Saudi Arabia Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2024 Update

According to the publisher, BNPL payments are expected to grow by 16.2% on an annual basis to reach US$ 1.31 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.8% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$ 1.12 billion in 2023 to reach US$ 2.18 billion by 2029.

The rising adoption of flexible payment solutions is aiding the growth of the buy now pay later industry in the Kingdom of Saudi Arabia. The publisher expects the trend to further continue over the medium term. To meet the rising demand for buy now pay later products, firms are also raising funding rounds, targeting higher gross merchandise value and volume in the market.

New players, including super apps, are also entering the fast-growing sector. This is driving innovation and a competitive landscape in the Saudi Arabian buy now pay later industry. Amid the rising adoption, the need to protect consumers from debt traps has also resulted in new regulatory proceedings in the sector. The Central Bank, for instance, announced guidelines in Q4 2023.

Firms are raising funding rounds to further scale their buy now pay later product offering in the Kingdom

The Saudi Arabian BNPL market is experiencing a strong growth period despite the challenging global macroeconomy. The fintech sector is poised to grow further over the medium term, with the current penetration standing around 30%, reflecting the growth potential compared to other markets like Europe and the United States, where the penetration ranges between 50% to 70%. The domestic market offers lucrative growth opportunities amid the thriving e-commerce industry and firms like Tamara are looking to tap into the growth potential of the BNPL market.

• Tamara, in December 2023, announced that the firm had raised US$340 million as part of its Series C funding round, at a valuation of more than US$1 billion. The capital round was led by investors like SNB Capital and Sanabil Investments. Pinnacle Capital, Impulse, and Shorooq Partners also participated in the Series C round. The firm, in November 2023, also raised US$250 million in debt financing. Tamara has been growing at a rapid rate in the region. With a presence in the Kingdom of Saudi Arabia, Kuwait, and the Emirates, it has more than 10 million registered users and over 30,000 merchant partners.

From the short to medium-term perspective, the publisher expects more BNPL providers to raise funding rounds in the Kingdom. This will support innovation and a competitive landscape over the medium term.

New firms are entering the buy now pay later sector with their innovative product offerings

Amid the fast-growing sector, the competitive landscape is also poised to grow at a significant pace in the Saudi Arabian BNPL market. Tamara and UAE-based Tabby are among the leading BNPL providers in the sector. These firms, however, are also facing competition from new entrants in the industry.

• ToYou, the Saudi Arabia-based supper app, launched its own BNPL product in the market in 2023. With the launch of the flexible payment solution, the super app is seeking to innovate with customer’s shopping experience, targeting higher growth in the region.

From the short to medium-term perspective, the publisher expects more regional and global firms to enter the Saudi Arabian BNPL market. This will support innovation and market growth over the next three to four years.

Saudi Arabia introduces new rules to regulate the unregulated BNPL industry in the Kingdom

The Saudi Central Bank, in December 2023, announced new regulations for the fast-growing BNPL industry. The rules announced by the Central Bank include provisions regarding licensing requirements and other regulatory measures such as information security standards, internal policies, and measures to combat financial crimes.

Furthermore, requirements have been announced to better protect consumers. This includes defining limits for credit and activities. The new regulations announced by the Central Bank are expected to support and contribute towards the sustainable growth of the market over the medium term.

The Saudi Central Bank is following the path led by many global authorities, including the Financial Conduct Authority and the Emirates Central Bank. In the United Arab Emirates, too, the Central Bank issued guidelines for BNPL providers, requiring them to get licensed to offer short-term credit to consumers.

The BNPL payment industry in Saudi Arabia has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Saudi Arabia through 55 tables and 71 charts. Below is a summary of key market segments:

Saudi Arabia BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Saudi Arabia Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Saudi Arabia BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

Saudi Arabia BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Saudi Arabia BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

Saudi Arabia BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Saudi Arabia Buy Now Pay Later Market Share Analysis by Key Players

Saudi Arabia BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Saudi Arabia Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

Reasons to buy

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in Saudi Arabia.