Buy Now Pay Later services provide customers an alternative payment mechanism that allows them to purchase items upfront and pay for them later, usually within 30-45 days of completion of the purchase. These services provide customers a temporary period where payment can be delayed without any interest charges. This enables customers, especially young customers to spend responsibly and within their means by avoiding paying for a purchase in one go. The increasing digital payments adoption and rising demand for a flexible payment option amongst digitally savvy consumers is driving the demand for BNPL services.

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 2031.

Key Takeaways

Key players operating in the MENA and CIS Buy Now Pay Later Platform 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 MENA and CIS Buy Now Pay Later Platform Market Growth include rise in ecommerce adoption, growth of digital wallet usage, emergence of SMEs and expansion of cross-border purchases. Emergence of AI and ML based risk assessment tools is also enabling BNPL providers to serve more customers responsibly.

Technological advancement like open banking APIs, AI-based underwriting, are enabling BNPL platforms to streamline operations, enhance user experience and onboard more merchants. Emergence of 5G technology will further fuel the growth of BNPL platforms in the region.

Market Drivers

Increasing internet and smartphone penetration in the region is propelling the adoption of digital payment methods like BNPL. Rapid growth of digital commerce platform and changing retail landscape is creating opportunities for BNPL players to partner with merchants. Growing preference of young customers for deferred payment is a key factor driving the demand for easy and flexible BNPL payment options in the region. Economic uncertainties caused due to Covid pandemic also accelerated the popularity of BNPL services.

Current Challenges in MENA and CIS Buy Now Pay Later Platform Market

The MENA and CIS Buy Now Pay Later platform market faces several challenges currently which restrict its growth. High interest rates charged by platform companies reduce affordability for customers. Lack of adequate regulatory frameworks in some countries lead to irresponsible lending practices. Platforms do not do proper due diligence before approving loans which results in higher default rates. This impacts their profitability adversely. Cultural mindset of delayed or installment payments is not very strong in this region. People prefer saving upfront to purchase big-ticket items which hinders rapid adoption of BNPL models.

SWOT Analysis

Strength: Easy financing option for consumers to manage cashflows better without paying upfront; helps drive sales for merchants.

Weakness: Higher default risk if proper lending assessment is not carried out; interest costs eat into profits of platforms.

Opportunity: Growing e-commerce industry presents large addressable market; cultural shift can boost deferred payment acceptance.

Threats: Stringent regulations can restrict certain practices; economic slowdowns increase delinquencies challenging stability.

Geographical Regions – Market Value Concentration

The MENA region accounts for over 60% of the total BNPL platform market value currently led by countries like Saudi Arabia and United Arab Emirates. Strong e-commerce sectors and availability of digital payments have propelled growth.

Fastest Growing Geographical Region

Central Asian countries within CIS are projected to emerge as the fastest growing sub-region through 2031. Nations like Kazakhstan, Uzbekistan and Azerbaijan will experience accelerated economic development and expanding internet usage among young populations will aid rapid uptake of alternative payment solutions like BNPL.

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