Mergers and acquisitions to increase in the Middle East BNPL sector

buy now pay later market research


Changing consumer behavior and the continued rise of e-commerce are fueling flexible payment options such as buy now, pay later (BNPL) solutions, especially in Europe. Transition to digital payments had been long underway, even before the global pandemic outbreak. However, it has drastically accelerated customer preferences for using flexible payment solutions such as BNPL. According to the Financial Conduct Authority in the UK, five million people have started using buy now and pay later platforms since the global pandemic. As a result, in the United Kingdom, the use of buy now, pay later platforms had almost quadrupled in 2020. Consequently, PayNXT360 expects that the growth in the flexible payment industry is likely to attract several global, big BNPL brands to the European market, leading to several mergers and acquisitions in the following quarters.

Mergers and acquisitions to increase in the Middle East BNPL sector

The e-commerce market is one of the fastest-growing industries in the Middle East; wherein online spending has increased at the rate of nearly 25% annually. Therefore, the Middle East region has become a lucrative investment opportunity for global buy now, pay later platforms, looking to expand their services globally.

In addition to its expansion in the European market, Zip also acquired Dubai-based buy now, pay later provider Spotti. Similar to Twisto, Zip owned 20% in Spotti through its initial investment in December 2020. According to the company, building on its initial investment, the global BNPL player will also acquire the remaining 80% in the Dubai-based flexible payment firm.

Study By PayNXT360


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