Mena and CIS BNPL Market Poised for Strong Growth on Rising Adoption of Digital Payment Solutions
Market Overview:
The Mena and CIS BNPL market enables consumers to purchase goods and pay for them in installments. This payments solution allows merchants to increase sales by offering customers interest-free payment terms. Key uses of BNPL platforms include fashion, home goods, electronics, travel, and more.
Market Dynamics:
The growth of the Mena and CIS BNPL market is driven by two major factors. Firstly, the increasing adoption of digital payment solutions across Mena and CIS countries is fueling market growth. Younger consumers in particular prefer the convenience of paying digitally using BNPL platforms rather than traditional methods. Secondly, BNPL services help merchants increase average order values and boost sales by offering flexible payment options to customers. This factor is encouraging more retailers to integrate BNPL solutions at checkout.
Market key trends:
The Mena And Cis Buy Now Pay Later Platform Market has seen rising adoption in recent years. One key trend driving growth is the rising preference of millennials and gen z consumers for the flexibility and convenience offered by BNPL services when making purchases. BNPL allows customers to split their purchase into interest-free installments, rather than paying the whole amount upfront. This appeals greatly to younger shoppers with lower incomes or creditworthiness. Furthermore, as e-commerce sees continued expansion in the region, BNPL platforms act as a bridge between online retailers and consumers, simplifying transactions and encouraging higher purchase values.
SWOT Analysis
Strengths: BNPL platforms provide a simpler payment option compared to credit cards which boosts merchants' sales. They also help build consumers' credit history over time.
Weaknesses: BNPL services involve additional costs for merchants in the form of transaction fees. Late and missed payments also increase risks for platforms.
Opportunities: Continued growth of e-commerce and financial inclusion in emerging markets offer major opportunities. Partnerships with banks can further drive the sector's expansion.
Threats: Strict regulations around lending practices could adversely impact growth prospects for some businesses. Established players may also face competition from new entrants.
Key Takeaways
The Mena and CIS buy now pay later platform market size was valued at US$ 1152.6 Mn in 2023. The market is expected to witness high growth, exhibiting a CAGR of 8.2% over the forecast period to reach US$ 2019.5 Mn in 2030 due to growing consumer preference for flexible payment options.
Regional analysis: Countries across MENA and CIS are expected to drive significant market growth. The UAE and Saudi Arabia hold the largest BNPL platforms market share currently due to high e-commerce penetration and spending power. Emerging markets such as Egypt and Turkey are projected to exhibit strong growth over 2022-2030 backed by rapidly growing younger population segments and expanding internet usage.
Key players: Afterpay, Holdings Inc., Klarna Bank AB, Laybuy Group Holdings Limited, Payl8r (Social Money Ltd.), PayPal Holdings Inc., Perpay, Quadpay dominate the BNPL space in the region. These companies are investing heavily in partnerships with retailers and banking institutions to strengthen their positions.
Read More:
https://perfectinsights.blogspot.com/2023/10/mena-and-cis-buy-now-pay-later-platform.html
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