Middle East and Africa Buy Now Pay Later(BNPL) Market Outlook, 2030

The BNPL market in the Middle East and Africa has progressed from fragmented merchant-led installment practices into a formal, regulated digital finance ecosystem that is now central to both online and offline commerce. In Saudi Arabia, the Saudi Central Bank (SAMA) has taken a leading role by introducing a licensing framework for BNPL providers, prompting companies like Tabby and Tamara to obtain permits and operate under clear compliance rules, while also embedding Sharia-compliant structures certified by independent boards to match cultural and religious expectations.

In the United Arab Emirates, the Central Bank updated finance company regulations to explicitly cover short-term consumer lending, pushing providers to strengthen their disclosure, KYC and settlement practices, often through partnerships with licensed banks. In Africa, BNPL has evolved differently, with companies such as JumiaPay embedding pay-later features in its e-commerce platform and M-KOPA expanding its pay-as-you-go solar and smartphone financing model across Kenya, Uganda and Nigeria, relying heavily on mobile money and alternative credit scoring in markets with limited bureau coverage.

Across MEA, APIs and QR code-based integrations have become critical, connecting wallets and POS systems to instant approval engines that assess consumers using data such as mobile top-up histories, telco records and e-commerce activity. Fraud prevention and risk management are also advancing, with providers using AI-powered decisioning and real-time behavioral analytics to flag risky transactions in markets where identity fraud remains a challenge. Regulators have begun to emphasize transparency and affordability checks to reduce the risk of over-indebtedness, while new data privacy regimes such as South Africa’s POPIA and the UAE’s updated data protection laws require BNPL firms to maintain local compliance teams and safeguard consumer data.

According to the research report "Middle East and Africa Buy Now Pay Later (BNPL) Market Outlook, 2030,", the Middle East and Africa Buy Now Pay Later (BNPL) market is anticipated to grow at more than 17.26% CAGR from 2025 to 2030. In the Gulf, Tabby and Tamara are dominant, working with retailers such as IKEA, Namshi, and Noon to offer installments both online and in-store, while simultaneously partnering with local banks to secure liquidity and ensure regulatory compliance.

In Africa, JumiaPay has integrated BNPL into its e-commerce checkout, and M-KOPA continues to scale its asset-financing model that allows customers to pay for smartphones, solar systems and household goods in daily or weekly installments using mobile money services such as M-Pesa. Generationally, younger mobile-first consumers drive much of the adoption in urban areas like Riyadh, Dubai, Lagos and Nairobi, but older cohorts are increasingly engaging through in-store BNPL options embedded into mall retailers and supermarket chains. In the Gulf, electronics, fashion and travel bookings are leading segments, while in Africa, BNPL is gaining traction in device financing, household goods, and essential services.

Large enterprises, particularly in retail and telecom, are central to scaling BNPL, with partnerships enabling SMEs and independent merchants to offer installment options through payment gateways and acquirer integrations without bearing credit risk themselves. Banks and card networks have also entered, with Visa and Mastercard launching installment features to defend their relevance and Gulf banks collaborating directly with fintechs to co-create BNPL products.

Regulatory tightening in Saudi Arabia and the UAE has already brought affordability checks and mandatory transparency requirements, while African regulators are watching debt accumulation risks as adoption expands. At the same time, BNPL providers are experimenting with loyalty programs, cashback offers and zero-interest promotions funded by merchants to encourage repeat usage.

Market Drivers

• Young and digitally savvy population: MEA has one of the youngest populations globally, with a large share under the age of 30. This group is highly mobile-first, relying on smartphones for daily shopping, social media, and financial transactions. BNPL appeals to their demand for flexible, low-friction payment solutions, especially as many prefer installment options over credit cards. The region’s youth-driven digital adoption fuels BNPL growth, as providers integrate with mobile wallets, e-commerce apps, and online marketplaces widely used by this demographic.
• Government support for fintech and digital payments: Countries like Saudi Arabia and the UAE have prioritized digital transformation as part of national strategies such as Vision 2030. Regulators encourage innovation by creating fintech sandboxes and promoting financial inclusion. This government backing provides BNPL providers with favorable conditions to test, scale, and integrate services across retail, travel, and even education sectors. Such supportive frameworks give both consumers and merchants confidence, turning BNPL into a rapidly expanding payment option in MEA.

