UAE POS Lending Market Revenue, Market Report, Market Top Players, Market Trends and Market Future Outlook to 2029

POS Lending Adoption Is Growing As 76% Of UAE Transactions Are Now Contactless

The UAE point of sale (POS) lending market is rapidly transforming, driven by evolving consumer preferences and rising digital payment innovations. In 2024, POS lending in UAE were approximately around 25% of the total consumer financing in the country. The BNPL (Buy Now, Pay Later) services are accelerating the market, with over 30,000 merchants in 2024 across retail, healthcare, and travel sectors integrating BNPL solutions. They provide flexible and interest free instalment options which increases the customer loyalty and boost sales. Nearly 60% of POS lending were conducted online, reflecting consumer's shift towards digital platforms. Moreover, government implementing licencing policies for POS lending is also making the market more structural and attracting international players.

UAE POS Lending Market Factors Affecting Growth
• The shift towards digital transactions is boosting adoption of POS lending, with digital payments accounting for 76% of total in-store payments in 2024. According to Visa, over 82% of consumers prefer digital and cashless payments as of 2024. This shift is increasing demand for BNPL and instant POS credit financing options.

• The expansion of e-commerce sector at 27% year-on-year is encouraging retailers to integrate POS lending solutions for increasing sales and reducing cart abandonments. Retailers have witness 30-40% increase in average order value when consumers opt for instalment-based payments. Further, the growing demand for omnichannel financing where consumer can access both in-store and online is also fuelling innovation in POS lending.

• The SME sector accounts for over 10% of the UAE's GDP, yet more than 50% of SMEs struggle to get formal credit. Many banks are integrating POS financing solutions allowing business to access small-term credit based on real-time POS transaction data. This has enabled faster loan approvals and more personalised lending offerings to support SMEs.

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UAE POS Lending Market Positioning
The UAE point-of-sales (POS) lending market is moderately concentrated and is dominated by few major players including Tabby, RAKBANK, and Ziina. Tabby is market leader in BNPL lending segment and serve over 10 million users and 30,000 merchants. In 2024, it secured $700 million in debt financing from JPMorgan. RAKBANK has partnered with Magnati in 2024 to launch merchant financing platform. This will offer SMEs access to real-time credit linked to their POS transactions. Ziina is a leading fintech player and UAE based start-up that has grown its user base to 50,000 in 2024. The company has raised $22 million in funding to scale its SME lending capabilities. In upcoming years, market will face entrance of new fintech firms with the expansion of digital platforms and evolving consumer preferences.

Get an In-Depth Analysis of UAE POS Lending Market [2023-2029] @ https://www.tracedataresearch.com/industry-report/uae-pos-lending-market

Recent News
February 2025: Ahlibank introduced a new POS financing program tailored for Small and Medium-sized Enterprises (SMEs) utilizing the bank's POS machines. The initiative offers short to medium-term loans, aiming to support SME growth and operational efficiency.

UAE POS Lending Market Future Outlook
The UAE POS lending market is expected to evolve rapidly through 2029, with increasing demand for instant, embedded financing solutions. By 2029, digital transactions will account for over 85% of the total in-store payments. The mobile POS payments sector is expected to process more than $72.84 billion in transactions by 2029, reflecting shift towards seamless credit accessibility across sectors like retail, healthcare, and travel. Regulatory shifts like licence requirements will bring stability and encourage bank and fintech firms' partnerships to innovate lending system. POS lending will become personalised and data driven with AI-credit risk assessment reducing the loan approval time to under 30 seconds. By 2029, UAE will become most sophisticated POS lending ecosystem in the world with local fintech players enhancing omnichannel financing options and global players continue to enter the market.

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Consultant at TraceData Research In their latest publication "UAE POS Lending Market Outlook to 2029: By Market Structure (Private Finance Companies, Traditional Banks, BNPL Companies), By Loan Size (AED 10,000), and By End-User Industry (Retail, Hospitality, Healthcare)" believe that businesses must prioritize multi-currency POS financing and subscription-based lending for long term dominance in UAE POS lending market.

FAQs'
1. What is the potential for the UAE POS Lending Market?
The UAE POS lending market is poised for substantial growth, reaching a valuation of AED 4 billion in 2023. This growth is driven by factors such as the increasing demand for flexible payment options, the expansion of the e-commerce sector, and the shift towards digital payment systems. The market's potential is further bolstered by the UAE's digital transformation initiatives, which facilitate easier access to a wide range of POS lending solutions.

2. Who are the Key Players in the UAE POS Lending Market?
The UAE POS Lending Market features several key players, including Tabby, Postpay, and Tamara. These companies dominate the market due to their innovative financial products, strong merchant partnerships, and consumer-centric services. Other notable players include Spotii and Zip.

3. What are the Growth Drivers for the UAE POS Lending Market?
The primary growth drivers include economic recovery, the rise of digital payments, and the growing e-commerce sector. The UAE's strategic focus on digital transformation and the adoption of cashless payment solutions further contribute to the growing demand for POS lending services. Additionally, the increasing preference for flexible payment options among younger consumers is driving market growth.

4. What are the Challenges in the UAE POS Lending Market?
The UAE POS Lending Market faces several challenges, including regulatory hurdles related to credit lending and consumer protection. Consumer trust and awareness issues, particularly regarding data security and hidden fees, also pose challenges to market growth. Furthermore, market saturation due to the increasing number of fintech firms entering the space intensifies competition and pressures profit margins.

Related Report by Trace Data: -
KSA POS Lending Market - https://www.tracedataresearch.com/industry-report/ksa-pos-lending-market-outlook

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