A report by 24SEVEN on UAE baqalas stated that if these baqalas can offer buy now pay later (BNPL) services, they could account for $338 million in transactions in a year. The report stated that nearly 60 per cent of UAE residents use these community commerce hubs weekly.
Only four per cent of payments are made through in-store credit (BNPL, manual ledger, etc.). However, based on preferences for BNPL in a consumer survey, this could rise to 26 per cent of transactions or more. By embedding fintech services into daily operations, 24SEVEN data indicates that a typical UAE baqala could generate between 8 and 12 per cent more monthly revenue.
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, around 70 per cent of these stores currently don’t have the right technology to compete.”
24SEVEN’s report, ‘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 per cent saying they shopped at a baqala because it was close to home or work. This is followed by access to specific products/items (31 per cent ), extended opening hours (27 per cent), friendly staff (20 per cent), and a preference to shop local (20 per cent).
24SEVEN works closely with small grocery stores to optimize their Point-of-Sale (POS) into a ‘Point-of-Everything’, supporting the UAE’s vision of digital service transformation.
