UAE baqala report reveals USD 338million opportunity for BNPL players 

The report also discovered that if baqalas were able to offer ‘buy now, pay later’ (BNPL) services, it could account for up to USD 338million in transactions per year. 24SEVEN insights suggest only about 4% of payments are currently via in-store credit (BNPL, manual ledger etc.). However, based on preferences for BNPL in a consumer survey, this could rise to 26% of transactions or more.

Jarrar Shah, CEO and Co-Founder of 24SEVEN said, “Baqalas are a traditional part of life in the UAE and these stores are transforming their services to stay relevant for communities. The modern day baqala is not just focused on groceries, but also a range of other embedded financial services such as remittance, mobile top-ups and bill payments. However, currently around 70% of these stores don’t have the right technology to compete.”

24SEVEN works closely with small grocery stores to optimize their Point-of-Sale (POS) into a ‘Point-of-Everything’, supporting the UAE’s vision towards digital transformation of services. By providing embedded fintech services into daily operations, 24SEVEN data indicates a typical UAE baqala could generate between 8 to 12% more revenue per month.

24SEVEN’s report called ‘Inside the Baqala’, also includes proprietary research data and a public survey into preferences. It found that the top reason for shopping at a baqala is the convenience of location with 59% saying they shopped at a baqala because it was close to home or work, followed by access to specific products/items (31%), extended opening hours (27%), friendly staff (20%) and a preference to shop local (20%).

To find out more, read the full report at 24seven.ae.