Buy Now Pay Later (BNPL) platforms allow consumers to purchase goods and services and pay for them in installments over time without any interest charges. These platforms have grown significantly in popularity in recent years as they provide consumers with greater convenience and flexibility in making their purchases. The BNPL model addresses the needs of the digital native population and affluent middle class in the MENA and CIS regions who prefer deferred payment options over traditional credit cards or loans. Key industries benefiting from BNPL include online retail, travel, experiences and healthcare. Key digital payment platforms such as Tabby offer seamless BNPL payment options integrated within applications, marketplaces, and online checkouts, driving higher customer acquisition and retention rates for merchants.
The Global MENA and CIS Buy Now Pay Later Platform Market is estimated to be valued at US$ 1554.49 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the MENA and CIS Buy Now Pay Later Platform are Tabby, Spotii, Tamara and Cashtra. Tabby is the leading player in the region and operates in over 10 countries including UAE, Saudi Arabia, Egypt and Pakistan.
The MENA and CIS Buy Now Pay Later Platform Market Size in the region is driven by growing demand from millennial and Gen Z consumers who prefer flexible payment options and want to manage their finances better. eCommerce retailers are partnering with BNPL providers to offer deferred payment at checkout and drive higher conversion rates.
Technological advancements such as embeddable payment links, one-click checkout and instant pre-qualification are enhancing the user experience on BNPL platforms. Data analytics capabilities are helping players provide more personalized offers, predict spending behavior and reduce risks.
Market Trends
Rise of SME Financing – BNPL providers are launching new programs focussed on small and medium enterprises to help them access affordable working capital and boost sales. Integrated BNPL boosts cashflows for SMEs.
Embedded BNPL – More BNPL providers are embedding their payment options directly within merchant websites and apps through APIs to provide seamless checkout experiences for consumers.
Market Opportunities
Unbanked Population – A large share of populations in developing nations within scope remain financially underserved or unbanked. BNPL can help boost financial inclusion by providing access to virtual credit lines digitally.
Globalization of Players – Leading BNPL players based outside the region are evaluating expansion opportunities via partnerships to tap the high-growth payments market andSavetConsumer spending in MENA and CIS nations.
Impact of COVID-19 on MENA and CIS Buy Now Pay Later Platform Market
The COVID-19 pandemic has accelerated the adoption of digital payments and buy now pay later services across the MENA and CIS region. With lockdowns imposed and social distancing measures in place, consumer preference shifted towards contactless and online payments. This created strong demand for deferred payment platforms as they enabled people to purchase goods online and pay for them later in installments without needing to use credit cards. The buy now pay later business model gained immense popularity as it provided customers flexibility and payment relief during financial uncertainties caused by the pandemic.
Several leading BNPL providers expanded their operations across new markets in the region and deepened existing partnerships with online retailers to facilitate e-commerce adoption amid restrictions. Digital lending also grew rapidly as many consumers avoided using credit cards and preferred deferred payment options with no interest charges. The pandemic highlighted the need for access to short-term credit and buy now pay later solutions emerged as a financially inclusive alternative. Going forward, continued digital transformation of payments is expected to further drive the MENA and CIS BNPL market in a post-COVID world.
The Gulf countries and Turkey witnessed the highest BNPL platform usage during the pandemic as spending shifted online. Their developed digital payments infrastructure helped consumers easily adopt contactless deferred payment options. Meanwhile, adoption increased in Egypt, Pakistan and Central Asia due to rising financial inclusion and growing young population preferring buy now pay later services over traditional credit products. Overall, the COVID-19 crisis accelerated the region’s progress towards becoming a leading BNPL market globally over the coming years.
Geographical Regions with Highest BNPL Platform Value
In terms of value, BNPL platforms registered the highest transactions as well as value generated from the Gulf region during the forecast period from 2024 to 2031. Countries including the UAE, Saudi Arabia and Qatar witnessed massive investments by BNPL giants towards deeper market penetration. Their affluent population inclined towards luxury purchases through BNPL contributed significantly to regional value.
Meanwhile, Turkey emerged as the fastest growing market led by a booming e-commerce sector and increased spending by millennials and Gen Z preferring installment-based payments. Central Asian nations along with Pakistan and Egypt also exhibited strong growth as digital finance penetration expanded in these developing countries through BNPL models. Overall, Gulf digital economies and aspiring emerging markets across MENA and CIS are projected to drive the value of BNPL platforms going forward.
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