The “Research and Markets” report expects the market for the “Buy Now, Pay Later BNPL” installment payment system in the UAE to grow by 19.6% on an annual basis, to reach about $2.6 billion (about 9.5 billion dirhams), during the current year, driven by the strong growth of the market, during the past four quarters, supported by the expansion of e-commerce.
According to the report, the market is achieving strong results in the medium and long term, maintaining its increasing growth, and is expected to record a compound annual growth rate of 12.3% during the period from 2023 to 2028, and the total value of goods traded through this system in the Emirates is expected to increase from $2.2 billion (more than 8 billion dirhams in 2022, to $4.7 billion (about 17.27 billion dirhams) by 2028.
Growth factors
Factors such as the strong Internet infrastructure, the growing e-commerce market, and digital payment systems have contributed to supporting the growth of this sector in the Emirates, especially with the growth in the number of consumers who shop online in 2022, compared to 2021, which was translated by increased reliance on the system. Buy now, pay later. According to the report, more than 37% of consumers relied on this system in the Emirates during 2022, compared to 24% of consumers during 2021.
New products
The report indicates that the significant increase in credit card penetration in the UAE has led to consumers flocking in increasing numbers to interest-free “buy now, pay later” plans offered by financial technology companies such as Tabby and Tamara in the country.
Within the next three to four years, the report expects that the system will open the way for new products to provide their services through the installment payment system, such as travel, education, insurance, and health care, which will support the growth of the industry and its adoption among consumers from a short to medium-term perspective.
2023-11-21 22:01:20
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