
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 1.54 Billion |
Market Size (2030) | USD 2.48 Billion |
CAGR (2025 - 2030) | 10.00 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Buy Now Pay Later Services Market Analysis
The Saudi Arabia Buy Now Pay Later Services Market size is estimated at USD 1.54 billion in 2025, and is expected to reach USD 2.48 billion by 2030, at a CAGR of greater than 10% during the forecast period (2025-2030).
The Saudi Arabian payment landscape is undergoing a significant digital transformation, driven by the increasing adoption of digital payment solutions and changing consumer preferences. Credit cards dominate the online payment methods with a 41% share, followed by direct payments at 17% and online wallets at 16%, highlighting the growing comfort of Saudi consumers with digital payment options. The robust digital infrastructure is supported by high smartphone penetration, with the number of smartphone users reaching 33.14 million in 2022, creating a strong foundation for digital payment solutions including BNPL services.
The retail sector in Saudi Arabia is experiencing a revolutionary shift with the integration of Buy Now Pay Later services across both online and offline channels. The e-commerce sector has shown remarkable growth, with digital commerce transaction value reaching USD 21.07 billion in 2022, demonstrating the increasing consumer confidence in digital shopping experiences. Traditional retailers are rapidly adopting BNPL solutions to enhance customer experience and increase sales conversion rates, with many merchants reporting up to a 50% increase in average basket sizes and a 35% improvement in conversion rates after implementing BNPL options.
The technological landscape of Buy Now Pay Later services is evolving with advanced features such as real-time analysis, automated payment processing, and seamless integration with retailer systems. BNPL providers are leveraging sophisticated technologies for instant identity verification, Know Your Client (KYC) procedures, and anti-money laundering (AML) checks, making digital lending and payments more secure and efficient. The integration capabilities have expanded beyond traditional retail to include various sectors such as healthcare, travel, and automotive, with providers offering specialized BNPL solutions tailored to specific industry needs.
Strategic partnerships and market expansion initiatives are reshaping the competitive landscape of Saudi Arabia's Buy Now Pay Later sector. Point-of-sale (POS) integration has seen remarkable growth, with the number of POS transactions reaching 5,171 million in 2021, indicating the widespread adoption of digital payment solutions. Major players are forming alliances with established retailers, e-commerce platforms, and financial institutions to expand their merchant network and enhance service offerings. These partnerships are facilitating the introduction of innovative features such as longer repayment terms, increased spending limits, and specialized financing options for high-value purchases, contributing to the growth of embedded finance in the region.
Saudi Arabia Buy Now Pay Later Services Market Trends
Rising Digital Payment Adoption & E-commerce Growth
The rapid digitalization of payment systems and explosive growth of e-commerce in Saudi Arabia are primary drivers of the buy now, pay later market. According to market data, credit cards accounted for 41% of online payments in 2021, while digital wallets represented 16% of transactions, indicating strong consumer comfort with digital payment methods. This shift is supported by the robust growth in digital infrastructure, with smartphone users in Saudi Arabia reaching 33.14 million and internet users touching 33.18 million by 2022, creating a strong foundation for buy now, pay later adoption.
The transformation of point-of-sale (POS) transactions further demonstrates this digital shift, with the number of POS transactions in Saudi Arabia showing remarkable growth from 394 million in 2015 to 5,171 million in 2021. This is complemented by the expansion of POS terminal infrastructure, which grew from 225,372 terminals in 2015 to over 1 million terminals by 2021, providing the necessary framework for BNPL services to flourish across physical retail locations. The decreasing share of cash payments at POS from 61% in 2020 to 53% in 2021 further indicates consumer readiness to embrace alternative payment methods.
Technological Integration & Innovation
Advanced technological capabilities are driving BNPL adoption through seamless integration with existing retail systems and enhanced security features. BNPL providers are leveraging sophisticated technologies for real-time analysis, enabling instant identity verification, KYC compliance, and credit risk assessment through national databases. This technological foundation allows for automated payment processing, streamlined customer onboarding, and simplified one-click checkouts, making BNPL an attractive option for both retailers and consumers.
