Gurugram, India, March 15, 2023 (GLOBE NEWSWIRE) --
- Online mode of payment will continue to dominate the BNPL industry in KSA due to Sharia compliant which promotes digital payments when compared to offline mode.
- Covid-19 pandemic lead to substantial growth in the e-commerce industry, with 2.5 times faster than growth before the pandemic, leading to increasing online transactions in KSA.
- Increasing demand for extra credit line with less stringent KYC procedures without relying on CIBIL scores will be traction for consumers for utilization of BNPL services.
Surging Consumer base: With increasing participation from fintech companies in BNPL ground, its user base is making equally big strides. A major chunk of Saudi Arabian consumers have used BNPL payment methods such as Tamara in 2021 when compared to previous years, with more customers exploring the BNPL services. In just one year, the Middle East region has witnessed an upsurge in the number of companies offering BNPL solutions.
Growing Retailers: With the diminishing Covid-19 impact, the return of the offline shopping mode is being witnessed. BNPL players are not going let the opportunity pass by. They have already started collaborating with leading retailers to offer BNPL at physical stores at checkout points as a point-of-sale financing tool. The growing e-commerce market has pushed the retailers to go for different mode of user friendly payment mechanisms.
Expanding Partnerships: BNPL entities are making their mark by creating value for merchants and offering straightforward financial products to customers. BNPL giant Tamara works with global retail leaders like Adidas, IKEA, L’Occitane, , as well as top regional brands like Namshi, Abyat, Faces, Niceone, and , across the GCC. In just one year, the Middle East region has witnessed an upsurge in the number of companies offering BNPL solutions.
Moving to easy cashless credit: Increasing adoption of cashless society with emergence of digital payments fueled by surging working age class will derive the traction of BNPL industry among the users in KSA. With increasing demand for extra credit line with less stringent KYC procedures without relying on CIBIL scores will be traction for consumers for utilization of BNPL services.
The Report “KSA Buy Now Pay Later Market Outlook to 2027- Driven by digitalization, government support as a part of Saudi vision 2030 increasing Genz & millennials population due to influx of expatriates coupled with shifting preference towards easy interest free extra credit line sources” by Ken Research provides a comprehensive analysis of the potential Buy Now Pay Later industry in Saudi Arabia. People shifting from credit cards to BNPL as unlike credit cards, BNPL companies provide easy credit checks which are solely not based upon the CIBIL score, hence providing easy access to the services. Buy Now Pay Later Market in KSA recorded a positive CAGR on the basis of revenue generated in between 2022P and 2027E.
Key Segments Covered:-
KSA BNPL Market
By mode of payment
- Online
- Offline
By end user
- Ecommerce Giant
- Physical Retailers
- Travel and entertainment Merchants
- Food Merchants
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By age group
- Below 24
- 24-36
- 36-50
- Above 50
Key Target Audience:-
- Fintech Companies
- BNPL players
- Retail merchants and chains
- Government and regulatory bodies
- New entrants in the BNPL space
- Associated or affiliated Banks with Insurance entities
Time Period Captured in the Report:-
- Historical Year: 2019-2021
- Base Year: 2022
- Forecast Period: 2023– 2027F
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Companies Covered:-
- Tabby
- Spotii
- Tamara
- Cashew
- PostPay
Key Topics Covered in the Report:-
- BNPL Industry positioning
- Socio demographic Outlook of Saudi Arabia
- Presence of Global BNPL Players
- Trends of BPNL Industry
- Market size of BPNL
- BNPL transaction process
- Key Features and developments in KSA BPNL
- SWOT Analysis of KSA BNPL
- Issues and Challenges in KSA BNPL
- Investment Analysis of players in BNPL Space
- Role of Government and regulations in KSA BNPL
- Porter’s Five force Analysis in KSA BPNL
- Future Market Size of BNPL in KSA
For more insights on the market intelligence, refer to below link:-
KSA Buy Now Pay Later Market
Related Reports By Ken Research:-
UAE BNPL market is expected to expand with a single digit CAGR in between 2022 and 2027 on the basis of revenue generated. It is anticipated that BNPL industry will grow at a substantial rate owing to factors such as due to wider acceptability at shops and better product offerings in a competitive landscape in the coming years. UAE has been culturally conservative towards BNPL and it is always seen as a debt trap instrument. But new-age start-ups are very focused on changing this mentality by creating awareness about how BNPL can be used for daily expenditure. Many new FinTechs will be entering the UAE BNPL space by offering BNPL cards to individuals and corporates. All the BNPL Players in this space are trying to attract customers through their digital offerings and will witness significant growth in new BNPL customers in the coming years.
BNPL Players are also focusing on bringing out co-branded cards with features and rewards dedicated to a segment. Some global players are providing best-in-class BNPL solutions with the latest mobile application features such as digital onboarding, enhanced UX/UI, single click payment, QR, token-based payments, dispute resolution, in-app support and spend analysis. Traditional players need to take a cue from these players to enhance their offerings in the coming future. Players in this sector need to focus more on building the omnichannel ecosystem to cater to both the offline and online market.
Malaysia BNPL Market is at growing stage and has a consolidated market with about 5-6 major players capturing large portion of the market. Atome is the market leader. The Malaysia BNPL Market is expected to witness a further consolidation in coming years. At present, market is composed of few large players and other small players. Not much new players are expected to come up and as a result, only Big Players would prevail in the market. Increasing Partnerships, Mergers and Acquisitions will further support the trend. Th players are competing on the basis of Active Users, Revenue, Payment Tenure, Credit Limit and Margin Charged.
Buy Now Pay Later industry in South Africa is estimated to generate a revenue of USD 1569 Million in 2027E, expanding at a CAGR of double digits in between 2022P and 2027E Increasing demand for extra credit line with less stringent KYC procedures without relying on CIBIL scores will be traction for consumers for utilization of BNPL services. Retailers as end user will witness upsurge in revenue contribution to 80% of the market share as more retailers will be coming forward to incorporate the BNPL services in their online and offline store to increase consumer base by collaborating with BNPL players.
The Used Buy Now Pay later Market in India is anticipated to grow with the growing adoption of smart phones and internet penetration, credit demand unfulfilled by credit cards, and convenience offered by BNPL platforms. Over the forecast period FY’22-FY’26, the India Buy Now Pay Later Market is further anticipated to showcase an upward trend in terms of Gross Merchandise Value (“GMV”) and average ticket size, much faster than the earlier years, with the market consistently expanding. Expected RBI regulations are expected to make the market more secure for customers as well.
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Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
Ankur@kenresearch.com
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