared to previous years.

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Market Size of UAE Buy Now Pay Later Services Industry

uae buy now pay later market size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 6.00 %
Market Concentration Medium

Major Players

uae buy now pay later market share

*Disclaimer: Major Players sorted in no particular order

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Buy Now Pay Later Service in UAE Market Analysis

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.

Buy Now Pay Later Service in UAE Industry Segmentation

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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UAE Buy Now Pay Later Services Market Size Summary

The Buy Now Pay Later (BNPL) service market in the UAE is experiencing significant growth, driven by the increasing adoption of online payment methods and the rise of e-commerce. BNPL solutions, which offer consumers the ability to make purchases and pay in interest-free installments, are becoming increasingly popular, particularly among younger generations. The COVID-19 pandemic has further accelerated this trend, as more consumers seek flexible payment options for both essential and luxury goods. The healthcare sector, in particular, is expected to see rapid growth in BNPL usage due to rising treatment costs and the demand for medical services. Despite challenges such as late and returned payment costs, the market is poised for expansion, supported by the convenience and affordability of BNPL services.

The BNPL market in the UAE is moderately fragmented, with key players like Tabby, Spotti, Postpay, and Tamara leading the charge. These platforms are gaining traction as they offer benefits such as fast credit card fund transfers, increased personal information security, and digital transaction monitoring. Retailers and merchants are increasingly adopting BNPL technology to enhance revenue by offering installment payment options, which appeal to both customers and businesses. Strategic partnerships, such as those between Abu Dhabi Islamic Bank and Spotii, are further propelling market growth by introducing innovative solutions like virtual BNPL prepaid cards. As the market continues to evolve, the demand for BNPL services is expected to rise, providing lucrative opportunities for providers and contributing to the overall expansion of the financial technology landscape in the UAE.

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UAE Buy Now Pay Later Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porters 5 Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights of Technology Innovations in the Market

    6. 1.6 Impact of Covid-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Application

      1. 2.1.1 Online

      2. 2.1.2 POS

    2. 2.2 By Product Category

      1. 2.2.1 Kitchen Appliances

      2. 2.2.2 Other Electronic Appliances (TVs, Mobiles, Laptops, Tablets, etc)

      3. 2.2.3 Fashion and Personal Care

      4. 2.2.4 Healthcare

      5. 2.2.5 Other Products

UAE Buy Now Pay Later Services Market Size FAQs

The UAE Buy Now Pay Later Services Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

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

Buy Now Pay Later Service Market in UAE Report Snapshots

Buy Now Pay Later Service Market in UAE Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)