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UAE Buy Now Pay Later Business and Investment Opportunities

UAE Buy Now Pay Later Business and Investment Opportunities

According to PayNXT360, BNPL payments in the country are expected to grow by 67.9% on an annual basis to reach US$3,183.4 million in 2022. Medium to long term growth story of BNPL industry in United...

UAE Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update
Summary
According to PayNXT360, BNPL payments in the country are expected to grow by 67.9% on an annual basis to reach US$3,183.4 million in 2022.

Medium to long term growth story of BNPL industry in United Arab Emirates remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 33.9% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$1,895.6 million in 2021 to reach US$18,341.5 million by 2028.

The United Arab Emirates (UAE) has experienced a steady demand for buy now pay later (BNPL) services. Easy accessibility to credit, consumer appeal, and the assurance of zero interest have been the major growth drivers for the BNPL industry across the United Arab Emirates and the Middle East region. 

Over the next three to four years, the BNPL market is expected to grow across different industries, including banking, travel, luxury retail, trading, insurance, healthcare, and hospitality. This is because the BNPL market in the United Arab Emirates (UAE) is becoming more and more saturated as big banks, new entrants, and payment schemes continue to seek market share. 

PayNXT360 also believes banks are well-positioned to enter the BNPL market in the UAE. With their experience in regulatory compliance, credit underwriting, and access to a large customer base, the entry of banks into the BNPL sector can further disrupt the fast-growing industry in the Middle East. Moreover, as pure-play BNPL players enhance user engagement and scale their services, PayNXT360 expects firms to move towards a super app strategy that might combine financing, payments, retail, and other banking services. 

Regional BNPL players are expanding operations in the UAE amid the growing demand among consumers 

According to a survey report from Checkout.com, 31% of UAE consumers are planning to use the BNPL payment in 2022, which is the highest across the Middle East region. Consequently, to tap into the growing demand among UAE consumers, regional players are expected to expand operations in the country. For instance, 

• In June 2022, Tamara, the Saudi Arabia-based BNPL firm, announced that the firm is expanding operations in the UAE. To provide UAE consumers with the ability to shop at more merchants using the BNPL payment method, the firm is partnering with retailers across sectors. Some of its merchant partners include SHEIN, Fitness Time, Namshi, and many more. This expansion strategy in the UAE comes after the survey report from Checkout.com, which is also the lead investor in the Saudi-based firm. 

As the UAE BNPL market continues to grow and expand in size, PayNXT360 expects more regional and global BNPL firms to expand their operations in the country over the next three to four years. 

UAE-based BNPL startups are raising funding rounds to support the expansion of their firm across the region 

In the Middle East and North Africa region, the BNPL market is expected to record accelerated growth amid growing consumer demand. Consequently, firms are raising funding rounds to capitalize on the trend and expand their market share by extending their presence in more Middle Eastern countries. For instance, 

• In March 2022, tabby, one of the leading BNPL players in the UAE, announced that the firm had raised US$54 million in an extended Series B round, which was led by Sequoia Capital India and STV. While the sector is still in its nascent stages in the GCC region, adoption has surged significantly over the last 12 months, a trend that is expected to continue further. Consequently, tabby is planning to use the funding round to expand its presence in more Middle Eastern countries. 

• In May 2022, Cashew announced that the firm had raised US$10 million from Mashreq Bank. As part of the investment, the BNPL payment platform of Cashew will be integrated with Neopay, the payments subsidiary of Mashreq. Notably, like tabby, the firm is also expected to strengthen its presence in the MENA region from the short to medium-term perspective. Mashreq is expected to support Cashew to launch services in Egypt in Q4 2022. 

As competition continues to intensify and the market grows in the MENA region, more firms are expected to raise investment and boost their presence across the region over the next three to four years. 

Firms are innovating with the checkout experience to drive more adoption among consumers 

To make the shopping experience more seamless and convenient, BNPL providers are innovating the consumer checkout experience to make their products more attractive for users in the UAE. For instance, 

• In July 2022, Postpay, a Dubai-based BNPL provider, announced the launch of One by Postpay, the service allowing consumers to bypass the usual checkout steps, thereby letting them buy products directly from the product page across major e-commerce brands. Notably, the unified checkout experience launched by the firm is expected to be five times faster than any other regional checkout experience. 

With shoppers’ expectations around online shopping changing, these innovations in the payments space are expected to become a critical factor for customer acquisition among players in the country over the next three to four years. 
Scope
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in UAE. Below is a summary of key market segments:

UAE BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis 

UAE Buy Now Pay Later Operational KPIs
• Buy Now Pay Later Revenues, 2019 – 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 – 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
• Buy Now Pay Later Accounts, 2019 – 2028
• Buy Now Pay Later Bad Debt, 2019 – 2028

UAE Buy Now Pay Later Market Share Analysis by Key Players (Tabby, Postpay, Zip, Tamara, Spotii)

UAE Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
• Online Channel
• POS Channel

UAE Buy Now Pay Later in Retail Shopping: Market Size and Forecast
• 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
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
• 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
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Other: 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
• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income 
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
Reason to buy
• In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.

