MENA and CIS Buy Now Pay Later Platform Market To Witness High Growth Owing to Rising Adoption Among Millennials and Gen Z

 These platforms are convenient as they help people avoid accumulating debt by spreading payments over a period. The payment options relieve budgetary constraints for buyers and give them an opportunity to purchase non-essential items. Products requiring such installment payments include consumer electronics like smartphones and laptops, home appliances, fashion apparel, and accessories. Global consumer spending has witnessed significant growth in recent years driven by expanding consumer bases in emerging markets. The young and growing millennial and Gen Z populations in the region rely on digital payment modes for shopping. Ease of access through mobile devices and flexibility in repayment schedules has boosted the adoption of BNPL platforms.

The Global MENA and CIS Buy Now Pay Later Platform Market is estimated to be valued at US$ 1554.49 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Global MENA And CIS BNPL Platform Market Size are Toray Industries, Inc., Avery Dennison Corporation, Nan Ya Plastics Corporation, Jindal Poly Films Ltd (B.C. Jindal Group), Uflex Limited, SRF Limited, Cosmo Films Limited, API Group Plc, K LASER Technology Inc., and Polinas Plastik Sanayi ve Ticaret A.S. These companies are gaining strong footholds through partnerships with retailers and e-commerce portals.

The region offers lucrative expansion opportunities fueled by rapid economic development, growth of internet and smartphone users, and increasing willingness to use digital financial services for payments. Furthermore, demand for international and niche brands from young working professionals and rising affluence present new markets yet to be tapped fully.

Key players are eyeing strategic acquisitions and partnerships for consolidating their presence across the broader MENA and CIS geography. Local partnerships help global BNPL providers to optimize operations as per country-level regulatory norms and cultural preferences, accelerating overall market penetration.

Market drivers:

The growing millennial and Gen Z demographic adopting modern payment solutions for discretionary purchases is a key driver. Rising smartphone and internet penetration coupled with government support for digital initiatives are supporting the driver.

Market restraints:

Risk of default payment by users and lack of adequate regulations can impede market growth. Cultural preferences for cash still influence segments in rural areas, acting as a potential restraint.

Segment Analysis

The MENA and CIS Buy Now Pay Later Platform market is dominated by the e-commerce sub segment. E-commerce accounts for over 60% share of the total market currently. The rising adoption of online shopping across Middle East and CIS countries is driving demand for BNPL platforms from e-commerce merchants. Customers prefer buying goods online and paying for them later in installments instead of paying the whole amount upfront. This trend is boosting the BNPL e-commerce sub segment growth. Other prominent sub segments include retail and travel. However, their shares are comparatively smaller with retail accounting for around 30% and travel holding under 10% share.

Global Analysis

The Middle East and North Africa region currently holds the largest share in the MENA and CIS Buy Now Pay Later Platform market. Countries such as Turkey, Saudi Arabia, and UAE are witnessing high uptake of BNPL payment options. Favorable government initiatives to promote digital payments along with rising affluence among consumers have accelerated BNPL adoption. The MENA region commands over 45% share currently. Meanwhile, the Commonwealth of Independent States region represents the fastest growing region with Russia, Poland and Ukraine leading the growth. Improving internet penetration and growing young demographics in these countries are driving the demand for digital payment options like BNPL. The CIS region is anticipated to capture around 35% share by 2030.

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