Market Challenges

• Uneven financial infrastructure across the region: While countries like the UAE and Saudi Arabia have advanced banking and digital systems, many African and smaller Middle Eastern markets lack widespread payment infrastructure and robust credit reporting. This inconsistency makes it difficult for BNPL providers to scale across borders, as risk models and integration requirements vary widely. The fragmented financial landscape creates hurdles for standardized adoption and increases operational costs.
• High risk of defaults due to income instability: In several MEA markets, informal employment is common and incomes can be irregular, which increases repayment risks for BNPL providers. Unlike salaried markets with predictable income flows, many consumers in Africa and parts of the Middle East rely on seasonal or gig-based work. This volatility makes underwriting more complex and raises default risks, especially in economies without comprehensive consumer credit histories.

Market Trends

• Growth of Sharia-compliant BNPL products: In markets such as Saudi Arabia, the UAE, and other Gulf states, providers are introducing Sharia-compliant BNPL solutions that align with Islamic finance principles. These offerings avoid interest charges and instead use fee-based or merchant-funded models, which resonate strongly with local cultural and religious preferences. This innovation is helping BNPL gain traction with a wider segment of consumers across MEA.
• Expansion into offline retail and essential services: BNPL in MEA is moving beyond online shopping into offline retail and essential services such as healthcare, education, and bill payments. Clinics, schools, and utilities are beginning to adopt installment models to help households manage costs. This diversification extends BNPL beyond discretionary spending and positions it as a practical tool for daily life, further accelerating adoption in the region.POS is the fastest growing in Middle East and Africa BNPL because consumers in the region value in-store shopping while seeking instant financing options, and merchants leverage BNPL at checkout to boost sales without requiring traditional credit.

The growth of point-of-sale BNPL in the Middle East and Africa is closely linked to the enduring importance of physical retail and the limited reach of traditional consumer credit products. Shoppers in countries like Saudi Arabia, the UAE, South Africa, and Nigeria often prefer visiting malls, hypermarkets, and local stores to assess products before making purchases, but many do not have credit cards or prefer to avoid interest-based financing. BNPL providers solve this gap by offering installment plans directly at the checkout counter, allowing consumers to split payments instantly with just a mobile app confirmation, QR code scan, or simple card-tap approval.

Retailers across sectors such as electronics, fashion, and household goods are adopting BNPL because it increases sales conversion and average order values while they still receive full payment upfront from the provider. This setup is particularly appealing in a region where merchants rely heavily on predictable cash flows and cannot afford the risks of lending themselves. The adoption of mobile wallets and digital identity systems, such as UAE Pass or Saudi Arabia’s government-backed digital IDs, makes it easy to verify customers and complete transactions seamlessly in-store.

In addition, cultural and religious preferences also influence BNPL growth at POS, as many providers offer Sharia-compliant models that avoid charging interest, making the service acceptable to a wider audience. For consumers, POS BNPL provides a sense of control, as they see the product in-store and confirm financing in real time without dealing with banks. For merchants, offering BNPL at the point of sale differentiates them from competitors and builds loyalty among customers seeking modern yet accessible payment options.

Gen X and Boomers are the fastest growing BNPL adopters in the Middle East and Africa because their increasing digital adoption combines with a preference for predictable installment structures that align with their financial habits.

The rising BNPL usage among Gen X and Boomers in the Middle East and Africa reflects both cultural norms around installment payments and the changing behavior of older consumers who are becoming more digitally active. These groups, often responsible for household expenses, education, and healthcare, have long relied on cash or informal installment arrangements to manage budgets, so BNPL appears to them as a modern extension of a familiar practice. The pandemic accelerated their adoption of e-commerce and digital wallets in markets like the UAE, Saudi Arabia, South Africa, and Kenya, exposing them to BNPL services embedded at checkout.

