Report Description

According to PayNXT360, BNPL payment market in Saudi Arabia is expected to grow by 13.5% on annual basis to reach US$1,489.1 million in 2025.

The BNPL market in the country experienced robust growth during 2021-2024, achieving a CAGR of 23.0%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 9.7% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 1,311.8 million to approximately USD 2,365.9 million.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Saudi Arabia, 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.

PayNXT360’s 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.

Key Insights

The BNPL market in Saudi Arabia is set to expand significantly, driven by rapid digitalization, changing consumer preferences, and increasing competition among providers. The growing comfort with digital transactions, particularly among younger demographics, has made BNPL a preferred alternative to traditional credit options. As a result, retailers and financial service providers are integrating BNPL solutions to cater to this demand, fostering greater adoption and reshaping payment behaviors in the country.

Over the next few years, the competitive landscape will continue evolving, with local and international players enhancing their offerings to gain market share. While innovation and expansion will provide consumers with more flexible payment solutions, regulatory oversight will be crucial in ensuring responsible lending practices. As BNPL services become more mainstream, a balanced approach between market growth and financial stability will be key to the sector’s long-term sustainability in Saudi Arabia.

Rapid Adoption of BNPL Services
• Saudi Arabia is witnessing a significant increase in the adoption of BNPL services. This growth is evident as consumers increasingly prefer flexible payment options over traditional credit methods. Local BNPL providers such as Tamara and Tabby have gained substantial traction by partnering with numerous retailers across various sectors, including fashion, electronics, and home goods. These partnerships have made BNPL options more accessible to a broad consumer base.
• This growth is likely to be fueled by ongoing digital transformation initiatives and consumers’ increasing preference for cashless transactions.

Demographic Shifts Favoring BNPL Usage
• Younger demographics, particularly Millennials and Generation Z, are increasingly utilizing BNPL services in Saudi Arabia. These tech-savvy consumers prefer alternative payment methods that offer flexibility and convenience over traditional credit options.
• Younger consumers’ preference for BNPL is driven by their comfort with digital platforms and desire for financial products that align with their spending habits. Managing expenses without incurring interest charges makes BNPL an attractive option for this demographic. Additionally, the widespread use of smartphones and the internet facilitates easy access to BNPL services.
• As the purchasing power of younger consumers increases, BNPL usage is expected to rise correspondingly. Merchants will likely integrate BNPL options more prominently to cater to this growing demand, potentially leading to higher sales volumes and increased customer loyalty. However, providers must promote responsible spending to prevent over-indebtedness among young consumers.

Expansion of BNPL Providers and Services
• The BNPL landscape in Saudi Arabia is becoming increasingly competitive, with both local and international players entering the market. Companies such as Tamara, Tabby, Spotti, Postpay, and Telr have established a presence, offering various BNPL solutions to consumers.
• The burgeoning e-commerce market and the increasing demand for flexible payment options have attracted BNPL providers to Saudi Arabia. The country’s relatively low credit card penetration presents an opportunity for BNPL services to fill the credit access gap. Additionally, the Central Bank of Saudi Arabia has made it essential for all BNPL enterprises to obtain a permit, ensuring a regulated environment that encourages new entrants.
• The competitive landscape is expected to drive innovation among BNPL providers, leading to more tailored and diverse offerings. Consumers will benefit from a wider array of payment solutions, potentially increasing overall spending and further stimulating the retail sector. However, increased competition may also lead to consolidation in the market as providers strive for profitability and market share.

Competitive Landscape and Regulatory Developments in Saudi Arabia’s Buy Now, Pay Later (BNPL) Market

The BNPL market in Saudi Arabia is undergoing significant expansion, driven by established players such as Tamara and Tabby, alongside new entrants such as Postpay and Spotti. Strategic acquisitions and product launches, such as Tamara’s acquisition of PayTabs and ToYou’s entry into BNPL, indicate a competitive and evolving landscape. As the market matures, providers will likely focus on enhancing their technological capabilities and forming new partnerships to differentiate their offerings and capture a larger share of the growing consumer base.

SAMA introduced regulatory developments in December 2023 that are expected to shape the future of BNPL in Saudi Arabia by ensuring responsible lending practices and consumer protection. These regulations will likely increase confidence in the sector, attracting further investment and enabling sustainable growth. While stricter compliance requirements may challenge smaller players, they will create a more structured environment that fosters stability and long-term expansion in the Saudi BNPL market.

