Saudi Arabia Buy Now Pay Later Services Market Size

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.