BNPL Saudi Arabia Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2021 |
| Market Size (2023) | USD 0.58 Billion |
| Market Size (2028) | USD 1.83 Billion |
| CAGR (2023 - 2028) | 25.76 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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BNPL Saudi Arabia Market Analysis
The Saudi Arabia Buy Now Pay Later Services Market size in terms of transaction value is expected to grow from USD 0.58 billion in 2023 to USD 1.83 billion by 2028, at a CAGR of 25.76% during the forecast period (2023-2028).
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.
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 to 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 the 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.
BNPL Saudi Arabia Market Trends
This section covers the major market trends shaping the Saudi Arabia Buy Now Pay Later Services Market according to our research experts:
Raising E-Commerce is Fueling the BNPL Services Market in Saudi Arabia
In Saudi Arabia, buy now, pay later (BNPL) arrangements are growing more common, a trend spurred by the country's e-commerce growth and embraced by the country's young, tech-savvy populace ready to adopt what they believe is a more convenient and transparent way to finance purchases. In 2021, digital spending increased across the Saudi economy for business-to-consumer (B2C) goods and services. Nearly half (48%) of Saudi consumers aim to increase their e-commerce spending in the coming year, with 40% mentioning the ability to purchase across borders as a major motivation for doing so. According to Checkout.com's research, 55 percent of Saudi Arabian consumers used BNPL payment methods such as Tamara in 2021, demonstrating a shift in payment preferences. Another 27% stated they have not utilized BNPL yet but want to do so in 2022.
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. BNPL is seen by Saudi Arabia's younger generations as an easy way to buy luxury products without depleting their money.
BNPL Saudi Arabia 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 the approval from the Central Bank of Saudi Arabia as it had made approval mandatory for providing BNPL services. A high number of retailers is 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 Saudi Arabia buy now pay later market report are Tamara, Tabby, Spotti, Postpay, Cashew Payments, etc
BNPL Saudi Arabia Market Leaders
Tamara
Tabby
Spotti
Postpay
Telr
*Disclaimer: Major Players sorted in no particular order
BNPL Saudi Arabia Market News
- In October 2021, Tabby, a buy now, pay later (BNPL) service provider, established a relationship with Styli, Saudi Arabia's online fashion and cosmetics platform. The agreement seeks to give Styli members a better shopping experience by dividing their purchases into four interest-free payments and earning cashback. Styli have over 2 million monthly active users and over 600,000 active clients.
- In April 2021, Tamara, a buy now pay later (BNPL) firm based in Saudi Arabia, raised USD 110 million in debt and equity for its Series A investment headed by Checkout.com. It is the largest Series A round ever raised by a Middle Eastern business and the largest investment ever made by a Saudi startup. Tamara intends to use the funds to expand to all GCC markets.
BNPL Saudi Arabia 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
4.3 Market Restraints
4.4 Porters 5 Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insight on Technologial Adoption in the Market
4.6 Insight on Various Government Regulations in the Market
4.7 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 Products
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 OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
BNPL Saudi Arabia Industry Segmentation
Buy Now, Pay Later (BNPL) is a sort of short-term financing that allows customers to buy 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 Arabia Buy Now Pay Later Services Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. Saudi Arabia Buy Now, Pay Later Services market in Saudi Arabia can be segmented by Channel (Online and POS), By End User Type (Kitchen Appliances, Other Consumer Electronics, Fashion & Personal Care, Healthcare, and Other Products).
| By Channel | |
| Online | |
| POS |
| By End Usage | |
| Kitchen Appliances | |
| Other Electronic Appliances | |
| Fashion and Personal Care | |
| Health Care | |
| Other Products |
BNPL Saudi Arabia 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 0.58 billion in 2023 and grow at a CAGR of 25.76% to reach USD 1.83 billion by 2028.
What is the current Saudi Arabia Buy Now Pay Later Services Market size?
In 2023, the Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 0.58 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.
Buy Now Pay Later Saudi Arabia Industry Report
Statistics for the 2023 Buy Now Pay Later Saudi Arabia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Buy Now Pay Later Saudi Arabia analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
