Why Buy Now Pay Later schemes are increasingly gaining traction in the UAE

Why Buy Now Pay Later schemes are increasingly gaining traction in the UAE

In a chain of post-pandemic trends that could make consumers happy once again, BNPL (Buy Now Pay Later) would take the crown for the next few years.

Why wouldn't they opt for this exciting and convenient method of shopping that gives interest-free credit for all low-value bills with a feature of flexibility to choose their payment pattern.

BNPL is now seen as a twofer, benefiting both consumers and merchants; a good alternative to a high-interest credit card usage and cash on delivery.

As digital transactions increasingly become the preferred payment option and consumers look for solutions that are an alternative to the debt-based credit card system, the perfect fintech breakthrough came in the form of BNPL.

The UAE and Saudi Arabia have witnessed an upsurge in the number of companies offering BNPL solutions

In just one year, the Middle East region has witnessed an upsurge in the number of companies offering BNPL solutions. Currently there are more than ten players; many of them well-funded by leading PE and investment firms. Players in the Mena region that have raised substantial funding are Tabby: $32 million, Tamara: $6 million, Postpay: $5.5 million, Spotii: $1 million and Shahry: $0.65 million (Source: MENAbytes and Wamda.com).

They are making their mark