In June 2022, Tamara, one of the leading BNPL platforms based in Saudi Arabia, announced that the firm is set to expand its operations in the United Arab Emirates. Consequently, domestic BNPL firms are considering regional expansion to capitalize on the high growth potential of the Middle Eastern BNPL industry. In 2022, the adoption of deferred payment services is expected to grow significantly, especially in the United Arab Emirates. While Gen Z and millennials have been the early adopters of the BNPL payment method in Saudi Arabia, the trend is expected to accelerate among consumers across different age groups over the next three to four years.ĭomestic BNPL firms are considering regional expansion to drive market share and growth Following the worldwide pandemic epidemic, markets like Saudi Arabia also have experienced a rapid increase in short-term credit options, such as buy now pay later (BNPL). The global pandemic-induced lockdowns and social distancing measures accelerated the consumer shift to online payment and other digital financial services. The new value-added service, FlexiAdvance, is projected to further assist SMEs in accelerating their business growth by accessing funding through the Payflex platform.Īs the credit demand among SMEs grows in South Africa in times of global economic uncertainties, the publisher expects more firms to enter into the B2B BNPL segment in South Africa in short to medium-term. In South Africa, Payflex merchants have achieved 30% higher average order values by offering the BNPL service to customers. Under the collaboration, the firms have launched FlexiAdvance, the service which will offer SMEs access to funding within 24 hours of application. In March 2022, Payflex and Merchant Capital, the two South African Fintech firms, announced the launch of a cash advance solution that aims to offer credit services to small and medium-sized retailers in the country. 
Similar trends are visible in South Africa, where BNPL providers target the B2B segment in 2022.
Globally, BNPL providers are targeting the B2B segment to drive the next growth phase after gaining widespread popularity among consumers over the last two years. Over the next three to four years, more businesses are anticipated to increase investment and expand their presence throughout the MENA area as the market expands and competition continues to heat up.īNPL providers are targeting the B2B segment to drive the next growth phase in South Africa The e-commerce sector's explosive rise in the Middle East and North Africa will also help the BNPL market expand. Over the past four to eight quarters, the use of buy now, pay later (BNPL) goods and services has steadily increased in the Africa & Middle East region. The BNPL Gross Merchandise Value in the region will increase from US$7,475.3 million in 2021 to reach US$82,971.0 million by 2028. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 36.1% during 2022-2028. Medium to long term growth story of BNPL industry in Africa & Middle East remains strong. The BNPL payment industry in Africa & Middle East has recorded strong growth over the last four quarters, supported by increased ecommerce penetration along with the impact of economic slowdown due to disruption caused by Covid-19 outbreak.Īccording to the publisher, BNPL payments in the region are expected to grow by 74.6% on an annual basis to reach US$13,053.4 million in 2022. 14, 2022 (GLOBE NEWSWIRE) - The "Africa & Middle East Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to 's offering.
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