Saudi Arabia Buy Now Pay Later Markets Report 2022: BNPL Payments are Expected to Grow by 61.2% to Reach $1,067.7 Million by the End of 2022 - Forecasts to 2028 - ResearchAndMarkets.com

The "Saudi Arabia Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 61.2% on an annual basis to reach US$1,067.7 million in 2022.

Medium to long term growth story of BNPL industry in Saudi Arabia remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 31.6% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$662.2 million in 2021 to reach US$5,537.8 million by 2028.

The global pandemic-induced lockdowns and social distancing measures accelerated the consumer shift to online payment and other digital financial services. Markets like Saudi Arabia also have experienced a rapid increase in short-term credit options, such as buy now pay later (BNPL), in the aftermath of the global pandemic outbreak.

While Gen Z and millennials have been the early adopters of the BNPL payment method in Saudi Arabia, the trend is expected to accelerate among consumers across different age groups over the next three to four years. The growth of the BNPL market will also be supported by the rapid growth of the e-commerce industry in the Middle East and North Africa region.

While BNPL players in Saudi Arabia continue to expand their merchant partner network, firms are also considering regional expansion to drive market share and growth over the next three to four years. However, as the sector continues to gain increasing traction among both merchants and consumers, regulatory scrutiny has also increased in Saudi Arabia. In October 2021, the Saudi Central Bank announced that BNPL providers operating in the country require a permit to remain functional. From the short to medium-term perspective, the publisher expects more such regulatory guidelines to emerge in the Kingdom of Saudi Arabia.

The boom in online shopping is expected to drive BNPL usage in Saudi Arabia

The growth in online shopping during the global pandemic outbreak has been one of the major contributors to the growth of the BNPL industry in Saudi Arabia. This trend is expected to continue in 2022 as well, as more and more shoppers are turning to online shopping channels and digital payment methods.

According to a report from Checkout.com, 55% of the consumers in the Kingdom used the BNPL payment option in 2021, while another 27% are planning to use the service in 2022.

With the adoption of BNPL payment methods surging on online shopping platforms, the publisher expects BNPL providers to further increase their network of e-commerce merchants in the country.

Overall, the growing adoption of deferred payment services, which is set to accelerate further in 2022, means that the payment method is poised to become mainstream. Consequently, the publisher expects investment in the sector to rise significantly over the next three to four years.

Domestic BNPL firms are considering regional expansion to drive market share and growth

In 2022, the adoption of deferred payment services is expected to grow at a significant rate, especially in the United Arab Emirates. Consequently, domestic BNPL firms are considering regional expansion to capitalize on the high growth potential of the Middle Eastern BNPL industry.

In June 2022, Tamara, one of the leading BNPL platforms based in Saudi Arabia, announced that the firm is set to expand its operations in the United Arab Emirates. Notably, the expansion comes after a February 2022 report from Checkout.com, one of the lead investors in Tamara, stated that BNPL usage is expected to grow by 31% in the next 12 months in the United Arab Emirates.

As the market continues to grow and expand over the next three to four years, the publisher expects more firms to expand their presence in the GCC countries from the short to medium-term perspective.

BNPL services are expected to make significant inroads in the travel and tourism sector

In 2022, the travel and tourism sector around the world is expected to post a strong growth recovery, and Saudi Arabia is no exception. Amid the pent-up travel demand, BNPL services are expected to make significant inroads in the travel and tourism sector over the next three to four years. Online travel platforms, national carriers, and hospitality groups, among others, are expected to partner with payment service providers to launch BNPL services. These trends are already evident in the Saudi Arabian industry.

In July 2022, flynas, a Saudi-based airline, announced that the firm had forged a strategic alliance with Amazon Payment Services to provide travelers in Saudi Arabia with a BNPL payment option. This makes flynas the first airline to offer a BNPL service in the country.

The trend of airline-focused BNPL service is on the rise globally. In April 2022, Air Canada announced that it partnered with Visa to offer travelers a BNPL payment option. Similarly, Spirit Airlines partnered with Uplift, a fly now pay later service, to integrate the BNPL option into its ticketing platform.

From the short to medium-term perspective, the publisher expects more airline carriers to launch a BNPL payment option in Saudi Arabia as well as around the world as the demand continues to grow among travelers.

Scope

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 Operational KPIs

  • Buy Now Pay Later Revenues, 2019 - 2028
  • Buy Now Pay Later Share by Revenue Segments
  • Buy Now Pay Later Merchant Commission, 2019 - 2028
  • Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
  • Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
  • Buy Now Pay Later Accounts, 2019 - 2028
  • Buy Now Pay Later Bad Debt, 2019 - 2028

Saudi Arabia Buy Now Pay Later Market Share Analysis by Key Players (Tabby, Tamara, Cashew Payments, Spotii, Postpay)

Saudi Arabia Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • 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 Leisure & 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 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 Other: 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

  • Buy Now Pay Later Sales Uplift by Product Category
  • Buy Now Pay Later Spend Share by Age Group
  • Buy Now Pay Later Gross Merchandise Share by Income
  • Buy Now Pay Later Gross Merchandise Value Share by Gender
  • Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

For more information about this report visit https://www.researchandmarkets.com/r/bbwfg

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