Current State of the BNPL Market
• The BNPL market in Saudi Arabia has experienced rapid growth, driven by increasing consumer demand for flexible payment solutions and digital commerce expansion. Local players such as Tamara and Tabby have established strong market positions by partnering with major retailers, while international entrants such as Postpay and Spotti have intensified competition. As BNPL adoption rises, the market continues to evolve, with more players offering installment-based financing options across various sectors, including fashion, electronics, and travel.
• The sector is expected to maintain strong growth in the coming years. The regulatory environment is also evolving, with the Saudi Central Bank (SAMA) introducing new guidelines to ensure consumer protection and financial stability. As digital payment adoption increases and consumer preferences shift towards interest-free installment options, the BNPL market is set to play a more significant role in the country’s retail and financial ecosystem.

Key Players and New Entrants
• Saudi Arabia’s BNPL market is led by prominent local players such as Tamara and Tabby, who have secured strong partnerships with major retailers and e-commerce platforms. These companies offer flexible installment options, catering to a growing consumer base seeking alternatives to traditional credit. International players such as Postpay and Spotti have also entered the market, increasing competition and diversifying the available BNPL solutions for Saudi consumers.
• New entrants and financial institutions are actively exploring BNPL opportunities to capitalize on the sector’s rapid expansion. The launch of BNPL services by ToYou, a Saudi-based super app, in 2023 highlights the increasing interest from digital platforms in integrating installment-based payments. Additionally, Tamara’s acquisition of PayTabs in 2024 signals a shift towards consolidation and infrastructure enhancement, indicating that competition will continue to drive innovation in the BNPL space over the coming years.

Recent Launches, Mergers, and Acquisitions
• The Saudi BNPL market has seen significant developments through strategic acquisitions and product launches to strengthen market positions and expand service capabilities. In early 2024, Tamara’s acquisition of PayTabs marked a major step in enhancing its payment processing infrastructure, allowing it to offer more seamless transactions and broaden its service offerings. This move reflects the growing emphasis on improving operational efficiency and scaling BNPL services in the country’s digital payment ecosystem.

Outlook
• The BNPL market in Saudi Arabia is expected to see heightened competition as established providers and new entrants expand their offerings to capture a growing consumer base. This growth trajectory indicates a strong demand for BNPL services, making it a key expansion area for fintech companies and financial institutions.
• As the market matures, increased investments and regulatory oversight will shape the sector’s future direction. BNPL providers are expected to explore new verticals, such as healthcare, travel, and education financing, to diversify their revenue streams. Competition may also drive consolidation among smaller players while larger firms seek strategic partnerships to strengthen their market presence. The evolving landscape will provide consumers with tailored BNPL solutions while ensuring responsible lending practices through regulatory frameworks.

Regulatory Changes
• Implementing these regulations aims to promote sustainable growth in the BNPL sector by ensuring that companies adhere to prudent operational standards. By establishing clear guidelines, SAMA seeks to balance the encouragement of financial innovation with the imperative of consumer protection. This regulatory clarity is expected to foster greater confidence among consumers and investors, potentially leading to increased adoption of BNPL services and further investments in the sector.


Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Saudi Arabia through 58 tables and 75 charts. Below is a summary of key market segments:

Saudi Arabia BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Saudi Arabia Buy Now Pay Later Revenue Analysis
• 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
• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Saudi Arabia BNPL by Purpose
• Convenience – Short Term Loans
• Credit – Long Term Loans

Saudi Arabia BNPL by Business Model
• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Saudi Arabia BNPL by Merchant Ecosystem
• Open Loop System
• Closed Loop System

Saudi Arabia BNPL by Distribution Model Analysis
• Standalone
• Banks & Payment Service Providers
• Marketplaces

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

Saudi Arabia BNPL Analysis by Channel
• Online Channel
• POS Channel

Saudi Arabia Buy Now Pay Later in Retail Shopping: 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 in Home Improvement: 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 in Travel: 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 in Media and Entertainment: 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 in Services: 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 in Automotive: 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 in Healthcare and Wellness: 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 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
• Monthly Expense Segments


Reasons To Buy
• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in Saudi Arabia: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in Saudi Arabia. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.