Report Description

According to PayNXT360, BNPL payment market in Middle East is expected to grow by 19.4% on annual basis to reach US$5,791.7 million in 2025.

The BNPL market in the region experienced robust growth during 2021-2024, achieving a CAGR of 28.8%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 15.2% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 4,851.8 million to approximately USD 11,741.7 million.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Middle East, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the regional and 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.

PayNXT360’s 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.

This tittle is a bundled offering combining 4 reports, covering regional insights along with data centric analysis at regional and country level:

1. Middle East Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
2. Israel Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
3. Saudi Arabia Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
4. United Arab Emirates Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook

Key Insights

Expansion of BNPL Market with Accelerated Adoption
• The BNPL market in the Middle East has been expanding rapidly, driven by increased e-commerce activity and consumer preference for flexible payment options. Providers such as Tabby and Tamara have witnessed significant growth, particularly in the UAE and Saudi Arabia.
• Strong e-commerce growth, supported by platforms such as Noon and Amazon MENA, has driven demand for BNPL services. Additionally, younger consumers, accustomed to digital solutions, are seeking alternatives to traditional credit.
• BNPL adoption is likely to accelerate, with continued innovation and service offerings expanding across various consumer segments. However, increased regulatory oversight may influence market entry strategies for new providers.

Strategic Partnerships Enhancing BNPL Reach
• BNPL providers are forming strategic partnerships with retailers, e-commerce platforms, and financial institutions. For example, UAE-based BNPL provider Postpay partnered with the Commercial Bank of Dubai to expand its product offerings.
• These collaborations aim to leverage established business networks and customer trust to scale operations rapidly. Retailers are adopting BNPL to increase sales conversions and improve customer loyalty.
• More partnerships are expected as BNPL providers seek to diversify their services. This could lead to deeper integration across retail and non-retail sectors, enhancing consumer access to flexible payment options.

Growing Regulatory Focus on BNPL Operations
• Regulatory authorities in the Middle East, such as the Saudi Central Bank, have increased scrutiny of BNPL services to ensure consumer protection and financial stability. Guidelines introduced in Saudi Arabia in 2023 require transparency in lending practices and customer communication.
• Regulators are aiming to balance market growth with financial stability, ensuring that BNPL services do not lead to excessive consumer debt. Increasing adoption rates have prompted concerns about responsible lending.
• Providers will need to enhance compliance frameworks and transparency measures. Regulatory alignment will encourage long-term stability in the sector, though it may pose challenges for smaller players with limited resources.

Integration with Digital and Retail Ecosystems
• BNPL is being integrated into super apps and e-commerce platforms. Tabby, for instance, partnered with the Apparel Group to provide installment payment options across both online and in-store transactions in key markets.
• Consumers increasingly prefer platforms that offer multiple services in one ecosystem. Retailers and fintech firms are responding by embedding BNPL solutions directly into their customer experience workflows.
• Enhanced integration with digital platforms will improve user experience and broaden BNPL adoption. As super apps consolidate more services, BNPL providers will innovate to maintain competitiveness within these platforms.

Competitive Landscape and Regulatory Developments in Africa’s Buy Now, Pay Later (BNPL) Sector

Africa’s BNPL market is entering a transformative phase, driven by heightened competition, technological innovation, and evolving regulatory frameworks. Key players are strengthening their market presence through strategic partnerships, funding initiatives, and sector-specific service offerings. Over the next 2-4 years, the sector is expected to see further market expansion, increased consumer adoption, and potential consolidation as providers adapt to the changing landscape. Regulatory developments will play a crucial role in shaping the future of BNPL, fostering a more secure and transparent financial ecosystem.

