Saudi Arabia Buy Now Pay Later Services Market Size (2024 - 2029)

The market size of buy now pay later services in Saudi Arabia is experiencing significant growth, driven by the expansion of e-commerce platforms and the increasing adoption of digital payment solutions. This payment service allows consumers to make purchases without upfront payments, enhancing convenience and flexibility in managing expenses. The digital transformation in retail has altered consumer shopping behavior, further propelling the market's expansion. With easy access through smartphones and online platforms, the customer experience has improved, attracting new entrants and innovative products to the market. Market players are actively seeking funding to capitalize on the growing demand and increase their market share.

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Market Size of Saudi Arabia Buy Now Pay Later Services Industry

Saudi Arabia Buy Now Pay Later Services Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.40 Billion
Market Size (2029) USD 2.80 Billion
CAGR (2024 - 2029) 10.00 %
Market Concentration Low

Major Players

Saudi Arabia Buy Now Pay Later Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Buy Now Pay Later Services Market Analysis

The Saudi Arabia Buy Now Pay Later Services Market size is estimated at USD 1.40 billion in 2024, and is expected to reach USD 2.80 billion by 2029, growing at a CAGR of greater than 10% during the forecast period (2024-2029).

In Saudi Arabia, the adoption of buy-now-pay-later services is witnessing an increase due to the widespread growth of e-commerce platforms. With the buy-now-pay-later payment service, consumers can shop online or in-store by selecting the BNPL service and receiving the products without making an upfront payment. The buy now pay later service provides customers with convenient and flexible purchases and helps in managing expenses.

The emergence of digitalization in retail and e-commerce platforms in Saudi Arabia changed the shopping behavior of customers, which supported the growth of the market. The easy access to buy now pay later services using smartphones and online platforms improved the customer experience, leading to the growth of buy now pay later services in the country.

Many new players are entering the buy now pay later services market in Saudi Arabia and introducing many innovative products. To meet the increasing demand for buy now pay later services firms in Saudi Arabia, market players are raising funds substantially, focussing on large gross merchandise value and volume in the market.

Saudi Arabia Buy Now Pay Later Services Industry Segmentation

Buy now, pay later (BNPL) is a short-term financing that allows customers to make purchases 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 in online shopping.

The Saudi Arabian buy now, pay later services market is segmented into channel and end-user types. By channel, the market is segmented into online and POS (point of sale). The market is segmented by end-users into kitchen appliances, consumer electronics, fashion and personal care, and healthcare. The report offers market size and forecasts for the market in terms of revenue (USD) for all the above segments.

By Channel
Online
POS (Point of Sale)
By End User
Kitchen Appliances
Electronic Appliances
Fashion and Personal Care
Healthcare
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Saudi Arabia Buy Now Pay Later Services Market Size Summary

The Buy Now Pay Later (BNPL) services market in Saudi Arabia is experiencing significant growth, driven by the rapid expansion of e-commerce platforms and digitalization in retail. This payment method allows consumers to make purchases online or in-store without upfront payments, offering convenience and flexibility in managing expenses. The increasing use of smartphones and online platforms has enhanced customer experiences, further propelling market growth. New entrants are continuously introducing innovative products, and existing firms are raising substantial funds to meet the rising demand, focusing on increasing gross merchandise value and volume. The adoption of BNPL services is also being fueled by the growing popularity of online payment methods across various sectors, including banking, health insurance, retail, and consumer goods.

Large enterprises in Saudi Arabia are increasingly integrating BNPL services to enhance sales and customer loyalty, leveraging advanced technology and partnerships with leading BNPL providers. The market is characterized by fragmentation, with numerous players entering the space under the approval of the Central Bank of Saudi Arabia. This has led to a focus on point-of-sale and online installment loans as payment methods, creating ample growth opportunities. Key players in the market include Spotti, Tabby, Tamara, Telr, and Postpay, with recent collaborations, such as the partnership between ToYou and Tabby, highlighting the ongoing innovation and expansion within the sector.

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Saudi Arabia Buy Now Pay Later Services Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Driver

      1. 1.2.1 Increasing Consumer Demand for Flexible Payment Options

      2. 1.2.2 Rise in E-commerce and Online Shopping

    3. 1.3 Market Restraints

      1. 1.3.1 High Interest Rates is Restraining the Market

      2. 1.3.2 Availability of Alternatives

    4. 1.4 Market Opportunities

      1. 1.4.1 Partnering with Retailers and E-commerce Platforms

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insight into Technologial Adoption in the Market

    7. 1.7 Insight into Various Government Regulations in the Market

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Channel

      1. 2.1.1 Online

      2. 2.1.2 POS (Point of Sale)

    2. 2.2 By End User

      1. 2.2.1 Kitchen Appliances

      2. 2.2.2 Electronic Appliances

      3. 2.2.3 Fashion and Personal Care

      4. 2.2.4 Healthcare

Saudi Arabia Buy Now Pay Later Services Market Size FAQs

The Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 1.40 billion in 2024 and grow at a CAGR of greater than 10% to reach USD 2.80 billion by 2029.

In 2024, the Saudi Arabia Buy Now Pay Later Services Market size is expected to reach USD 1.40 billion.

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