Doha, Qatar: The test phase of the recently launched Buy Now Pay Later (BNPL) service approved by the Qatar Central Bank (QCB) is receiving overwhelming response from the public, which is an indication of the massive benefits the initiative offers, industry experts have said.
BNPL is a solution that enables the instant purchase of goods and services while allowing shoppers to pay in four instalments over a period of three months in Qatar, empowering individuals to manage their finances more effectively and responsibly.
With zero interest or fees, the Sharia-compliant financial model is emerging as one of the foremost payment mechanisms in the world, attracting merchants and customers across the globe.
Co-Founder PayLater, Mohammed Abdulaziz Al Delaimi (left) and Co-Founder and CEO of Spendwisor, Safarudheen Farook
QCB had in April approved five companies, namely: Spendwisor Inc., Qaiver FinTech LLC, HSAB for Payment Solutions, Mihuru LLC, and PayLater Website Services, as the first cohort of the BNPL initiative.
The five companies were awarded entry into an exclusive sandbox programme, marking the beginning of a new era for consumers in Qatar to take advantage of unprecedented financial flexibility.
“It is important to note that entry into the regulatory sandbox does not constitute a full-scale licensing approval; however, the applicant is considered an Authorized FinTech Sandbox Participant for regulatory activities by the fintech entity,” QCB noted at the time.
The test phase of the initiative was launched on July 17, and it is intended to last at least three months.
Speaking to The Peninsula, Safarudheen Farook, the Co-Founder and CEO of Spendwisor, noted that his company has received a massive response since the launch of the test phase, with approval from QCB.
“The response has been overwhelming, indicating the market’s readiness to embark on this much-awaited journey. We keep receiving applications from people willing to be a part of the test phase, and we’ve overbooked our slot at the moment despite launching the testing phase in just a few days. The initiative will doubtlessly boost the market and particularly further enhance e-commerce in Qatar. This is a very good development for the country,” he said.
Spendwisor has enabled BNPL for the first time at Lulu hypermarkets and the Peoples Telecom e-commerce website. This allows selected customers (invite only) of the outlets to enjoy the deferred payment service easily during the test phase in a controlled environment under the supervision of QCB.
According to Mohammed Abdulaziz Al Delaimi, Co-founder of PayLater, Qatar is experiencing a remarkable surge in fintech innovation, and BNPL is poised to revolutionise the financial landscape.
“At PayLater, we’ve collaborated closely with national regulatory authorities to craft a BNPL solution tailored to Qatar’s unique market needs. We are excited to announce that we have entered the sandbox testing phase, which allows us to test our solution in a controlled environment with a select group of merchants and consumers.
“During this phase, we can gather invaluable feedback, make dynamic adjustments, and ensure our service meets the highest standards of reliability and user satisfaction. We’re thrilled to soon bring this groundbreaking payment option to Qatar, enhancing financial flexibility for all,” he said.
According to International Market Analysis Research and Consulting Group (IMARC Group), a leading advisor on management strategy and market research worldwide, the BNPL market size in the GCC is projected to exhibit a growth rate (CAGR) of 23.6% during 2024–2032. The growing online shopping activities among the masses, the rising number of individuals who prioritise budgetary control and convenience, and the increasing incorporation of effective risk assessment models to determine the creditworthiness of a customer represent some of the key factors driving the market, the research group noted.
The rising adoption of BNPL to avoid credit card debt is strengthening market growth in the GCC region. Apart from this, the growing online shopping activities among the masses, as it is convenient and allows them to purchase things from the comfort of their home, is offering a positive market outlook. Additionally, the rising focus of BNPL facility providers on building and maintaining consumer trust is offering lucrative growth opportunities to investors in the GCC region, it said. The global BNPL market was valued at $30.38bn in 2023. The market is projected to grow from $37.19bn in 2024 to $167.58bn by 2032, exhibiting a CAGR of 20.7% during the forecast period, according to Fortune Business Insights.
