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 2024 Update

According to the publisher, BNPL payments are expected to grow by 18.5% on an annual basis to reach US$ 2.45 billion 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$ 2.07 billion in 2023 to reach US$ 4.41 billion 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.
With the market poised for growth over the next three to four years, authorities have been looking to regulate the unregulated sector. In the Emirates, the central bank has issued new guidelines for BNPL firms, requiring them to get licensed to operate in the market. The guidelines, coupled with the rising adoption, are projected to support sustainable industry growth over the next three to four years.

Firms are raising debt and equity rounds to further scale their product offering in the region

The demand for payment solutions like BNPL is poised to grow further in 2024. Consequently, to better serve consumer demand, firms are raising capital through debt and equity rounds in the Emirates.

• Tabby, one of the leading UAE-based BNPL firms, announced that the firm had secured US$700 million in debt financing from JPMorgan, while also extending its Series D round to US$250 million in November 2023. The capital round further strengthens the position of Tabby in the domestic and regional markets, where it manages more than US$6 billion in annualized transaction volume. Tabby, notably, serves more than 10 million users and has partnered with over 30,000 brands.
• The firm has been innovating with its product lineup, as it seeks to better meet the evolving needs of its users. Tabby, in 2023, launched Tabby Shop offering more than 500,000 products from thousands of brands. Tabby Card is also picking up pace, with transactions reaching more than 20% of the total volumes. To widen the distribution of its BNPL product, the firm is also forging strategic alliances in the Emirates. Tabby, in September 2023, entered into a partnership with Arabian Automobiles to offer enhanced convenience and flexibility for vehicle maintenance and repairs.

Going forward, the publisher expects more such strategic collaborations in the sector. Furthermore, firms are also expected to raise venture capital and private equity funding, thereby driving innovation and a competitive landscape in the sector.

Global firms are entering the fast-growing buy now pay later industry in the United Arab Emirates

The BNPL industry is projected to grow steadily over the next three to four years, amid rising adoption of the payment method. To tap into the growing market, global firms are entering into the industry with their solutions.

• Alif, one of the leading global fintech firms, launched its financial services suite in the United Arab Emirates market in September 2023. The financial services suite includes products like send now pay later, buy now pay later, and fly now pay later, among others. The firm also launched global remittance services for residents in the United Arab Emirates.

As the market continues to grow and more global players launch their products in the Emirati nation, the competitive landscape is poised to grow even further from the short to medium-term perspective.

The Central Bank issued new guidelines for buy now pay later firms in the United Arab Emirates

The Central Bank, in December 2023, announced new regulations to oversee BNPL services. According to the UAE Central Bank, businesses providing BNPL services must operate as agents of licensed banks or financial institutions, with approval from the central bank.

• Fintech companies in the BNPL sector can also offer short-term credit services after obtaining a license as restricted license finance companies. Unlicensed entities providing short-term credit must either apply for a license or collaborate with licensed banks to continue their services.

The central bank has defined short-term credit as credit granted for up to 12 months for purchasing goods or services without interest, collateral, or a security deposit. This regulation aligns with the growing global trend of BNPL services, driven by increased consumer demand for flexible payment options and the expansion of e-commerce. These guidelines will serve as the foundation for further regulatory activities for the BNPL sector in the Emirates.

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.

The 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.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in UAE through 55 tables and 71 charts. Below is a summary of key market segments:

UAE BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later Revenue Analysis, 2020-2029

• 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, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

UAE BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

UAE BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

UAE BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

UAE BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

UAE Buy Now Pay Later Market Share Analysis by Key Players

UAE BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

UAE Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Others: 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
• Average Monthly Expense segments

Reasons to buy

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). 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.