RIYADH: Buy now, pay later services are becoming increasingly popular in Saudi Arabia, where the fintech industry is quickly changing everyday banking procedures. Across the country, this change is changing how individuals handle their money and make purchases by making it easier to access flexible payment options. Seventy-seven percent of Saudi consumers currently utilize BNPL for necessities, according to a recent research from top BNPL provider Tabby.
According to Tabby data, first-time BNPL transactions are twice more likely to be for necessities than for wants, with medical and educational costs leading the way. This suggests that important transactions, as opposed to non-essential needs, account for a significant amount of BNPL consumption.
Additionally, according to Tabby’s statistics, the average cost of necessities purchased through BNPL is greater than the cost of discretionary expenditures. This implies that BNPL provides a convenient and reasonably priced means of acquiring expensive essentials, such home goods and insurance, even while customers prioritize their needs.
BNPL has completely changed the way people shop by enabling payments to be stretched out over a long period of time. In addition to giving customers greater financial autonomy, it also changes how they interact with companies. Abdulla Al-Moayed, CEO of Tarabut, told Arab News that there are a number of reasons why BNPL is on the increase among Saudi consumers.
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