Buy Now
1. The Covid-19 epidemic is a catalyst for energizing and opening up the BNPL market in the nation, together with external investments made in the sector
Recent years have seen a substantial increase in digital transactions in Saudi Arabia. Which is one of the main causes for the rise of digital credit lending in the nation, including BNPL. The ideal fintech innovation, BNPL, was created in response to consumer demand for alternatives to the debt-based credit card system. BNPL participants in the region are implementing solid CX business strategies together with alliances with top regional banks, like the Saudi National Bank (SNB). Moreover, these companies are making their mark by adding value and providing customers with simple financial products.
2. The KSA market for buy now pay later has seen substantial growth by the end of 2022 and a CAGR of 135% between 2019 and 2022
The buy Now pay later industry in KSA generated several million dollars in revenue in 2022, expanding at a CAGR of 135% from 2019 to 2022P. Many residents lost their jobs as a result of the COVID-19 outbreak, leaving them to rely primarily on their savings. As a result, there was a greater need for an additional credit line, which the BNPL services could satisfy. Prior to a few years ago, the bulk of the region's population was underserved by financial services companies. Even though individuals are well-banked, credit card penetration was at an all-time low, which helped BNPL gain popularity quickly when it first started in the area.
Request For Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NTk2MDQ2
3. With an expanded consumer base and collaborations with merchants and retailers, BNPL players have seen a surge in the country in a short period of time
The number of businesses providing BNPL solutions in the Middle East has increased in only one year. Its user base is advancing at a rate that is commensurate with the amount of activity taking place there. When compared to prior years, a sizable portion of Saudi Arabian consumers used BNPL payment methods like Tamara in 2021, and more clients are now investigating BNPL services. Moreover, the impact of COVID-19 is starting to lessen, which is causing the offline shopping mode to reemerge. Players in the BNPL won't let the chance go by. They have already begun collaborating with top retailers to offer BNPL at checkout points in real locations as a point-of-sale financing option.
4. The expansion of the BNPL business in KSA faces significant challenges from credit recovery combined with excessive client expenditure supported by persistently high competition
Issuers of BNPL services run the danger of not being able to recoup loan sums if customers don't repay on time. Although there is a carry-over fee associated with the late amounts, consumers may continue to incur additional costs. With this, the regulators are concerned about the increased risk to consumers and the rapid growth of the BNPL sector, due to these methodologies' assessment of unsecured credit risk and impulsive purchases rise. In addition, the BNPL industry in KSA is also highly competitive. There are few major players operating in the landscape, which implies that other players cannot purely constrain themselves as BNPL player to operate in the market. Companies in the nascent or growth stage need to figure out multiple revenue streams and different methods of financing such as a card, cashback, and loans or quick financing. Moreover, companies have to adopt interest free model in order to adhere to Sharia Laws.
For more information on the research report, refer to below link:-
KSA Buy Now Pay Later Market
Related Reports:-
India Buy Now Pay Later Market Outlook to 2026: Cascading Growth driven by one-click payment ease, unmatched expediency among lending solutions and free of cost deferment of payments, coupled with rising adoption by Merchant Payments due to increase in Customer Conversion and Sales Value
UAE Buy Now Pay Later Industry Outlook to 2027: Driven by adoption of cashless society, increasing Genz & millennials population coupled with shifting preference towards easy interest free extra credit line sources
2. In KSA, BNPL as a mode of payment is receiving a great response from both retailers and customers due to the perks and convenience attached to this service
3. As a result, the BNPL industry in KSA is growing at a CAGR of 135% between 2019 and 2022P; around 60% revenue was generated by the e-commerce giants
