Buy Now, Pay Later’ Emerges as a Leading Payment Preference in Saudi Arabia
Riyadh – Flexible payment solutions are reshaping the consumer finance landscape in Saudi Arabia, with Buy Now, Pay Later (BNPL) services gaining widespread adoption across the Kingdom. According to a recent report by BNPL provider Tabby, 77% of Saudi consumers now use BNPL for essential purchases, underlining a major shift in spending habits.
Unlike earlier assumptions that BNPL would mostly support discretionary spending, Tabby’s data suggests that first-time users are primarily leveraging the model for necessary expenses such as education, medical services, insurance, and homeware. The average value of essential BNPL transactions now exceeds that of non-essential purchases, pointing to increased demand for accessible payment options for higher-cost necessities.
Saudi Arabia’s fintech ecosystem is undergoing rapid development, and BNPL has quickly established itself as a core offering, particularly for younger consumers and those seeking alternatives to credit cards or traditional loans. Interest-free and installment-based repayment structures are helping consumers manage larger purchases without incurring additional financial burdens.
According to Arjun Vir Singh, partner at Arthur D. Little, the rise of e-commerce—accelerated during the COVID-19 pandemic—has significantly boosted BNPL adoption. This trend is now extending into offline retail, with digital payment systems becoming increasingly integrated into brick-and-mortar shopping experiences.
The sector’s growth is also being supported by a positive regulatory environment and rising competition from local fintech players. As BNPL expands into new areas such as travel, real estate, and B2B financing, it is expected to further challenge traditional credit models and open new avenues for businesses and consumers alike.
Retailers are already seeing benefits through increased transaction values and stronger customer loyalty linked to BNPL usage. With strategic integration, BNPL is set to become not just a payment tool, but a growth enabler across multiple segments of Saudi Arabia’s evolving digital economy.
