by Market Overview:
Buy now pay later services enable consumers to pay for goods and services in installments. These platforms are gaining immense popularity and are becoming a mainstream payment option owing to their convenience and flexibility provided to consumers. Buy now pay later models help sustain consumer spending by enabling purchases that otherwise may not have been affordable through traditional credit options.
Market key trends:
One of the major trends driving the growth of Mena And Cis Buy Now Pay Later Platform Market is rising adoption of mobile payments. The widespread adoption of smartphones and internet penetration has encouraged digital payment options. Mobile payments are gaining immense popularity owing to their convenience as it enables contactless and seamless payment experience. According to an article by Arab News, in 2021, a study revealed that 70% of UAE residents were using mobile payment options for payments. Moreover, more than 50% of Middle East residents preferred mobile payments over cash or cards. The buy now pay later business model aligns very well with mobile payment trends, as it allows frictionless payments through mobile devices. This is driving several payment providers to launch buy now pay later offerings compatible with mobile wallets and devices.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of alternative payment options pose a moderate threat.
Bargaining power of buyers: Large pool of BNPL providers gives buyers higher bargaining power and ability to switch between providers.
Bargaining power of suppliers: Established merchants have moderate bargaining power due to dependence of BNPL players on merchant partnerships.
Threat of new substitutes: Emerging alternate payment options like cryptocurrency pose a potential threat.
Competitive rivalry: Intense competition exists among established players.
SWOT Analysis
Strengths: Growing e-commerce industry and millennial preference for deferred payments are key strengths.
Weaknesses: Risk of increased customer defaults and reliance on technology infrastructure are weaknesses.
Opportunities: Untapped international markets especially in developing regions present opportunities.
Threats: Stringent regulations around data privacy and security pose threats to growth.
Key Takeaways
The Mena And Cis Buy Now Pay Later Platform Market is expected to witness high growth, exhibiting CAGR of 8.2% over the forecast period, due to increasing preference for deferred payment options among millennial customers. The Middle East & North Africa region currently dominates with 32% market share and is expected to grow at a faster rate due to adoption of digital payments in the region.
Regional analysis Regional analysis of Mena And Cis Buy Now Pay Later Platform Market indicates the fastest growth will be witnessed in Middle East & North Africa region growing at a CAGR of 10.5% owing to increasing internet and smartphone penetration driving online shopping. Countries like United Arab Emirates, Saudi Arabia and Turkey are major revenue generators currently.
Key players operating in the Mena And Cis Buy Now Pay Later Platform Market are Afterpay, Holdings Inc., Klarna Bank AB, Laybuy Group Holdings Limited, Payl8r (Social Money Ltd.), PayPal Holdings Inc., Perpay, Quadpay, Sezzl, Splitit. These players are focusing on partnerships with merchants and financial institutions to expand into newer markets.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
