Middle East Buy Now Pay Later market predicted to explode over 1100% by 2030

BNPL (buy now, pay later) market in the Middle East is predicted to see an exponential growth in the next few years to reach around $90 billion by 2030, setting off expansion frenzy among leading industry players in the region.

The projected market size will be over a 12-fold jump from the $7.18 billion in 2021, estimated by Precedence Research, a global market research and consulting firm across industry verticals.

UAE-based leading BNPL player Cashew is among the firms which are gearing up to embark on an aggressive expansion plan in the region.

“The effects of Covid-19 ignited the BNPL industry, particularly in the MENA region, as many companies profited from being available online and having a payment solution that eased cash flow on consumers, many of whom were affected by unemployment and financial uncertainties caused by the pandemic,” Ammar Afif, chief executive officer and co-founder of Cashew, told Arabian Business.

“The [pandemic] period validated the industry when we saw growth and adoption at a faster clip,” Afif said.

Cashew has a partnership with Mashreq, which allows the venture to offer a wide range of products, longer tenure and higher ticket options to consumers.

Afif said the fact that several players came into the market at the same time, creating a highly competitive environment for signing on merchants also helped the industry in the region to expand faster.

Afif said the favourable market conditions in the GCC and the wider MENA region offer high potentials for faster expansion plans to existing industry players, adding that the venture was set for a major expansion in the region in the next few months.

According to the Fintech Times, the global BNPL transaction volume could reach $700 billion by 2025.

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