The integration of full BNPL lifecycle automation has revolutionized the payment ecosystem, covering everything from transaction approvals to debt collection processes. These technological innovations enable BNPL providers to offer features like automated repayment reminders, interest calculations, reconciliations, and credit line management, significantly reducing operational costs while improving service efficiency. The ability to perform real-time checks for ID verification, anti-money laundering compliance, and affordability assessment has made digital lending and payments more secure and accessible, encouraging wider adoption among cautious consumers and traditional retailers.
Growing Consumer Base & Changing Preferences
The evolving consumer demographics and changing payment preferences in Saudi Arabia are significantly driving BNPL market growth. Young consumers, particularly those under 30 years old who comprise 70% of BNPL users in Saudi Arabia, are showing strong preference for flexible payment options. This demographic shift is particularly notable among young Saudi women, who represent the majority of BNPL customers, indicating a transformation in consumer financial behavior and shopping patterns.
The shift in consumer payment preferences is evident in the increasing adoption of digital payment methods, with 55% of Saudi consumers having used BNPL options in 2021 for various purchases. This trend is reinforced by the growing preference for structured installment payment plans over traditional credit options, especially among digitally literate populations. The appeal of BNPL services to consumers without robust credit histories, combined with the convenience of soft credit checks and underwriting, has created a strong value proposition for both first-time and regular users of digital payment services.
Retail & Enterprise Partnerships
The proliferation of strategic partnerships between BNPL providers and major retailers is driving market expansion across Saudi Arabia. Leading BNPL platforms have established relationships with over 700 merchants throughout the region, creating a robust network that spans multiple retail categories. These partnerships are transforming the retail landscape by offering seamless payment integration and enhanced customer experiences, with retailers reporting significant improvements in business metrics, including increases in average basket sizes by over 50% and conversion rates by over 35%.
The enterprise adoption of BNPL services has been particularly impactful, with major retailers and brands integrating these payment solutions into both their online and offline channels. These partnerships are delivering tangible benefits, including a 25% reduction in return rates and a 25% increase in return customer rates. The success of these collaborations is further evidenced by the expansion of BNPL services across diverse sectors, from fashion and electronics to healthcare and travel, creating a comprehensive ecosystem that caters to varied consumer needs and preferences. The growth of consumer financing through these partnerships is a testament to the increasing reliance on digital credit solutions.
Segment Analysis: By Channel
Online Segment in Saudi Arabia BNPL Services Market
The online segment continues to dominate the Saudi Arabia Buy Now Pay Later (BNPL) services market, commanding approximately 67% of the total market share in 2024. This significant market position is driven by the increasing adoption of digital payment solutions and the growing preference for online shopping among Saudi consumers. The segment's growth is further supported by the high smartphone and internet penetration rates in the country, with over 33 million users actively engaging in digital transactions. BNPL providers have successfully integrated their solutions with major e-commerce platforms, offering seamless checkout experiences and automated credit approval processes. The segment particularly appeals to millennials and Gen-Z consumers who prefer conducting their shopping via mobile apps and online platforms, capitalizing on user-friendly experiences for discretionary purchases. Additionally, the online BNPL services have proven especially attractive for individuals without robust credit histories, as the service often finances users' first online purchases while limiting the risk of non-payment through soft credit checks and underwriting.

POS Segment in Saudi Arabia BNPL Services Market
The Point of Sale (POS) segment is emerging as the fastest-growing channel in the Saudi Arabia BNPL services market, with a projected growth rate of approximately 30% during 2024-2029. This accelerated growth is attributed to the increasing integration of point-of-sale financing solutions at physical retail locations across various sectors, including fashion, electronics, and home furnishings. The segment's expansion is supported by the rapid digitalization of payment infrastructure in Saudi Arabia, with the number of POS terminals showing significant growth across retail establishments. Retailers are increasingly embracing Buy Now Pay Later options at their physical stores as research indicates these point-of-sale loans lead to higher conversion rates and increased basket sizes, typically ranging from 20% to 30% improvement in conversion rates and 30% to 50% larger average transaction values. The growth is further enhanced by the seamless integration of BNPL services with existing payment systems, offering consumers the flexibility to make instant purchase decisions while maintaining financial control through structured payment plans.
