How are changing market conditions in Mena impacting BNPL?

How are changing market conditions in Mena impacting BNPL?

The momentum realised in the buy now, pay later (BNPL) e-commerce space has also carried over to brick-and-mortar sales. The shifting monetisation strategies are largely seen as a way to ensure sustainability as cash burn continues to rein in the growth of the sector.

Hosam Arab, CEO and co-founder of Tabby, says that brick-and-mortar retail is a key area of focus for his startup and a "natural extension” of its offerings.

“I think [Mena is] still largely an offline retail market. It is an area that we've been focused on for a while right now, and we ensure that our customers are able to use us across platforms and channels rather than just within a single online channel. The opportunity is quite significant, it’s close to 90 per cent of retail happening offline and that's the area where we see a lot of potential growth going forward," he explains.

The vast market opportunity in offline retail has driven the rise of startups looking solely to serve offline merchants. This includes Madfu, a Saudi Arabia-based BNPL focused on businesses in the entertainment industry, positioning itself as an “enjoy now pay later” company.

“The plenitude of BNPL solutions in the market