The MENA and CIS Buy Now Pay Later Platforms industry in the Middle East and North Africa (MENA) and Commonwealth of Independent States (CIS) regions has seen tremendous growth over the past few years as consumers shift to more flexible payment options. Platforms providing BNPL services have disrupted traditional credit models by allowing shoppers to split the cost of purchases into simple installment plans. With millennials and Gen Z representing a significant portion of the population in these regions, demand for financial technology solutions tailored to digital native consumers continues rising.
According to a recent report by BNP Paribas, MENA and CIS Buy Now Pay Later Platforms transaction value totaled over $2.5 billion in 2021 and is projected to grow at a compound annual growth rate of 25% through 2026. Leading fintech investment in the region have also fueled the expansion of companies offering BNPL solutions. In the CIS, Russia dominates BNPL adoption with the market valued at over $600 million last year. As e-commerce penetration increases across both regions on the back of rising smartphone and internet usage, BNPL is expected to account for a greater share of online sales.
Key Players and Business Models
Numerous startups have launched to tap into the vast opportunities presented by the growing BNPL segment. Among the prominent names, Tabby and PostPay have emerged as frontrunners in the MENA and CIS Buy Now Pay Later Platforms space. Tabby provides interest-free installment plans for purchases on partner retailers' sites and applications. Users create Tabby accounts to shop and receive electronic bills. PostPay partners directly with merchants to offer BNPL at checkout; it does not issue physical cards but instead settles transactions digitally.
In Russia, MarketPay and Twis took the lead in terms of transaction volumes and merchant reach in 2021. MarketPay works with over 4000 online stores across Russia and provides credit limits from 3000-300,000 rubles for terms between 2-36 months. Twis allows Russian customers to pay for purchases from over 700 merchant partners over 3-36 months depending on the order amount. Both platforms run hard credit checks and charge late fees to minimize losses.