BNPL payments in the UAE are expected to grow by 89.4% on annual basis to reach US$ 1822.7 million in 2022.
Medium to long term growth story of BNPL industry in the UAE remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 45.9% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 962.2 million in 2021 to reach US$ 17551.7 million by 2028.
In the UAE, the global pandemic has resulted in a shift in consumer spending habits and accelerated adoption of online shopping platforms. This shift in the overall consumer behavior, along with the rise of digital payment solutions, is resulting in buy now, pay later (BNPL) becoming one of the fastest-growing payments methods in the country.
The adoption of the BNPL products and services has been on a constant rise in the region over the last four to eight quarters. Several startups and global BNPL players are offering their innovative products and deferred payment services for consumers in the UAE. Moreover, the adoption from merchants is also on the rise as more and more consumers are demanding the BNPL payment method for both in-store as well as online purchases.
Strategic partnership to launch innovative BNPL solution in the UAE
As the digital payments landscape continues to evolve in the UAE, BNPL firms along with global payment giants are launching innovative, first-of-its-kind shop anywhere BNPL schemes.
- In November 2021, Postpay, one of the leading BNPL platforms in UAE, entered into a strategic collaboration with the Commercial Bank of Dubai and Mastercard. The firm has partnered strategically to launch the region’s first-of-its-kind shop anywhere BNPL scheme, with the aim to drive digital payments growth in the UAE.
- The shop anywhere BNPL scheme allows consumers to purchase online or in-store at thousands of physical stores, such as Decathlon, GAP, Level Shoes, Ace, Apple, Azadea, H&M, Home Center, Mumzworld, Sephora, Sharaf DG, Shein, and Zara.