MENA and CIS Buy Now Pay Later Platform Market is Anticipated to Witness High Growth
MENA and CIS Buy Now Pay Later Platform Market is Anticipated to Witness High Growth
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.

The MENA and CIS buy now pay later platform market enables customers to purchase goods and services through interest-free installment plans or deferred payment without any processing fees. Buy now pay later services provide more flexible repayment options to customers and help drive sales for merchants. These platforms are facilitating financial inclusion in the region by granting short-term credit access to young consumers and thin-file customers. The growing e-commerce industry and rise of digital-first companies in the Middle East, North Africa, and CIS countries have increased the adoption of alternative payment methods like buy now pay later services.

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. These players are focusing on strategic partnerships and acquisitions to expand their geographical presence in the fast-growing MENA and CIS region.

The MENA and CIS Buy Now Pay Later Platform Market Demand region offers significant growth opportunities for buy now pay later players owing to the rising young population, growing e-commerce sales, and the advancement of digital payment solutions. Buy now pay later platforms can help merchants increase average order values and conversion rates by offering customers flexible payment options.

Global buy now pay later giants like Klarna, Afterpay, and PayPal are looking to establish themselves in the MENA and CIS markets and have started expanding operations through partnerships with regional fintechs and merchants. Their entry is expected to intensify competition and drive masses adoption of buy now pay later services in the region over the coming years.

Market Drivers

Rising financial inclusion is one of the key drivers of the MENA and CIS buy now pay later platform market. The alternative credit scoring models and underwriting techniques adopted by buy now pay later players are facilitating access to short-term installment loans for young adults and consumers with limited credit histories in the region. This is improving debt penetration and fueling the adoption of digital payment methods.

Market Restraints

Lack of strong data protection regulations in some MENA and CIS countries poses a challenge for buy now pay later providers to securely collect, process, and store growing customer data volumes. Data privacy and security concerns, if not properly addressed, can limit the mass adoption of buy now pay later platforms in the region.

Segment Analysis

The MENA and CIS Buy Now Pay Later Platform Market is currently dominated by the urban sub segment. The adoption rate of BNPL services is higher among consumers residing in metropolitan areas and tier I cities. Factors such as higher discretionary income, easy access to digital devices and financial services ,and exposure to modern payment gateways have made urban populations early adopters of deferred payment options. Consumer behavior analysis shows BNPL being used widely for large ticket discretionary purchases like electronics, home appliances and international travel by urban users.

Global Analysis

The MENA and CIS region is projected to witness tremendous growth in BNPL adoption over the coming years. Within the region, Gulf Cooperation Council countries will see accelerated BNPL penetration due to high internet and smartphone access. Spending power of consumers has increased manifold in GCC nations like UAE and Saudi Arabia in last decade thereby boosting discretionary consumption. Countries like Turkey and Egypt will emerge as high potential developing markets driven by fast growing middle class and rising digital payment volumes in e-commerce. However, adoption rate across Central Asian nations is currently modest given lower digital infrastructure and financial inclusion as compared to Gulf and Levant nations. Collaborations between regional fintechs and international BNPL players will be key for the industry's progress.

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