Saudi Arabia Buy Now Pay Later Services Market Overview

Market Size in 2025: USD 109.1 Million

Market Forecast in 2034: USD 619.1 Million

Market Growth Rate 2026-2034: 21.28%

According to IMARC Group's latest research publication, "Saudi Arabia Buy Now Pay Later Services Market Report by Channel (Online, Point of Sale (POS)), Enterprise Size (Large Enterprises, Small and Medium Enterprises), End Use (Consumer Electronics, Fashion and Garment, Healthcare, Leisure and Entertainment, Retail, and Others), and Region 2026-2034", the Saudi Arabia buy now pay later services market size reached USD 109.1 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 619.1 Million by 2034, exhibiting a growth rate (CAGR) of 21.28% during 2026-2034.

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How AI and Digital Transformation is Reshaping the Future of Saudi Arabia Buy Now Pay Later Services Market

• AI-driven credit scoring lets BNPL providers approve customers in seconds using alternative data, helping expand access while keeping default rates under tighter, more predictable control.​

• Advanced fraud-detection engines use machine learning to flag suspicious BNPL applications and transactions, with some financial institutions cutting false positives by up to 90 percent.​

• Open banking and Vision 2030 fintech initiatives allow AI models to tap richer payment data, improving risk assessment and supporting safer, higher-value BNPL limits for qualified users.​

• Retailers plug AI-powered BNPL into e-commerce funnels to test offers and upsell paths, leveraging Saudi Arabia’s 100-million-scale monthly digital payment transactions to boost conversion.​

• Leading BNPL players increasingly treat AI as a growth lever, using predictive analytics to segment users, tailor repayment plans, and reduce late-payment incidents across their Saudi portfolios.

Saudi Arabia Buy Now Pay Later Services Market Trends & Drivers:

One major factor lifting Saudi Arabia’s BNPL service market is the strong performance and rapid scaling of homegrown fintech leaders like Tabby and Tamara. Together they generated more than 535 million riyals in revenue in a recent quarter, with merchant commissions making up about 90% of their income. Both players report double-digit revenue growth and a clear move into profitability, which reassures investors and encourages more retailers to integrate BNPL at checkout. As these brands partner with big names in fashion, electronics, travel, and even everyday retail, BNPL becomes a mainstream payment choice for digitally active Saudis.​

Supportive regulation and financial sector oversight are another powerful growth engine, because they give both consumers and merchants confidence in BNPL as a formal product, not a grey-area credit hack. The Saudi Central Bank now requires BNPL providers to obtain a specific license, follow detailed governance rules, and comply with customer-protection standards, including credit limits and activity caps. This framework encourages responsible lending and better risk management while still leaving room for product innovation and new entrants. As a result, large retailers, marketplaces, and even SMEs feel more comfortable embedding BNPL into omnichannel journeys, from in-store QR links to e-commerce and app checkouts.​

The broader shift toward digital payments and e-commerce is also giving BNPL a strong tailwind, especially among younger, mobile-first consumers. Online transaction volumes on Mada cards have climbed into the hundreds of millions of payments per month, creating a huge base of customers already comfortable with cashless shopping. BNPL helps reduce cart abandonment and increase ticket sizes, with some Saudi retailers reporting sales uplifts of around 20–25% after integrating installment options at checkout. For Gen Z and millennials with limited credit card access, splitting payments over several interest-free installments feels like a practical, low-friction way to manage budgets while still engaging with premium brands and emerging online platforms.

Saudi Arabia Buy Now Pay Later Services Industry Segmentation:

The report has segmented the market into the following categories:

Channel Insights:

• Online

• Point of Sale (POS)

Enterprise Size Insights:

• Large Enterprises

• Small and Medium Enterprises

End Use Insights:

• Consumer Electronics

• Fashion and Garment

• Healthcare

• Leisure and Entertainment

• Retail

• Others

Regional Insights:

• Northern and Central Region

• Western Region

• Eastern Region

• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Buy Now Pay Later Services Market

• 2025 August: Saudi Central Bank announces new regulatory framework for BNPL services, establishing consumer protection guidelines and operational standards while maintaining Sharia compliance requirements for Islamic finance principles.

• 2025 July: Major international BNPL providers establish strategic partnerships with Saudi retail giants, integrating payment solutions across thousands of merchant locations and expanding access to installment payment options for Saudi consumers.

• 2025 June: Fintech innovation hubs in Riyadh and Jeddah launch new incubation programs for BNPL startups, supported by Vision 2030 initiatives to develop local fintech capabilities and promote digital payment ecosystem growth.

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