Dublin, Feb. 16, 2024 (GLOBE NEWSWIRE) -- The "Africa & Middle East Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
BNPL payments in the region are expected to grow by 22.4% on an annual basis to reach US$15.5 billion in 2024.
The medium to long-term growth story of the BNPL industry in the region remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 16.1% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$12.6 billion in 2023 to reach US$32.6 billion by 2029.
The buy now pay later market is poised to grow at an accelerated pace in the Middle East and Africa markets over the medium term. The growth will be driven by the rising credit demand among consumers across age groups. In the Middle East, for instance, consumers are using the payment solution for luxury as well as essentials-related purchases. This trend is projected to continue in 2024, aiding the broader industry growth.
In Africa, too, the demand for credit is driving the adoption of buy now pay later schemes. With a significant chunk of the regional population falling in the unbanked and underbanked category, the adoption is poised to grow over the medium term. Overall, the publisher maintains a positive growth outlook for the buy now pay later industry in the Middle East and Africa region over the next three to four years.
BNPL firms are raising capital to meet the growing demand for installment payment solutions in the Middle East
With adoption rising and the sector poised to record strong growth, BNPL providers in the Middle East are raising funding rounds from venture capital and private equity firms to accelerate the growth of their gross merchandise value.
Tabby, one of the leading UAE-based BNPL firms, announced that the firm had secured US$700 million in debt financing from JPMorgan, while also extending its Series D round to US$250 million in November 2023. The capital round further strengthens the position of Tabby in the domestic and regional markets, where it manages more than US$6 billion in annualized transaction volume. Tabby, notably, serves more than 10 million users and has partnered with over 30,000 brands. The firm has been innovating with its product lineup, as it seeks to better meet the evolving needs of its users.
Tamara, in December 2023, announced that the firm had raised US$340 million as part of its Series C funding round, at a valuation of more than US$1 billion. The capital round was led by investors like SNB Capital and Sanabil Investments. Pinnacle Capital, Impulse, and Shorooq Partners also participated in the Series C round. The firm, in November 2023, also raised US$250 million in debt financing. Tamara has been growing at a rapid rate in the region. With a presence in Saudi Arabia, Kuwait, and the Emirates, it has more than 10 million registered users and over 30,000 merchant partners.
From the short to medium-term perspective, the publisher expects more firms to raise capital across the region. These will subsequently aid innovation and the competitive landscape of the fast-growing BNPL industry in the Middle East.
Firms are forging strategic alliances to widen the distribution of their BNPL product offering in Africa
With demand for BNPL rising among South African consumers, providers are entering into strategic partnerships to widen the distribution of their product, while targeting higher gross merchandise value.
PayJustNow, one of the leading BNPL providers in South Africa, partnered with retailer Makro in November 2023. The collaboration will enable BNPL users to make in-store payments at all of the 22 stores across the country. With this partnership, PayJustNow has extended its presence to over 2,500 retail brands, including names like Samsung, Game, and PnP Clothing.
PayJustNow has been growing at a rapid rate in the South African market. The firm registered its 1 million user at the end of August 2023. This is significantly higher compared to 649,000 users at the end of 2022. With slow economic growth and inflationary pressure, the number of users is expected to rise further in 2024, supporting the growth of the broader BNPL industry in Africa.
BNPL regulatory activities are picking up pace in the Middle East market amid rising consumer adoption
The UAE Central Bank, in December 2023, announced new regulations to oversee BNPL services. According to the Central Bank, businesses providing BNPL services must operate as agents of licensed banks or financial institutions, with approval from the central bank. Fintech companies in the BNPL sector can also offer short-term credit services after obtaining a license as restricted license finance companies.
Unlicensed entities providing short-term credit must either apply for a license or collaborate with licensed banks to continue their services. The central bank has defined short-term credit as credit granted for up to 12 months for purchasing goods or services without interest, collateral, or a security deposit.
The Saudi Central Bank, in December 2023, also announced new regulations for the fast-growing BNPL industry. The rules announced by the Central Bank include provisions regarding licensing requirements and other regulatory measures such as information security standards, internal policies, and measures to combat financial crimes. Furthermore, requirements have been announced to better protect consumers. This includes defining limits for credit and activities. The new regulations announced by the Central Bank are expected to support and contribute towards the sustainable growth of the market over the medium term.
A Bundled Offering Combining 8 Reports - 1 Regional Databook and 7 Country Databooks
- Africa & Middle East Buy Now Pay Later Business and Investment Opportunities (2020-2029)
- Egypt Buy Now Pay Later Business and Investment Opportunities (2020-2029)
- Israel Buy Now Pay Later Business and Investment Opportunities (2020-2029)
- Kenya Buy Now Pay Later Business and Investment Opportunities (2020-2029)
- Nigeria Buy Now Pay Later Business and Investment Opportunities (2020-2029)
- Saudi Arabia Buy Now Pay Later Business and Investment Opportunities (2020-2029)
- South Africa Buy Now Pay Later Business and Investment Opportunities (2020-2029)
- United Arab Emirates Buy Now Pay Later Business and Investment Opportunities (2020-2029)
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 783 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $15.5 Billion |
| Forecasted Market Value (USD) by 2029 | $32.6 Billion |
| Compound Annual Growth Rate | 16.1% |
| Regions Covered | Africa, Middle East |
Scope
BNPL Market Size and Spending Pattern, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Buy Now Pay Later Revenue Analysis, 2020-2029
- 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, 2020-2029
- Buy Now Pay Later Active Consumer Base
- Buy Now Pay Later Bad Debt
BNPL by Purpose, 2020-2029
- Convenience - Short Term Loans
- Credit - Long Term Loans
BNPL by Business Model, 2020-2029
- Two-Party (BNPL offered by retailers)
- Three-Party BNPL Offering
BNPL by Merchant Ecosystem, 2020-2029
- Open Loop System
- Closed Loop System
BNPL by Distribution Model Analysis, 2020-2029
- Standalone
- Banks & Payment Service Providers
- Marketplaces
Buy Now Pay Later Market Share Analysis by Key Players
BNPL Analysis by Channel, 2020-2029
- Online Channel
- POS Channel
Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029
- 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, 2020-2029
- 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, 2020-2029
- 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, 2020-2029
- 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, 2020-2029
- 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, 2020-2029
- 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, 2020-2029
- 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
- Average Monthly Expense segments
For more information about this report visit https://www.researchandmarkets.com/r/3hzdms
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