Segment Analysis: By End Usage
Fashion and Personal Care Segment in Saudi Arabia BNPL Services Market
The Fashion and Personal Care segment has emerged as the dominant force in Saudi Arabia's Buy Now Pay Later (BNPL) services market, commanding approximately 35% of the total market share in 2024. This segment's leadership position is driven by the increasing adoption of BNPL services among young Saudi consumers, particularly women under 30 years old, who are actively embracing digital payment solutions for their fashion and beauty purchases. Major BNPL providers like Tabby have reported significant traction in this segment, with their integration into prominent fashion platforms and retail groups contributing to the segment's substantial market presence. The segment's growth is further supported by the rising e-commerce penetration in the beauty and personal care sector, along with retailers' strategic partnerships with BNPL providers to enhance customer experience and increase sales conversion rates.
Healthcare Segment in Saudi Arabia BNPL Services Market
The Healthcare segment has emerged as the fastest-growing segment in Saudi Arabia's BNPL services market, with a projected growth rate of approximately 31% during 2024-2029. This remarkable growth trajectory is being fueled by innovative partnerships between BNPL providers and healthcare institutions, offering patients flexible payment options for various medical services including diagnostics, blood tests, and wellness programs. The segment's rapid expansion is particularly notable as healthcare providers increasingly recognize the value of offering installment-based payment facilities to make medical services more accessible and affordable. The integration of zero-interest financing solutions in healthcare is transforming the traditional payment landscape, with providers offering zero-interest installment plans ranging from 6 to 60 months, making premium healthcare services more attainable for a broader segment of the population.
Remaining Segments in Saudi Arabia BNPL Services Market
The other significant segments in the Saudi Arabia BNPL market include Other Products, Other Electronic Appliances, and Kitchen Appliances, each playing a vital role in the market's development. The Other Products segment encompasses travel, hospitality, and various retail categories, demonstrating the versatility of consumer payment solutions across different sectors. The Other Electronic Appliances segment has gained substantial traction through partnerships with major electronics retailers and e-commerce platforms, while the Kitchen Appliances segment has benefited from the increasing adoption of online shopping for home appliances. These segments collectively reflect the broader integration of BNPL services across Saudi Arabia's retail landscape, with each category contributing to the overall market expansion through specialized offerings and targeted consumer solutions.
Saudi Arabia Buy Now Pay Later Services Industry Overview
Top Companies in Saudi Arabia BNPL Market
The Saudi Arabian BNPL market features prominent players like Tamara, Tabby, Spotti, Postpay, Telr, and Mastercard, who are actively shaping the industry landscape. These companies are driving innovation through enhanced digital experiences and seamless integration with merchant systems, particularly in e-commerce platforms. Operational agility is demonstrated through real-time credit assessment capabilities, automated payment processing, and full lifecycle automation of buy now, pay later solutions. Strategic partnerships with major retailers and brands have become a crucial differentiator, with companies expanding their merchant networks across various retail segments. Market expansion strategies include developing both online and in-store buy now, pay later platforms, while also exploring new verticals such as B2B BNPL services and specialized industry-specific financing options.
Dynamic Market with Strong Growth Potential
The Saudi Arabian BNPL market exhibits a relatively fragmented structure with a mix of local specialists and global payment giants competing for market share. Local players like Tamara and Tabby have established a strong regional presence through a deep understanding of local consumer preferences and Shariah-compliant financing models, while global players like Mastercard bring international expertise and established technological infrastructure. The market is characterized by intense competition as companies strive to differentiate themselves through exclusive partnerships, merchant benefits, and flexible installment plans.
The market is witnessing increasing consolidation through strategic partnerships and investments, particularly as traditional financial institutions and e-commerce platforms seek to enter the alternative lending space. Major retail conglomerates and e-commerce giants are exploring opportunities to develop their own buy now, pay later solutions or acquire existing players to integrate BNPL capabilities into their offerings. This trend is driving significant merger and acquisition activity, with several BNPL providers receiving substantial funding to scale their operations and expand their market presence.
Innovation and Adaptation Drive Market Success
For incumbent BNPL providers, success hinges on continuous innovation in digital experiences and risk assessment capabilities. Market leaders are focusing on developing comprehensive merchant solutions, expanding into new retail segments, and creating value-added services beyond basic BNPL offerings. Building strong merchant relationships, maintaining high customer satisfaction, and ensuring robust credit assessment processes are crucial for maintaining market position. Additionally, incumbents are investing in advanced technologies like AI and blockchain to enhance their service offerings and operational efficiency.