• Market Share by Key Players
Table of Contents
 1. About this Report
1.1 Summary
1.2 Methodology
1.3 Disclaimer

2. United Arab Emirates BNPL Market Size and Future Growth Dynamics
2.1 Consumer Behavior
2.2 Competitive Landscape and Growth Strategies
2.3 Market Share
2.4 Regulatory Trends

3. United Arab Emirates Buy Now Pay Later Industry Attractiveness
3.1 United Arab Emirates Buy Now Pay Later – Gross Merchandise Value Trend Analysis, 2019-2028
3.2 United Arab Emirates Buy Now Pay Later – Average Value Per Transaction Trend Analysis, 2019-2028
3.3 United Arab Emirates Buy Now Pay Later – Transaction Volume Trend Analysis, 2019-2028

4. United Arab Emirates Buy Now Pay Later Operational KPIs
4.1 Buy Now Pay Later Revenues, 2019 – 2028
4.2 Buy Now Pay Later Share by Revenue Segments
4.3 Buy Now Pay Later Merchant Commission, 2019 – 2028
4.4 Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
4.5 Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
4.6 Buy Now Pay Later Accounts, 2019 – 2028
4.7 Buy Now Pay Later Bad Debt, 2019 – 2028

5. United Arab Emirates Buy Now Pay Later Spend Analysis by Channel
5.1 Buy Now Pay Later Market Share by Channel, 2019 – 2028
5.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2019 – 2028
5.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2019 – 2028

6. United Arab Emirates Buy Now Pay Later Snapshot by End-Use Sector
6.1 Buy Now Pay Later Market Share by End-Use Sector – Emerging Avenues and Future Growth Prospects
6.2 Buy Now Pay Later Sales Uplift by End-Use Sector
6.3 Buy Now Pay Later Share by Retail Product Category

7. United Arab Emirates Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019 – 2028
7.1 United Arab Emirates Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis, 2019-2028
7.2 United Arab Emirates Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis, 2019-2028
7.3 United Arab Emirates Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis, 2019-2028

8. United Arab Emirates Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019 – 2028
8.1 United Arab Emirates Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis, 2019-2028
8.2 United Arab Emirates Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis, 2019-2028
8.3 United Arab Emirates Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis, 2019-2028

9. United Arab Emirates Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast, 2019 – 2028
9.1 United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis, 2019-2028
9.2 United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis, 2019-2028
9.3 United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis, 2019-2028

10. United Arab Emirates Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019 – 2028
10.1 United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis, 2019-2028
10.2 United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis, 2019-2028
10.3 United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis, 2019-2028

11. United Arab Emirates Buy Now Pay Later in Other Segment: Market Size and Forecast, 2019 – 2028
11.1 United Arab Emirates Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis, 2019-2028
11.2 United Arab Emirates Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis, 2019-2028
11.3 United Arab Emirates Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis, 2019-2028

12. United Arab Emirates Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
12.1 Buy Now Pay Later Spend Share by Age Group
12.2 Buy Now Pay Later Gross Merchandise Share by Income
12.3 Buy Now Pay Later Gross Merchandise Value Share by Gender
12.4 Buy Now Pay Later Adoption Rationale

13. Further Reading
13.1 About PayNXT360
13.2 Related Research
List Of Table
Table 1: United Arab Emirates Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 2: United Arab Emirates Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 3: United Arab Emirates Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 4: United Arab Emirates Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Table 5: United Arab Emirates Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Table 6: United Arab Emirates Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Table 7: United Arab Emirates Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Table 8: United Arab Emirates Buy Now Pay Later – Accounts (Thousand), 2019-2028
Table 9: United Arab Emirates Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Table 10: United Arab Emirates Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Table 11: United Arab Emirates Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Table 12: United Arab Emirates Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 13: United Arab Emirates Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 14: United Arab Emirates Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 15: United Arab Emirates Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 16: United Arab Emirates Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 17: United Arab Emirates Buy Now Pay Later Retail Shopping Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 18: United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 19: United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 20: United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 21: United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 22: United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 23: United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 24: United Arab Emirates Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 25: United Arab Emirates Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 26: United Arab Emirates Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
List of figures
Figure 1: PayNXT360’s Methodology Framework
Figure 2: United Arab Emirates Buy Now Pay Later – GMV and Adoption Rationale
Figure 3: United Arab Emirates Buy Now Pay Later – Share by Gender and Age Group
Figure 4: United Arab Emirates Buy Now Pay Later – Market Share Analysis by Key Players (%)
Figure 5: United Arab Emirates Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 6: United Arab Emirates Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 7: United Arab Emirates Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 8: United Arab Emirates Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Figure 9: Buy Now Pay Later Share by Revenue Segments
Figure 10: United Arab Emirates Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Figure 11: United Arab Emirates Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Figure 12: United Arab Emirates Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Figure 13: United Arab Emirates Buy Now Pay Later – Accounts (Thousand), 2019-2028
Figure 14: United Arab Emirates Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Figure 15: United Arab Emirates Buy Now Pay Later – Gross Merchandise Value Market Share by Channel (%), 2019-2028
Figure 16: United Arab Emirates Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Figure 17: United Arab Emirates Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Figure 18: United Arab Emirates Buy Now Pay Later – Market Share by End-Use Sector, 2021 Vs. 2028
Figure 19: United Arab Emirates Buy Now Pay Later – Market Share by End-Use Segment, 2021
Figure 20: United Arab Emirates Buy Now Pay Later – Market Share by Retail Product Category, 2021
Figure 21: United Arab Emirates Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 22: United Arab Emirates Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 23: United Arab Emirates Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 24: United Arab Emirates Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 25: United Arab Emirates Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 26: United Arab Emirates Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 27: United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 28: United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 29: United Arab Emirates Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 30: United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 31: United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 32: United Arab Emirates Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 33: United Arab Emirates Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 34: United Arab Emirates Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 35: United Arab Emirates Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 36: United Arab Emirates Buy Now Pay Later – Share by Age Group in Gross Merchandise Value Terms
Figure 37: United Arab Emirates Buy Now Pay Later – Share by Income Group in Value Terms
Figure 38: United Arab Emirates Buy Now Pay Later – Share by Gender in Value Terms
Figure 39: Buy Now Pay Later – Adoption Rationale Gross Merchandise Value Analysis
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