Saudi Arabia Buy Now Pay Later Services Market Size (2024 - 2029)

The market size of Buy Now Pay Later (BNPL) services in Saudi Arabia is expected to experience significant growth in the coming years. The increasing popularity of these services, particularly among the youthful population, is due to the convenience and transparency they offer over traditional credit cards. The surge in e-commerce activities during the pandemic has also contributed to the expansion of the BNPL market. However, due to the increasing popularity of BNPL, the Saudi Arabian central bank has mandated that all BNPL businesses must obtain a permit, with failure to do so resulting in legal action. Despite this, the BNPL market has benefited greatly from the financial uncertainties caused by the pandemic, as the concept of deferred payments has become more appealing.

Market Size of Saudi Arabia Buy Now Pay Later Services Industry

Saudi Arabia Buy Now Pay Later Services Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.40 Billion
Market Size (2029) USD 2.80 Billion
CAGR (2024 - 2029) > 10.00 %
Market Concentration Low

Major Players

Saudi Arabia Buy Now Pay Later Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Buy Now Pay Later Services Market Analysis

The Saudi Arabia Buy Now Pay Later Services Market size is estimated at USD 1.40 billion in 2024, and is expected to reach USD 2.80 billion by 2029, growing at a CAGR of greater than 10% during the forecast period (2024-2029).

In Saudi Arabia, the adoption of buy-now-pay-later services is witnessing an increase due to the widespread growth of e-commerce platforms. With the buy-now-pay-later payment service, consumers can shop online or in-store by selecting the BNPL service and receiving the products without making an upfront payment. The buy now pay later service provides customers with convenient and flexible purchases and helps in managing expenses.

The emergence of digitalization in retail and e-commerce platforms in Saudi Arabia changed the shopping behavior of customers, which supported the growth of the market. The easy access to buy now pay later services using smartphones and online platforms improved the customer experience, leading to the growth of buy now pay later services in the country.

Many new players are entering the buy now pay later services market in Saudi Arabia and introducing many innovative products. To meet the increasing demand for buy now pay later services firms in Saudi Arabia, market players are raising funds substantially, focussing on large gross merchandise value and volume in the market.

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 Size Summary

The Buy Now Pay Later (BNPL) services market in Saudi Arabia is experiencing significant growth, driven by the increasing popularity of these services among the country's youthful population. The acceleration of e-commerce, further propelled by the pandemic, has played a crucial role in boosting the appeal of BNPL services. These services are seen as a more convenient and transparent way to fund transactions, particularly in a country with a longstanding aversion to credit cards. The central bank's mandate for all BNPL enterprises to obtain a permit highlights the growing market for deferred payments in the country. The BNPL services market in Saudi Arabia, which benefitted considerably from the COVID-19 pandemic, is being fueled by the booming e-commerce sector. The demand for a more convenient and transparent way to finance purchases among the tech-savvy population is driving the growth of BNPL services. These services are seen as a way to remove barriers to online shopping, increase conversion rates, and drive customer loyalty. The market is relatively fragmented, with a large number of players entering the market. The growing e-commerce industry is expected to further drive market growth over the forecast period.

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Saudi Arabia Buy Now Pay Later Services Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Driver

      1. 1.2.1 Increasing Consumer Demand for Flexible Payment Options

      2. 1.2.2 Rise in E-commerce and Online Shopping

    3. 1.3 Market Restraints

      1. 1.3.1 High Interest Rates is Restraining the Market

      2. 1.3.2 Availability of Alternatives

    4. 1.4 Market Opportunities

      1. 1.4.1 Partnering with Retailers and E-commerce Platforms

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insight into Technologial Adoption in the Market

    7. 1.7 Insight into Various Government Regulations in the Market

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Channel

      1. 2.1.1 Online

      2. 2.1.2 POS (Point of Sale)

    2. 2.2 By End User

      1. 2.2.1 Kitchen Appliances

      2. 2.2.2 Electronic Appliances

      3. 2.2.3 Fashion and Personal Care

      4. 2.2.4 Healthcare

Saudi Arabia Buy Now Pay Later Services Market Size FAQs

The Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 1.40 billion in 2024 and grow at a CAGR of greater than 10% to reach USD 2.80 billion by 2029.

In 2024, the Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 1.40 billion.

Buy Now Pay Later Services KSA Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)