Buy Now Pay Later (BNPL) platforms provide an alternative to traditional credit cards by allowing customers to divide the total cost of a purchase into installments. BNPL is gaining popularity in the Middle East, North Africa, and Commonwealth of Independent States (CIS) regions as it offers consumers interest-free options and merchants improved conversion rates. The key advantages of BNPL include increased sales for merchants, budget-friendly payments for customers, and reduced credit risks compared to credit cards. With the growth of e-commerce and rise of millennial and Gen Z consumers who prefer flexibility over lump sum payments, the need for BNPL platforms is increasing across diverse industry verticals including electronics, fashion, home furnishings, travel, and healthcare. 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.
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 key opportunities in the market include collaborations with merchants across sectors to promote BNPL payments and partnerships with banks to penetrate deeper regions. Technological advancements such as development of omnichannel POS platforms and customized repayment plans based on customer preferences are fueling adoption of BNPL solutions in MENA and CIS.
The growth of the e-commerce industry enabled by high smartphone and internet penetration is a major market driver. Rising adoption of BNPL platforms by millennials and Gen Z consumers attracted to pay later flexible payment options is propelling the market growth. Increasing spending power of the middle-class population coupled with expanding retail sector across MENA and CIS are factors expected to boost demand for BNPL platforms during the forecast period.
Current challenges in the MENA and CIS Buy Now Pay Later Platform Market
The MENA and CIS region is witnessing rapid economic growth and rising disposable income levels. However, certain challenges continue to hinder the mass adoption of Buy Now Pay Later platform in the region. High interest rates along with stringent lending norms restrict easy access to credit for the general population. Lack of financial literacy among consumers also leads to overspending through BNPL schemes. Regulatory policies are still evolving in many countries to properly address consumer protection issues associated with BNPL models.
Strength: Platforms can provide access to credit for large population without collateral. Virtual try & pay experience helps drive online shopping.
Weakness: Lower penetration in rural areas. Limited payment options increase default risk.
Opportunity: Growing e-commerce market presents significant potential. Tech adoption on the rise especially among youth.
Threats: Strict regulations can impact business models. Economic uncertainties may increase delinquencies.
Geographical regions of concentration
The MENA region accounts for over 45% share of the total BNPL market value led by countries like Saudi Arabia, UAE and Egypt. Growing internet usage, awareness about deferred payments and strong purchasing power are driving factors.
Fastest growing geographical region
Central Asian countries within the CIS region are projected to witness the fastest expansion at an annual rate of over 15% during the forecast period. Rising young population, expanding middle class and improving digital infrastructure provide opportunities for BNPL platforms to penetrate new markets.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it