UAE to see increased demand for BNPL services

UAE to see increased demand for BNPL services

Consumer appeal, accessibility, and the assurance of no interest or fees - as long as payments are made on time - have been the main driving forces behind the growth of Buy Now Pay Later (BNPL) services across the UAE and MENA region, experts have said.

Nick Curran, head of Endava in the Middle East, and North Africa, says that BNPL has become one of the most prominent retail trends due to the effects of the Covid-19 pandemic and the exponential growth of e-commerce.

The Middle East has witnessed a steady increase in demand for BNPL services. According to research by consultant RedSeer, 10 per cent of UAE online consumers employed the BNPL model in 2020. This percentage is expected to rise to 30 per cent by 2026, accumulating more than $2 billion in consumer credit.

Curran says that BNPL is well-liked among all demographics for many reasons, but it is particularly well-liked among millennial and Gen Z customers as a tool for financial empowerment. “Customers benefit from rapid gratification, a flexible return policy, easy access to credit, and the ability to manage their finances by spreading the cost of purchases over a predetermined time frame.”

For retailers, he noted that BNPL boosts sales,