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. 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.Īccording to a report from, 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. 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. The boom in online shopping is expected to drive BNPL usage in Saudi Arabia ![]() From the short to medium-term perspective, the publisher expects more such regulatory guidelines to emerge in the Kingdom of Saudi Arabia. In October 2021, the Saudi Central Bank announced that BNPL providers operating in the country require a permit to remain functional. However, as the sector continues to gain increasing traction among both merchants and consumers, regulatory scrutiny has also increased in Saudi Arabia. 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. 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 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. 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. ![]() The global pandemic-induced lockdowns and social distancing measures accelerated the consumer shift to online payment and other digital financial services. 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. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 31.6% during 2022-2028. ![]() Medium to long term growth story of BNPL industry in Saudi Arabia remains strong. DUBLIN-( BUSINESS WIRE)-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 's offering.īNPL payments are expected to grow by 61.2% on an annual basis to reach US$1,067.7 million in 2022.
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