<\/div>\n
The UAE and Saudi Arabia remain the Middle Eastern leaders in the e-commerce sector, boasting the largest share of BNPL e-commerce transactions, led by two major players – Tabby and Saudi’s Tamara, which have accumulated more than $740 million and $365 million in funding, respectively.<\/span><\/p>\nCoupled with its rapidly expanding e-commerce market share, Saudi Arabia has evolved into a key market for BNPL companies.\u00a0<\/span><\/p>\n\u201cThis mimics the share of e-commerce in the region, which is largely skewed towards the Saudi market. That’s how we see our share of volumes accordingly split,\u201d added Mr Arab.<\/span><\/p>\nRetailers’ strategies<\/b><\/h3>\n
BNPLs are maintaining their grip across various retail branches, with merchants actively incorporating them in online and offline channels to appeal to cost-conscious customers as inflation bites.<\/span><\/p>\n\u201cPrices will tick up everywhere, and companies facilitating payments and offering instalments across the board will proliferate. This has been deeply instilled in consumer behaviour. Using fintech products like BNPL and smart wallets by banks is now an integral part of the culture here in Saudi Arabia. There\u2019s no changing that fact”, the marketing manager at Saudi producer of wild honey ReeQ, a third of whose revenues now come via BNPL, Mohamed Abuzaid, told Wamda.<\/span><\/p>\nTo monetise their customer base, such fintech companies are introducing new products to enhance customer-merchant engagement, which involves cashback and in-app advertising.\u00a0<\/span><\/p>\nWhile most BNPLs do not charge consumers a fee for their service, they tend to charge retailers a commission rate, ranging between two and nine per cent, depending on each industry, profit margins and accompanying risk factors.\u00a0<\/span><\/p>\nPie in the sky<\/h3>\n
Some merchants unwilling to pay commissions to BNPL providers came up with the idea to design their version of BNPL to keep customers within their ecosystem while sidestepping the involvement of a third party.\u00a0<\/span><\/p>\nAll the same, some regulatory, technical, and credit-related obstacles persist. Thus, for most middle-of-the-road retailers building their own BNPL scheme may remain an unattainable luxury.<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
While the BNPLs adoption is rising across the Mena region, retailers’ take on the payment option differ dramatically<\/p>\n","protected":false},"author":40,"featured_media":18262,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3927,1],"tags":[2791,4321],"_links":{"self":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts\/24188"}],"collection":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/comments?post=24188"}],"version-history":[{"count":7,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts\/24188\/revisions"}],"predecessor-version":[{"id":24195,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts\/24188\/revisions\/24195"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/media\/18262"}],"wp:attachment":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/media?parent=24188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/categories?post=24188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/tags?post=24188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}