Turkey, Aug. 02, 2022 (GLOBE NEWSWIRE) -- The middle east buy now pay later market was valued at USD 9.5 billion in 2022. The buy now pay later market has seen a good growth in the Middle East region in the previous years and it's expected to grow due to an increased use of ecommerce platforms. COVID-19 pandemic has also affected the growth of this market in a positive way. The buy now pay later market has grown by about 99% in the year 2022.
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Due to an increasing number of startups entering the market and a variety of products offered by the already existing companies is expected to drive the market in the coming years. There is an increasing demand for the buy now pay later platform from many consumers. There has been a major shift in the purchasing habits of the consumer people in the United Arab Emirates have adopted the online platforms for various purchases and it has also accelerated the growth of the buy now pay later market in this region.
The buy now pay later method is growing faster than expected. The already existing companies are launching better products that will make it possible for the consumers that seek using buy now pay later schemes across all different types of shops. The company's existing in the Middle East region are planning to provide or expand their business for the B2B segment.
The buy now pay later market is providing many opportunities for growth in the Middle East region and also across the globe. The central Bank of Saudi Arabia has made it compulsory to obtain a permit in order to offer the buy now pay later services and this has been helpful in creating more demand for this platform as it now comes under the authorities.
Report highlights
- By enterprise size, the large enterprises are expected to have a dominant position in the coming years. In order to provide affordable and flexible payment options for the purchasers the large-scale enterprises have adopted the buy now pay later solution.
- By end user, the fashion and the government segment is expected to dominate the market. There's an increased purchase of sportswear as well as the accessories as the payment options are almost always interest free.
- Online segment will have the largest market share in the coming years as there is a growth in the adoption of this payment method across all the e-commerce websites.
Recent Developments
- A UAE based organization postpay Collaborated with the Dubai based commercial bank. This collaboration aims at increasing the product portfolio of the financial products offered in this region.
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Scope of the Report
| Report Attributes | Details |
| Market Size in 2021 | USD 7.18 Billion |
| Revenue Forecast by 2030 | USD 89.27 Billion |
| CAGR | 32.31% from 2022 to 2030 |
| Base Year | 2021 |
| Forecast Year | 2022 to 2030 |
| Key Players | Pay flex, Tabby, Tamara, Post Pay, Spotty, Others |
Market Dynamics
Drivers
Regulatory authorities are taking necessary steps in order to legalize this platform. It happens to be the fastest growing market as many major market players are innovating the products that they offer. The buy now pay later companies need to obtain a permit in order to survive in the market. This mandatory tome has created more trust in these platforms. This announcement which was made by the central Bank of Saudi Arabia will help in the growth of the market in the coming years. The fear of stealing the credit card information and the fear of entering the credit card related information on a third-party website is also leading to the growth of the market.
Younger generation with less affordability for various luxury products are also increasing the use of buy now pay later platforms as they be able to purchase various products. As the amount to be paid is spread out in the future in the form of EMS which can be paid weekly or monthly depending upon the amount of transactionbeard there's an increasing demand for this market in the elderly population as the source of income of this generation it's not structured and this platform offers a flexible paying option.
Restraints
The amount of money of which the purchases have been made is spread out in the future in the terms off EMI spread out for multiple weeks or months but in case the person defaults from paying there is a late fee charged and this happens to be a drawback in the market. The buy now pay later platform can be used for purchasing only a few items. The buy now pay later market does not offer purchases of all the commodities and hence this is also a restraint in the growth of the market.
Opportunities
Major market players are investing in the research and development activities in order to provide better platforms that will be technologically advanced for usage across all the stores. Companies are investing money in order to make this platform accessible even at the smallest of the stores to increase its market. The central Bank of Saudi Arabia has announced a legal action against the platforms that do not apply for a permit. This step is also expected to provide a good opportunity for the growth of the market in the coming years period. Many traditional financial institutes are entering into partnership with the why now pay later platforms in order to expand the market for the same.
Challenges
The availability of other payment methods happens to be a major challenge for the growth of this market. With every purchase the provider of the buy now pay later market needs to sign an agreement which makes this process is extremely time consuming. There are many platforms that offer the buy now pay later service and the availability of various platforms can create an extremely confusing situation at the point of sales or at the time of purchase as there is a need to add the different buy now pay later providers. It also happens to be expensive as there is a processing fee charged for these transactions which happens to be about 3 to 7%. Increase the margin of the products that are sold is not that great the cost incurred by the merchant happens to be a challenge for the growth of the market.
Market Segmentation
By Component
- Platform/Solutions
- Services
By Purchase Ticket Size
- Small Ticket Item (Up to US$ 300)
- Mid Ticket Items (US$ 300 - US$ 1000)
- Higher Prime Segments (Above US$ 1000)
By Business Model
- Customer Driven
- Business Driven
By Mode
- Online
- Offline
By Vertical
- Home & Furniture
- Electronics
- Fashion
- Others
By Countries
- Egypt
- Israel
- Jordan
- Turkey
- Rest OF ME
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