May 29, 2024
MENA and CIS Buy Now Pay Later Platform Market

The Rise of Buy Now Pay Later Platforms in the MENA and CIS Region is Accelerating Adoption and Growth in Digital Payments

The MENA and CIS buy now pay later (BNPL) platform market is witnessing increased growth, enabling customers to acquire goods and services upfront and pay later or in instalments. BNPL platforms provide an alternative to credit cards, interest-free instalment plans for e-commerce purchases, bill payments and everyday expenses. These platforms have made payments more accessible and convenient for consumers across the region. The Global MENA and CIS Buy Now Pay Later Platform Market is estimated to be valued at US$ 1554.49 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2030.

BNPL services are gaining widespread acceptance due to the growth of e-commerce and m-commerce in the region. These platforms address the cash flow issues faced by consumers and allow merchants to increase sales by providing payment flexibility. BNPL providers also help build credit history for those with limited or no credit scores. The rising internet and smartphone penetration coupled with young demographics is driving the demand for digital payment options. BNPL’s interest-free attribute makes it an attractive alternative to credit cards for everyday spends.

Key Takeaways

Key players operating in the Global MENA And CIS BNPL Platform Market Size are Toray Industries, Inc., Avery Dennison Corporation, Nan Ya Plastics Corporation, Jindal Poly Films Ltd (B.C. Jindal Group), Uflex Limited, SRF Limited, Cosmo Films Limited, API Group Plc, K LASER Technology Inc., and Polinas Plastik Sanayi ve Ticaret A.S.

The growing demand for BNPL services across major industries such as retail, healthcare, home improvement, travel and hospitality is fueling market growth. BNPL payments are witnessing increased adoption due to the flexibility and convenience offered to consumers.

Major BNPL providers are expanding globally through strategic partnerships and acquisitions to penetrate newer markets. They are investing in technology and infrastructure to scale operations across diverse geographies and enhance customer experience.

Market Key Trends

One of the key trends gaining traction in the MENA and CIS BNPL platform market is the rise of “Buy Now Pay Smarter” options. This concept promotes the responsible use of BNPL by offering features like budgeting tools, spending controls and credit scoring. BNPL providers are actively collaborating with banks, fintechs and merchants to offer enriched payment experiences customized to individual needs and behaviors. This transition towards a more guided and regulated BNPL model is expected to increase adoption while mitigating risks of overspending and late payments.

Porter’s Analysis

Threat of new entrants: New entrants face high investment costs to establish brand recognition and gain consumer trust in the market. Bargaining power of buyers: Individual consumers have low bargaining power as they lack bargaining leverage with larger platforms. Bargaining power of suppliers: Platforms can source from multiple payment processors and lending partners, reducing suppliers’ bargaining power. Threat of new substitutes: New alternative buy now pay later models and credit cards pose threats of substitution. Competitive rivalry: Platforms compete intensely on various parameters like pricing, payment flexibility, credit approval rates to gain and retain customers.

Geographical Regions

The MENA region accounts for around 35% of the total market value, driven by high smartphone and internet penetration along with growing e-commerce adoption in countries like Saudi Arabia and UAE. Russia and other CIS nations collectively comprise over 25% share owing to increasing affordability of smartphones and preference for digital financial services among young consumers in urban areas.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it