Market Size of Middle East and Africa Buy Now Pay Later Services Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 25.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Middle East & Africa Buy Now Pay Later Market Analysis
The Buy Now Pay Later (BNPL) payment sector in Africa and the Middle East has grown rapidly over the previous four quarters, aided by rising e-commerce penetration and the impact of the economic slowdown induced by the Covid-19 epidemic. Buy now, pay later (BNPL) services have grown in popularity among e-Commerce companies and their clients over the last several years. The Covid-19 repercussions started these phenomena, and it appears that the buy now pays later (BNPL) platforms sector will continue to flourish even after the epidemic. The reasons for this are straightforward: BNPL is a handy and less expensive option to obtain fast loans for online purchases.
The breakout of COVID-19 has increased the use of BNPL platforms in the MEA area since distant working and social distances have allowed BNPL service providers to build a large client base. The pandemic has increased BNPL's appeal since it offers more flexible financing alternatives and low-interest rates, particularly in the Middle East.
As a result, clients who faced financial difficulties during the pandemics may still shop online. BNPL providers, on the other hand, may make significant income from an increasing number of clients who pay low to no interest rates and merchants who are compensated for utilizing the BNPL payment method to attract more buyers.
The Middle East and Africa market has already had tremendous growth, but because of the unexpected COVID-19 epidemic, the market will experience more growth in 2022. There are several reasons for the sudden interest in BNPL, but they are clearly related to the fast expansion of online commerce.
Furthermore, the rising adoption of mobile banking solutions by users and the growing awareness of BNPL as a payment alternative have prepared the path for an expanded offering in MEA. Finally, the COVID-19 epidemic has created a "perfect storm," moving more business online, improving consumer trust in online buying, and raising the need for personal cash-flow management, at least for certain customers.
Middle East & Africa Buy Now Pay Later Industry Segmentation
The Middle East and Africa buy now pay later services market is segmented based on channel type (Online, POS), enterprises size (Large Enterprises, Small & Medium Enterprises), and by End-User (Consumer Electronics, Fashion & Garments, Healthcare, Leisure & Entertainment, Retail, Others).
| By Channel | |
| Online | |
| POS |
| By Enterprises Size | |
| Large Enterprises | |
| Small & Medium Enterprises |
| By End User | |
| Consumer Electronics | |
| Fashion & Garments | |
| Healthcare | |
| Leisure & Entertainment | |
| Retail | |
| Others |
Middle East and Africa Buy Now Pay Later Services Market Size Summary
The Buy Now Pay Later (BNPL) market in the Middle East and Africa has experienced significant growth, driven by increased e-commerce adoption and the economic shifts caused by the COVID-19 pandemic. The pandemic accelerated the adoption of BNPL services as consumers sought flexible payment options and retailers aimed to boost sales. BNPL platforms have become a popular choice for online shoppers, offering convenient and cost-effective financing solutions. This trend is expected to continue, with BNPL providing an alternative to traditional credit methods, particularly appealing to younger consumers who face affordability challenges. The shift from cash-on-delivery to BNPL has also helped alleviate concerns about online transactions, enhancing consumer trust and increasing conversion rates.
The market is characterized by moderate fragmentation, with key players like Payflex, Tamara, and Postpay leading the charge. These companies are investing heavily in research and development to enhance their technological offerings and expand their market presence through strategic initiatives such as partnerships and acquisitions. The BNPL sector is poised for further expansion, supported by the rising adoption of mobile banking and growing awareness of BNPL as a viable payment option. Recent funding and strategic collaborations, such as those by Lipa Later and Postpay, highlight the ongoing efforts to strengthen market positions and broaden service offerings across the region.
Middle East and Africa Buy Now Pay Later Services Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Insights on Key Forces Shaping the Market
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1.5 Insights on Consumer Trends and Preferences in Buy Now Pay Later Market
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1.6 Porter's Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers/Consumers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitute Products
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1.6.5 Intensity of Competitive Rivalry
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1.7 Insights on Government Regulations in the Market
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Channel
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2.1.1 Online
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2.1.2 POS
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2.2 By Enterprises Size
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2.2.1 Large Enterprises
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2.2.2 Small & Medium Enterprises
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2.3 By End User
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2.3.1 Consumer Electronics
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2.3.2 Fashion & Garments
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2.3.3 Healthcare
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2.3.4 Leisure & Entertainment
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2.3.5 Retail
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2.3.6 Others
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Middle East and Africa Buy Now Pay Later Services Market Size FAQs
What is the current Middle East and Africa Buy Now Pay Later Services Market size?
The Middle East and Africa Buy Now Pay Later Services Market is projected to register a CAGR of greater than 25% during the forecast period (2024-2029)
Who are the key players in Middle East and Africa Buy Now Pay Later Services Market?
Payflex, Tamara, Spotii, Tabby and Postpay are the major companies operating in the Middle East and Africa Buy Now Pay Later Services Market.
