In recent years, the Buy Now, Pay Later (BNPL) trend has gained significant popularity worldwide, including in the United Arab Emirates (UAE). This innovative payment solution allows consumers to purchase and pay for them in installments. The convenience and flexibility offered by BNPL have contributed to its rapid growth in the UAE. In this blog, we will explore the reasons behind the rising popularity of BNPL in the UAE and discuss what you need to know about this payment method.
- Flexibility and Convenience
BNPL allows consumers to split their payments into manageable installments, allowing them to make larger purchases without straining their budgets. It eliminates the need to pay the full amount upfront, making it an attractive option for those who prefer to spread out their expenses.
With BNPL, consumers can enjoy instant gratification by receiving the product or service immediately while deferring the full payment later.
- Increasing E-commerce Growth
The e-commerce industry in the UAE has witnessed remarkable growth in recent years. According to a report by Euromonitor International, online sales in the UAE are projected to reach AED 24.4 billion by 2022.BNPL aligns perfectly with the online shopping experience, as it offers consumers a seamless and convenient way to make purchases online without providing their credit card details or going through lengthy loan applications. The ease of using BNPL for online transactions has played a significant role in its popularity among UAE consumers.
- Younger Demographic Preference
The younger generation in the UAE, particularly millennials and Gen Z, form a significant portion of the population. These digital-savvy individuals are more open to embracing new payment methods and are comfortable using technology to make a purchase. According to a survey conducted by Trucial Investment Partners, 41% of UAE millennials have used BNPL services, highlighting the growing acceptance of this payment option among the younger demographic.
- Rising Competition in the BNPL Market
The rising popularity of BNPL in the UAE has led to increased competition among service providers in the market. Several local and international companies have entered the BNPL space, offering consumers a wide range of options. This competition has resulted in improved terms and conditions, lower interest rates, and attractive user rewards and incentives, making BNPL an even more appealing choice.
- The Role of Safexpay in BNPL
Safexpay, a leading payment gateway provider in the UAE, offers its own BNPL service, making it easier for merchants and consumers to embrace this payment option. Safexpay’s BNPL service provides a seamless and secure experience, allowing consumers to purchase without hassle or delay. With Safexpay BNPL, consumers can enjoy flexible repayment options, transparent terms, and a user-friendly interface, enhancing their shopping experience.
In conclusion, the rising popularity of BNPL in the UAE can be attributed to its flexibility, convenience, increasing e-commerce growth, the preference among the younger demographic, and the presence of competitive options in the market. As more consumers seek alternative payment methods, BNPL continues to gain traction. Safexpay’s BNPL service is a reliable solution for merchants and consumers, providing a secure and hassle-free experience. Whether you’re a business owner looking to offer BNPL to your customers or a consumer looking for a convenient payment option, Safexpay can help meet your needs.
