Saudi Arabia Buy Now Pay Later Services Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.73 Billion |
| Market Size (2029) | USD 2.30 Billion |
| CAGR (2024 - 2029) | 25.76 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Saudi Arabia Buy Now Pay Later Services Market Analysis
The Saudi Arabia Buy Now Pay Later Services Market size in terms of transaction value is expected to grow from USD 0.73 billion in 2024 to USD 2.30 billion by 2029, at a CAGR of 25.76% during the forecast period (2024-2029).
Buy Now Pay Later (BNPL) services are increasingly becoming popular in Saudi Arabia and are eclipsing credit cards more conveniently and transparently to fund transactions. The acceleration of E-commerce after the pandemic has aided the BNPL’s popularity as the pandemic forced consumers to shop from behind their screens. The digital payment market has changed dramatically in recent years, and the expansion of e-commerce has further fueled BNPL. The Buy Now Pay Later service is becoming quite popular in Saudi Arabia due to its youthful population embracing new and innovative ideas around personal finance.
Saudi Arabia has a longstanding aversion to using credit cards, due to which BNPL's business strategy is being able to tap into a growing market for delayed payments. Because BNPLs are merchant-funded, they have a significantly smaller appetite for lending to risky consumers who can't pay. The Saudi Arabian central bank has made it essential for all buy now pay later (BNPL) enterprises to obtain a permit, owing to the growing popularity of BNPL products in the country. Failure to obtain a permit from Saudi Arabia's central bank will result in legal action. The central bank's announcement comes as industry experts increasingly call for regulation of the deferred payment sector.
The Buy Now, Pay Later (BNPL) services market was one of the major beneficiaries of the COVID-19 pandemic in Saudi Arabia. It grew in popularity dramatically during the epidemic, as the idea of deferred payment became more appealing in light of the financial uncertainties caused by the decrease in unemployment.
Saudi Arabia Buy Now Pay Later Services Market Trends
Raising E-Commerce is Fueling the BNPL Services Market in Saudi Arabia
Buy now pay later (BNPL) arrangements are becoming increasingly popular in KSa with the booming e-commerce sector. Increasing demand for a more convenient and transparent way to finance purchases among the tech-savvy population is a major factor contributing towards increasing demand for BNPL Services. By offering a seamless and secure payment experience, BNPL programs remove barriers to online shopping, increase conversion rates, and drive customer loyalty. With this growing demand for BNPL services, payment processing companies are making strategic moves to leverage a large consumer base. For instance, in January 2022, Mastercard announced to work with new, local players, including Abu Dhabi Commercial Bank (ADCB), Network International, National Bank of Ras Al Khaimah (RAKBANK) in the UAE, and Saudi National Bank (SNB) in Saudi Arabia on the BNPL program.
BNPL Culture is on Rise Among Youths of Saudi Arabia
In the aftermath of the outbreak, Saudi Arabia has seen a significant surge in online short-term credit options such as buy now, pay later services. BNPL's early users are primarily Millennials and Generation Z. However, as with all new trends, a trickle-down effect will extend adoption throughout generations. According to the current data, BNPL platforms are primarily targeting a tech-savvy young audience. BNPL's quick growth illustrates that Millennials and Gen Z, who account for 75% of BNPL users, are increasingly rejecting traditional services in favor of something that better suits their financial needs. Saudi Arabia's younger generations see BNPL as an easy way to buy luxury products without depleting their money.
Saudi Arabia Buy Now Pay Later Services Industry Overview
The Buy Now Pay Later services market is relatively new and the market is relatively fragmented. However, a large number of players are entering the market with approval from the Central Bank of Saudi Arabia, as it had made approval mandatory for providing BNPL services. A high number of retailers are focusing on accepting these point-of-sale and online installment loans as a payment method, thereby creating growth opportunities for the BNPL solution providers in the Kingdom. The growing e-commerce industry is further expected to drive market growth over the forecast period. The major players covered in the Saudi Arabia buy now pay later market report are Tamara, Tabby, Spotti, Postpay, Cashew Payments, etc.
Saudi Arabia Buy Now Pay Later Services Market Leaders
Tamara
Tabby
Spotti
Postpay
Telr
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Buy Now Pay Later Services Market News
- January 2023: The super delivery app established in Saudi Arabia, ToYou, and the shopping and payment app Tabby have partnered to create a new buy-now-pay-later (BNPL) service in the nation.
- June 2022: Postpay, a leading Middle East Buy Now Pay Later provider, partnered with Tap Payments to offer more innovative and popularly used payment methods to businesses.
Saudi Arabia Buy Now Pay Later Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Driver
4.2.1 Increasing Consumer Demand for Flexible Payment Options
4.2.2 Rise in E-commerce and Online Shopping
4.3 Market Restraints
4.3.1 High Interest Rates is Restraining the Market
4.4 Market Opportunities
4.4.1 Partnering with Retailers and E-commerce Platforms
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insight on Technologial Adoption in the Market
4.7 Insight on Various Government Regulations in the Market
4.8 Impact of COVID-19 on market
5. MARKET SEGMENTATION
5.1 By Channel
5.1.1 Online
5.1.2 POS
5.2 By End Usage
5.2.1 Kitchen Appliances
5.2.2 Other Electronic Appliances
5.2.3 Fashion and Personal Care
5.2.4 Health Care
5.2.5 Other End Usages
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Tamara
6.2.2 Tabby
6.2.3 Spotti
6.2.4 Postpay
6.2.5 Telr
6.2.6 Mastercard
6.2.7 Cashew Payments*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Saudi Arabia Buy Now Pay Later Services Industry Segmentation
Buy Now, Pay Later (BNPL) is a sort of short-term financing that allows customers to make purchases now and pay for them later, generally without incurring interest. BNPL arrangements, sometimes known as "point of sale installment loans," are becoming a more popular payment alternative, especially when shopping online.
This report aims to provide a detailed analysis of the Saudi Arabian Buy Now, Pay Later Services Market. It focuses on market dynamics, emerging trends in the segments, the future of markets, and insights into various drivers and restraints. Also, it analyzes the key players and the competitive landscape in the market. Saudi Arabia's Buy Now Pay Later Services market can be segmented by channel (online and POS) and end-user type (kitchen appliances, other consumer electronics, fashion and personal care, healthcare, and other end-user types).
The report offers market size and forecasts for the Buy Now Pay Later Saudi Arabia market in terms of revenue (USD) for all the above segments.
| By Channel | |
| Online | |
| POS |
| By End Usage | |
| Kitchen Appliances | |
| Other Electronic Appliances | |
| Fashion and Personal Care | |
| Health Care | |
| Other End Usages |
Saudi Arabia Buy Now Pay Later Services Market Research Faqs
How big is the Saudi Arabia Buy Now Pay Later Services Market?
The Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 0.73 billion in 2024 and grow at a CAGR of 25.76% to reach USD 2.30 billion by 2029.
What is the current Saudi Arabia Buy Now Pay Later Services Market size?
In 2024, the Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 0.73 billion.
Who are the key players in Saudi Arabia Buy Now Pay Later Services Market?
Tamara, Tabby, Spotti, Postpay and Telr are the major companies operating in the Saudi Arabia Buy Now Pay Later Services Market.
What years does this Saudi Arabia Buy Now Pay Later Services Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Buy Now Pay Later Services Market size was estimated at USD 0.54 billion. The report covers the Saudi Arabia Buy Now Pay Later Services Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Buy Now Pay Later Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Buy Now Pay Later Services Industry Report
Statistics for the 2024 Buy Now Pay Later Services KSA market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Buy Now Pay Later Services KSA analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
