Region:Middle East
Author(s):Arunesh Bakshi, Anchal Gupta
Product Code:KR1206
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 of Buy Now Pay Later Industry in Saudi Arabia. The report also covers overview and genesis of the industry, market size in terms of revenue generated; market segmentation by types of services, by end users, by revenue division on the basis of Number of Transactions, on the basis of Number of Transactions, by Age Group of Consumers; growth enablers and drivers, challenges and bottlenecks, trends driving adoption of digital innovation; regulatory framework; end user analysis, industry analysis, competitive landscape including competition scenario, market shares of major players. The report concludes with future market projections of each product segmentation and analyst recommendations.
Buy now, pay later (BNPL) arrangements are becoming increasingly popular in Saudi Arabia, a trend that has been fuelled by the e-commerce boom and embraced by the country’s youth, tech-savvy population eager to adopt what they feel is a more convenient and transparent way to finance purchases. Digital Payments are gaining foothold in the KSA Market as mode of payment because more FinTechs are collaborating with merchants.
During the LEAP tech conference held recently in Riyadh, global payment solutions provider Checkout.com shared findings from a survey of Saudi consumers it conducted in partnership with YouGov, and shared key growth metrics, outlining the rapid expansion of Saudi Arabia’s e-commerce market, and rising eagerness from the public to use BNPL products.
By mode of payment (Online and Offline): Buy Now Pay Later market can be segmented on the basis of mode of payment: online and offline. Covid-19 fueled the need for online mode of transaction due to adoption of cashless payments which led to the boom of the industry in the country.
By end user (Ecommerce Giants, Physical Retailers, Travel and Entertainment Merchants and Food Aggregators): Buy Now Pay Later market can be segmented on the basis of type of end user: Ecommerce Giants, Physical Retailers, Travel and Entertainment Merchants and Food Aggregators.
By age group (Below 24 years, 24-36 years, 36-50 years and Above 50 years): Buy Now Pay Later market can be segmented on the basis of age group: Below 24 years, 24-36 years, 36-50 years and Above 50 years. This is attributed to the increasing working age populationwhich is gradually shifting from credit cards to BNPL as mode of payments.
The competitive rivalry is in the medium range as BNPL industry in KSA is just picking up. With major Startups emerging and trying to gain traction in this hugely attractive industry. Few of the major players include Tamara, Tabby, PostPay and Spotii. The market is also witnessing inception of global giants in the industry such as the recent acquisition of Spotii.
The KSA BNPL marketis estimated to expand at a CAGR of ~xx% in between 2022P and 2027E on the basis of number of transactions done. 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 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. Average order value of BNPL transactions is estimated to expand at a CAGR of xx% in between 2022P and 2027E. A gradual increase in the contribution of below 24 years of age group in market share will be observed in the coming future. This is attributed to increasing GenZ and millennials who will be readily adopting BNPL as the mode of their transactions. 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.
BNPL Industry positioning
Socio demographic Outlook of Saudi Arabia
Economic Landscape and Expatriate Population of Saudi Arabia
Overview of Global BNPL Industry
Presence of Global BNPL Players
Disruptors of Credit card Globally
Case Studies of Leading Global BNPL Providers
Trends of BPNL Industry
Market size of BPNL
BNPL transaction process
Key Features and developments in KSA BPNL
Ecosystem of Major Entities in Buy Now Pay Later Industry in KSA
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
Market Size of Buy Now Pay Later in KSA on the basis of Revenue, Number of Transactions and Average Order Value, 2019-2022P
Market Segmentation by mode of payment, by end user, and by age group
Future Market Size of Buy Now Pay Later in KSA on the basis of Revenue
Future Market Segmentation by Mode of Payments, by end user and by age group
Future Market Size of BNPL in KSA
Industry Speaks
Analyst Recommendations
Research Methodolog
Market Size of Buy Now Pay Later in KSA
Market Segmentation By mode of payment:
Market Segmentation By end user:
Market Segmentation By age group:
Companies Covered:
1.1. How is Buy Now Pay Later Industry Positioned in KSA?
2.1. Socio-Demographic Outlook of Saudi Arabia
2.2.Economic Landscape and Expatriate Population of Saudi Arabia
3.1. Overview of Global BNPL Industry
3.2. Presence of BNPL Players across Globally
3.3. Latest Developments in Global BNPL Landscape
3.4. Disruptors of Credit card globally
3.5. Case Studies of Leading Global BNPL Providers
4.1. Key Features and Development in KSABuy Now Pay Later Market
4.2. How a Buy Now Pay Later Transaction Happens
4.3. Key Trends of KSA Buy Now Pay Later Industry
4.4. Ecosystem of Major Entities in Buy Now Pay Later Industry in KSA
5.1. Market Size of Buy Now Pay Later in KSA on the basis of Revenue, 2019-2022
5.2. Market Size of Buy Now Pay Later in KSA on the basis of Number of Transactions, 2019-2022
5.3. Market Size of Buy Now Pay Later in KSA on the basis of Average Order Value, 2019-2022
6.1. Market Segmentation by Mode of Payments, 2022
6.2. Market Segmentation by Type of End User, 2022
6.3. Market Segmentation By Age Group of Consumers, 2022
7.1. Growth Drivers of KSA Buy Now Pay Later Market
7.2. Porter’s Five Force Analysis of the KSA Buy Now Pay Later Market
7.3. Trends and Developments in KSA Buy Now Pay Later Market
7.4. Issues and Challenges in the KSA Buy Now Pay Later Market
7.5. SWOT Analysis of KSA Buy Now Pay Later Market
7.6. Role of Government and Regulations in the KSA Buy Now Pay Later Industry
7.7. Impact of COVID-19
8.1. TAM, SAM and SOM of KSA BNPL Industry
8.2. Adoption Rationale of Consumers towards Buy Now Pay Later Services
8.3. Cross Comparison of BNPL players on major decision making parameters for brand preference
8.4. Consumer Persona Analysis
9.1. Investment Analysis of Major Players in the BNPL Space from 2016 to 2021
9.2. Detailed Investment Analysis of Major Players in the BNPL Space from 2019 to 2022
9.3. Company Profile of Tabby
9.4. Company Profile of Spotii
9.5. Company Profile of Tamara
9.6. Company Profile of Cashew
9.7. Company Profile of Postpay
10.1. Future Market Size of Buy Now Pay Later in KSA on the basis of Revenue, 2022-2027E
10.2. Future Market Size of Buy Now Pay Later in KSA on the basis of Number of Transactions, 2022-2027E
10.3. Future Market Size of Buy Now Pay Later in KSA on the basis of Average Order Value, 2022-2027E
10.4. Future Market Segmentation by Mode of Payments, 2022-2027E
10.5. Future Market Segmentation by Type of End User, 2022-2027E
10.6. Future Market Segmentation By Age Group of Consumers, 2022-2027E
13.1. Market Definitions
13.2. Abbreviations Used
13.3. Market Sizing Approach: KSA Buy Now Pay Later Market
13.4. Consolidated Research Approach
13.5. Research Limitations and Future Conclusions
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