DUBLIN–(BUSINESS WIRE)–The “Middle East and Africa Buy Now Pay Later Services Market – Growth, Trends, Impact of COVID-19 and Forecast (2022-2027)” report has been added to from ResearchAndMarkets.com offer.
The Buy Now Pay Later (BNPL) payments industry in Africa and the Middle East has grown rapidly over the past four quarters, helped by the growing penetration of e-commerce and the impact of the epidemic-induced economic slowdown of Covid-19.
Buy Now Pay Later (BNPL) services have grown in popularity among e-commerce businesses and their customers over the past few years. The repercussions of Covid-19 triggered these phenomena, and it looks like the Buy Now Pay Later (BNPL) platform industry will continue to thrive even after the outbreak. The reasons are simple: BNPL is a convenient and less expensive option to get fast loans for online purchases.
The COVID-19 outbreak has increased the use of BNPL platforms in the MEA area as remote working and social distancing has enabled BNPL service providers to build a large customer base. The pandemic has increased the attractiveness of the BNPL since it offers more flexible financing alternatives and low interest rates, especially in the Middle East.
Therefore, customers who encountered financial difficulties during the pandemics can still shop online. BNPL providers, on the other hand, can derive significant revenue from an increasing number of customers who pay low or zero interest rates and merchants who are compensated for using the BNPL payment method to attract more of buyers.
The Middle East and Africa market has already witnessed phenomenal growth, but due to the unexpected outbreak of COVID-19, the market will witness more growth in 2022. There are several reasons for the sudden interest for BNPL, but they are clearly linked to the rapid development of e-commerce.
In addition, the increasing adoption of mobile banking solutions by users and the rising awareness of BNPL as a payment alternative have paved the way for an expanded offering in the MEA region. Finally, the COVID-19 outbreak has created a “perfect storm,” moving more businesses online, improving consumer confidence in online shopping, and increasing the need for personal cash flow management, less for some customers.
Main market trends
E-commerce growth in the Middle East and Africa is accelerating
People were concerned about shopping online and entering financial information on third-party websites before COVID. In the Middle East, cash on delivery (COD) helped solve this problem, but it also introduced new barriers to expansion. BNPL contributes to the solution. It allows shoppers to “test before you buy” and relieves retailers of the collection burden.
BNPL companies like Tamara have done a great job of building trust and reassuring buyers of BNPL’s security. There is said to be an almost 10% to 30% increase in conversion and a 30% to 85% increase in average order value in the Middle East and Africa.
Growing Gen Z population in the region will increase demand for BNPL services
Additionally, half of MEA’s citizens are under the age of 30 – the largest youth population in the world. Young people in the Middle East and Africa face affordability, especially if paid monthly. BNPL has succeeded by allowing millennials and Gen Zers to buy low-cost everyday goods like clothes and food while they wait for their paycheck.
BNPL offers consumers a short-term credit alternative that does not require them to build up balances or undergo credit checks. The amount of the transaction is simultaneously limited. People are migrating from credit cards to BNPL in droves. It is not a credit service that consumers must apply for; rather, it is a commodity offered on demand.
The buy now pay later market in the Middle East and Africa is moderately fragmented, with some major players like Payflex, Tamara and Postpay operating in the market.
Major market players are spending heavily on R&D to improve the technological features of buy now pay later systems. Several strategic endeavors have been explored by industry players, including the provision of various product lines, joint ventures, mergers, acquisitions, and partnerships.
These strategies help companies and industry participants establish a greater presence in the MEA region. Buy now, pay later.
Main topics covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Constraints
4.4 Overview of Major Forces Shaping the Market
4.5 Overview of Buy Now Pay Later Market Trends and Consumer Preferences
4.6 Porter’s Five Forces Analysis
4.7 Overview of Government Regulations in the Market
4.8 Impact of COVID-19 on the market
5 MARKET SEGMENTATION
5.1 Per channel
5.2 By business size
5.2.1 Large companies
5.2.2 Small and medium enterprises
5.3 By end user
5.3.1 Consumer electronics
5.3.2 Fashion and clothing
5.3.4 Recreation and Entertainment
6 COMPETITIVE LANDSCAPE
6.1 Overview of Market Competition
6.2 Company Profiles
6.2.7 Later Lipa
6.2.10 Thanks UCash
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information on this report, visit https://www.researchandmarkets.com/r/mbnox