Buy Now, Pay Later (BNPL) in the Middle East and North Africa has evolved from a niche payment option into a mainstream financial tool, fundamentally changing how consumers shop and how merchants drive growth. A new report by Amazon Payment Services, developed with regional fintech giants Tabby, Tamara, and Valu, highlights the key trends shaping the industry’s future, including expansion into new sectors and the rise of integrated digital ecosystems.
From E-Commerce To Education And Insurance
While fashion and electronics have traditionally dominated the BNPL landscape, the service is now penetrating new high-value categories. The report notes significant adoption in education, travel, and insurance as consumers seek more flexible ways to manage major expenses.
In the education sector, edtech company Classera introduced installment plans for school fees, leading to a 42% increase in adoption and a 28% reduction in late payments. Similarly, in travel, online agency Cleartrip reports that BNPL now accounts for 10% of its UAE bookings, making premium holidays more accessible.
The insurance industry is also leveraging BNPL to address rising premiums. GIG Gulf recorded a 42% growth in installment payment adoption between 2021 and 2024, observing a notable uptick in customers upgrading to comprehensive plans, especially after events like the Dubai floods.
The Rise Of The Financial Super-App
A profound transformation is underway as BNPL platforms evolve from standalone payment tools into comprehensive financial ecosystems. The report points to the growth of the “super-app” model, which integrates shopping, banking, and lifestyle services, embedding flexible payments into daily life.
Tamara is actively pursuing this model, aiming to become a financial lifestyle app that combines credit tracking, brand discovery, and services for travel and healthcare. In Egypt, Valu’s CEO Walid Hassouna sees a convergence with regulated consumer finance, envisioning longer tenures and interest-bearing models that are less reliant on merchant subsidies.
Another key opportunity lies in linking BNPL with loyalty programs. By integrating rewards directly at checkout, customers can redeem points from banks or brands alongside installment payments. Valu has noted rising demand for such features, which help drive retention, particularly among unbanked and underbanked users.
Bridging The Online And Offline Experience
As the market matures, the focus is shifting toward creating seamless omnichannel customer journeys. In the UAE and Saudi Arabia, where mall culture remains strong, in-store point-of-sale (POS) has become the fastest-growing channel for BNPL.
Recognizing this trend, Tamara is aggressively expanding its omnichannel presence to allow customers to move effortlessly between online, in-store, and app-based shopping. Tabby has also seen significant in-store growth, prompting the 2022 launch of the Tabby Card, which lets users split both online and in-store purchases into installments.
Sustainability Through Regulation And Responsibility
The report concludes by emphasizing that the long-term sustainability of the BNPL model will depend on financial discipline and robust regulatory frameworks.
Valu highlighted Egypt’s proactive approach in establishing early oversight and consumer protection standards, setting a regional benchmark for responsible lending. Tabby echoed this sentiment, stating that sustainable growth requires a balanced focus on financial inclusion and consumer protection.
About Amazon Payment Services
Amazon Payment Services is a regional leader in digital payments operating across the Middle East and North Africa (MENA) region. The company provides businesses with simple, affordable, and trusted online payment solutions. It designs its services and products to enable businesses to grow by offering a better and safer online shopping experience for their customers.
Source: Fintech News AE