Competitive Intensity and Current Market Landscape
• The BNPL market in Africa has been expanding rapidly, with both local and international players vying for market share. The competitive landscape is characterized by a mix of established companies, emerging fintech startups, and growing partnerships with retailers and e-commerce platforms. The rising demand for flexible payment options, fueled by the region’s increasing e-commerce activity, is intensifying competition across key markets such as Nigeria, South Africa, and Kenya.
• Jumia (Pan-African): One of the largest e-commerce platforms in Africa, Jumia partnered with BNPL providers like Easybuy and CredPal to offer installment payments on its marketplace, particularly in Nigeria, where demand for consumer electronics and household items is high.
• Moniepoint (Nigeria): A rapidly expanding fintech, Moniepoint is enhancing its financial service offerings by integrating BNPL solutions for small businesses and consumers. This strategy aligns with the growing need for alternative credit in underserved areas.
• Tyme Group (South Africa): Tyme Bank’s recent funding and strategic partnerships have positioned it as a key player in South Africa’s fintech ecosystem. Its focus on digital financial services includes developing BNPL offerings that cater to diverse consumer needs, particularly for everyday essentials.

Recent Developments and Strategic Moves
• The competitive landscape has been shaped by a series of strategic actions taken by major players in 2024. Companies have focused on market expansion, sector-specific BNPL offerings, and partnerships with both regional and global stakeholders.
• In South Africa, e-commerce leader Takealot expanded into township areas through a collaboration with personal shoppers to provide offline access to its services. The integration of BNPL services in these areas has increased accessibility for consumers who prefer face-to-face transactions for larger purchases.
• Moniepoint secured significant investment from international backers, including Google. The funding aims to enhance Moniepoint’s capacity to offer digital credit products and strengthen its payment infrastructure, addressing the growing demand for alternative financing solutions.
• Tyme Group has attracted attention from global investors such as Nubank, which invested heavily in its operations. This move highlights the strategic importance of Africa as a growing fintech hub, particularly in markets with limited access to traditional credit.

Regulatory Developments in 2024
• The regulatory environment surrounding BNPL services has seen significant updates across key African markets. These regulations aim to foster financial stability while promoting innovation and consumer protection.
• Kenya: Regulators announced plans to oversee BNPL providers with stricter requirements for transparency in lending terms, aiming to prevent over-indebtedness. This move follows growing concerns about consumer debt levels associated with digital credit products.
• South Africa: Authorities have advocated for the creation of regulatory sandboxes to support fintech innovation, including BNPL services. These initiatives seek to balance technological advancement with legal safeguards, ensuring that consumers are protected against unfair lending practices.
• Nigeria: The Central Bank of Nigeria has signaled its intent to introduce licensing frameworks for BNPL operators as part of broader fintech regulations. This is expected to formalize industry standards, making it easier for reputable providers to compete while discouraging predatory practices.

Future Competitive Dynamics (Next 2-4 Years)
• The competitive intensity in Africa’s BNPL market is expected to increase as providers diversify their offerings and expand across new sectors such as healthcare, education, and travel. Technological innovation will play a pivotal role in enhancing credit assessment and improving customer experience. Providers will likely invest in AI and machine learning to deliver personalized payment plans and risk management solutions.
• Existing players will target rural and underserved areas to tap into new consumer segments. Partnerships with local merchants and mobile payment platforms will be crucial in driving this growth.
• Smaller players may merge with larger fintech firms as regulatory compliance becomes more demanding. This could result in a more stable market structure with fewer, but stronger, competitors.
• Cross-border partnerships and regional integrations are expected to rise, enabling BNPL providers to leverage economies of scale and offer seamless services across multiple African markets.


Scope

This title from PayNXT360 is a bundled offering, combining 8 reports (464 tables and 600 charts).

Country reports in this bundled offering provide in-depth analysis of Buy Now Pay Later industry. Below is a summary of key market segments offered at country level:

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in through 58 tables and 75 charts. Below is a summary of key market segments:

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

Buy Now Pay Later Revenue Analysis
• 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


Buy Now Pay Later Operational KPIs & Statistics
• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

BNPL by Purpose
• Convenience – Short Term Loans
• Credit – Long Term Loans

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

BNPL by Merchant Ecosystem
• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis
• Standalone
• Banks & Payment Service Providers
• Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel
• Online Channel
• POS Channel

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

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

Buy Now Pay Later in Travel: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

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

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

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

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
• Monthly Expense Segments


Reasons To Buy
• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in the Middle East: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in the Middle East. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.