The "UAE Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q3 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The BNPL payment market in United Arab Emirates is expected to grow by 15.6% on annual basis to reach US$2.84 billion in 2025. The BNPL market in the country experienced robust growth during 2021-2024, achieving a CAGR of 24.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 11.2% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 2.45 billion to approximately USD 4.82 billion.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in United Arab Emirates, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

The UAE's BNPL market is highly competitive and rapidly evolving. Local players such as Tabby, Spotii, and Tamara dominate, while new entrants and banks are entering the space. As BNPL expands into new sectors, such as healthcare and automotive, competition will continue to increase, leading to further market innovation and consolidation. The CBUAE's regulatory changes in 2023 have introduced strict oversight and licensing requirements, ensuring BNPL providers operate within a structured financial framework. Over the next few years, regulations will shape the future of BNPL, promoting consumer protection while allowing for continued growth and market expansion.

The BNPL market in the UAE is experiencing rapid growth, driven by the expansion of e-commerce, diversification into new sectors, and the entry of traditional financial institutions. These trends reshape consumer payment preferences, leading to broader adoption of BNPL services across various industries. Over the next 2-4 years, the BNPL landscape in the UAE is expected to become more competitive, with increased participation from both fintech firms and traditional banks. This evolution will likely result in more innovative and diversified BNPL offerings, further embedding flexible payment solutions into the UAE's economic fabric.

Rapid Growth in BNPL Adoption

• The UAE's BNPL market has grown substantially, driven by rising consumer demand for flexible payment options. Consumers increasingly opt for installment-based transactions as an alternative to credit cards, highlighting the growing preference for short-term, interest-free financing.
• E-commerce expansion has played a crucial role in driving BNPL adoption, with major providers such as Tabby, Spotti, Postpay, and Tamara forming partnerships with retailers across various sectors. Consumers gain greater access to flexible financing solutions as more merchants integrate BNPL options into their payment systems. The trend is further reinforced by the increasing reliance on digital payments in the UAE, making BNPL a seamless fit for online and offline purchases.
• As BNPL expands across retail and service industries, providers will likely introduce new financing models and partnerships to sustain market momentum.

Diversification of BNPL Applications

• BNPL services in the UAE are expanding beyond traditional retail, reaching sectors such as automotive and education. This shift reflects the growing demand for installment-based payments for higher-value transactions. A notable instance is Arabian Automobiles' partnership with Spotii, which introduced the region's first BNPL service for automotive sales, allowing consumers to purchase cars through flexible payment plans.
• Consumers seeking manageable and interest-free payment solutions for significant purchases drive the demand for BNPL in high-ticket transactions. BNPL providers are adapting their services to cater to this evolving demand, offering installment options for industries traditionally relying on loans or upfront payments. As financial accessibility remains a priority, BNPL providers increasingly target non-retail sectors to diversify their revenue streams.
• Over the next 2-4 years, the expansion of BNPL into new sectors is expected to accelerate, broadening adoption across various industries. Installing installment-based payments for high-value goods and services will encourage consumers to make large-scale purchases, driving overall spending. As a result, BNPL providers will likely develop customized financing models tailored to different sectors, further solidifying their role in the UAE's digital payments ecosystem.

Entry of Traditional Financial Institutions into BNPL

• Traditional financial institutions in the UAE are entering the BNPL market to capitalize on the growing demand for installment-based payments. Abu Dhabi Islamic Bank (ADIB) has partnered with Spotii to launch a virtual BNPL prepaid card, enabling customers to split purchases into flexible installments. This move signals a shift in how banks integrate BNPL offerings to complement their existing credit and financing products.
• The increasing adoption of BNPL among consumers has prompted banks to explore partnerships with established providers rather than developing standalone solutions. By collaborating with fintech companies, traditional banks can leverage existing BNPL infrastructure while expanding their product portfolios. This approach allows financial institutions to remain competitive in the evolving digital payments landscape and cater to consumer preferences for alternative credit options.
• Over the next 2-4 years, banks' involvement in BNPL is expected to enhance trust and regulatory compliance within the sector. Consumers may be more inclined to use BNPL services established banks offer, leading to broader adoption. Additionally, the entry of financial institutions could lead to more structured and regulated BNPL products, ensuring responsible lending while maintaining the flexibility consumers seek.

Current State of the BNPL Market

• The BNPL market in the UAE has expanded rapidly, fueled by growing consumer demand for flexible payment solutions and the rise of digital commerce. The increasing preference for BNPL reflects shifting financial habits, particularly among younger consumers and expatriates seeking alternative credit solutions.
• The UAE's BNPL sector is projected to continue its strong growth trajectory over the next five years. The expansion of e-commerce, partnerships with retailers, and entry of financial institutions are expected to drive wider adoption. As competition intensifies, BNPL providers will likely focus on service diversification and user-friendly payment models to maintain market share.

Key Players and New Entrants

• Tabby - One of the UAE's leading BNPL providers, recently secured US$700 million in debt financing from JPMorgan.
• Tamara - A Saudi-based provider expanding aggressively in the UAE market.
• Spotii - A BNPL provider partnered with Abu Dhabi Islamic Bank (ADIB) to integrate flexible payment options into banking services.
• Postpay and Cashew - Both players partner with retailers and financial institutions to expand their BNPL offerings.
• International entrants such as Klarna and Alif also expanded into the UAE, increasing market competition.

Scope

UAE Buy Now Pay Later Market Share Analysis by Key Players

• Tabby
• Postpay
• Spotii
• Cashew
• Tamara
• Aramex Smart
• Rise
• Payby
• Zoodpay

UAE BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

UAE Buy Now Pay Later Operational KPIs & Statistics

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

UAE BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

UAE BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

UAE BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

UAE BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

UAE BNPL Analysis by Channel

• Online Channel
• POS Channel

UAE Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

UAE Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Monthly Expense Segments

For more information about this report visit https://www.researchandmarkets.com/r/j9d3ot

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