Gen X, in their peak earning years, often face multiple financial commitments and view BNPL as a practical tool for smoothing cash flow, particularly when purchasing higher-value goods such as electronics, appliances, or travel. Boomers, some living on fixed incomes, find BNPL attractive for spreading healthcare, insurance, or utility payments without tapping into savings. Providers in the region design clear repayment schedules and Sharia-compliant models that emphasize transparency and fairness, which resonate strongly with older consumers who prioritize predictability and avoid debt traps.

Marketing strategies also play a role, with BNPL providers targeting family-oriented spending categories and building trust through collaborations with established retailers. The increasing comfort of these groups with mobile apps and digital identification systems has lowered barriers, making it easier for them to embrace new financial products. Their adoption is further driven by the fact that BNPL is often available at the point of sale in large malls and hypermarkets, environments where older generations still prefer to shop.

Large enterprises and global retailers lead the BNPL market in the Middle East and Africa because their scale, trust, and partnerships with BNPL providers ensure widespread adoption both online and in-store.

In the Middle East and Africa, large enterprises and global retailers dominate BNPL adoption because they have the infrastructure and brand recognition to introduce installment financing at scale across diverse markets. International names like Carrefour, IKEA, and Amazon, as well as regional giants like Majid Al Futtaim Group and Jumia, are early adopters of BNPL, embedding these options at both online checkouts and physical stores. Consumers in the region are more willing to try BNPL when it is offered by trusted retailers, which reduces hesitation and builds confidence in using new financial products.

These enterprises are able to integrate BNPL seamlessly into loyalty programs, mobile apps, and omnichannel strategies, giving shoppers consistent access whether they are buying online or in-store. Retailers also use BNPL as a promotional tool during peak shopping events like Ramadan sales in the Middle East or Black Friday in Africa, encouraging higher spending and repeat visits.

Their scale allows them to negotiate favorable arrangements with BNPL providers, including zero-interest plans subsidized by merchants, making BNPL even more attractive to consumers. For providers, partnerships with global retailers accelerate adoption by instantly connecting them with millions of shoppers and increasing their visibility in competitive markets.

Additionally, the presence of these enterprises across multiple countries helps BNPL providers overcome the challenges of fragmented financial infrastructure by leveraging existing retail networks. The result is a reinforcing cycle where consumer trust in big brands translates into greater BNPL adoption, and BNPL in turn becomes a selling point that strengthens customer loyalty to those retailers.Saudi Arabia leads in MEA because a youthful, mobile-first population, proactive government digitization policies and strong bank-fintech alliances created fertile ground for BNPL to take off.

Saudi Arabia’s prominence in MEA BNPL stems from rapid digital adoption among a young population, government support for fintech ecosystems and the strategic involvement of large regional banks and retailers. The country’s demographic profile includes a high share of tech-native young adults who favor mobile apps and seamless digital payments, creating a ready audience for installment options. E-commerce growth, improvements in logistics and a surge in smartphone penetration shifted more retail activity online where BNPL could be offered at checkout.

Government initiatives and national visions promoting digital transformation, financial inclusion and fintech sandboxing encouraged startups and incumbents to pilot and scale innovative payment products. Regulators have been working to formalize frameworks for consumer protection and open banking, which reduces uncertainty for providers while enabling safer product designs. Local and regional banks collaborated with fintechs to combine distribution scale and capital with agile product development, smoothing the path for BNPL offerings. Retailers and marketplaces in the kingdom embraced installment mechanics, sometimes offering Sharia-compliant structures and Arabic interfaces to reach broader audiences.

Digital identity systems, ubiquitous mobile numbers and KYC processes shortened onboarding times and lowered abandonment during sign-up for BNPL services. Payment methods such as local wallets, card networks and bank transfers provided multiple rails for collections and settlement, which providers used to optimize repayment flows. Marketing channels including social media, influencer commerce and in-app promotions accelerated consumer awareness and trial among younger cohorts.

Fintech investment, both domestic and from regional sovereign funds, supplied the capital necessary for merchant partnerships, marketing and underwriting technology. Providers adapted products to cultural expectations around transparency and privacy, building consumer confidence through clear terms and local customer support. Partnerships with telecoms, banks and major retailers created an ecosystem where BNPL could be bundled with other digital services, increasing value for consumers.

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