New contenders in the market need to focus on identifying underserved segments and developing specialized BNPL solutions for specific industries or consumer groups. Success factors include building trust through transparent pricing models, ensuring Shariah compliance, and developing strong partnerships with merchants and financial institutions. The regulatory environment is evolving, with the Saudi Central Bank implementing new policies for BNPL providers, making regulatory compliance a critical success factor. Companies must also address the growing competition from traditional payment solutions and maintain strong risk management practices to ensure sustainable growth.
Saudi Arabia Buy Now Pay Later Services Market Leaders
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Spotti
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Tabby
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Tamara
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Telr
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Postpay
- *Disclaimer: Major Players sorted in no particular order

Saudi Arabia Buy Now Pay Later Services Market News
- January 2023: ToYou, a delivery app established in Saudi Arabia, and the shopping and payment app Tabby partnered to create a new BNPL service in the country.
- June 2022: Postpay, a leading BNPL provider in the Middle East, 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
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4.2 Market Driver
- 4.2.1 Increasing Consumer Demand for Flexible Payment Options
- 4.2.2 Rise in E-commerce and Online Shopping
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4.3 Market Restraints
- 4.3.1 High Interest Rates is Restraining the Market
- 4.3.2 Availability of Alternatives
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4.4 Market Opportunities
- 4.4.1 Partnering with Retailers and E-commerce Platforms
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4.5 Industry Attractiveness - 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 into Technologial Adoption in the Market
- 4.7 Insight into Various Government Regulations in the Market
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Channel
- 5.1.1 Online
- 5.1.2 POS (Point of Sale)
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5.2 By End User
- 5.2.1 Kitchen Appliances
- 5.2.2 Electronic Appliances
- 5.2.3 Fashion and Personal Care
- 5.2.4 Healthcare
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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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
- 6.2.8 VISA
- 6.2.9 Affirm Inc.
- 6.2.10 Zippay*
- *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 short-term financing that allows customers to make purchases 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 in online shopping.
The Saudi Arabian buy now, pay later services market is segmented into channel and end-user types. By channel, the market is segmented into online and POS (point of sale). The market is segmented by end-users into kitchen appliances, consumer electronics, fashion and personal care, and healthcare. The report offers market size and forecasts for the market in terms of revenue (USD) for all the above segments.
By Channel | Online |
POS (Point of Sale) | |
By End User | Kitchen Appliances |
Electronic Appliances | |
Fashion and Personal Care | |
Healthcare |
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 1.54 billion in 2025 and grow at a CAGR of greater than 10% to reach USD 2.48 billion by 2030.
What is the current Saudi Arabia Buy Now Pay Later Services Market size?
In 2025, the Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 1.54 billion.
Who are the key players in Saudi Arabia Buy Now Pay Later Services Market?
Spotti, Tabby, Tamara, Telr and Postpay 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 2024?
In 2024, the Saudi Arabia Buy Now Pay Later Services Market size was estimated at USD 1.39 billion. The report covers the Saudi Arabia Buy Now Pay Later Services Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia Buy Now Pay Later Services Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Saudi Arabia Buy Now Pay Later Services Market Research
Mordor Intelligence provides a comprehensive analysis of the buy now pay later industry in Saudi Arabia. We leverage our extensive expertise in digital payment and consumer financing research. Our detailed report examines the evolution of BNPL services, including major buy now pay later platforms and their integration of embedded finance technologies. This analysis is available as an easy-to-download report PDF and covers emerging digital lending trends, alternative payment methods, and innovative payment solutions that are reshaping the Saudi Arabian market.
Our research offers invaluable insights for stakeholders in the retail financing sector. It examines various installment payment and deferred payment options. The report thoroughly analyzes flexible payment innovations, point of sale financing, and consumer credit developments. Additionally, it explores advanced buy now pay later solutions and digital credit services. Stakeholders gain a comprehensive understanding of alternative lending practices, retail payment solutions, and zero interest financing programs. This is supported by a detailed analysis of consumer payment solutions and POS financing trends in the region.