Market Trends of Saudi Arabia Buy Now Pay Later Services Industry
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.
