Buy Now Pay Later (BNPL) - Qualified Applications to Lead the Payments Sector (Riyadh Valley Company)

Summary

• The global Buy Now Pay Later (BNPL) market reached $718 billion in transaction volume in 2024, accounting for 1.6% of total global payment transactions, and is projected to grow to $1,486 billion by 2030 at a CAGR of 12.9%.p.7
• Sweden recorded the highest global BNPL market penetration rate in 2024 at 6.1% of its domestic payment market, while China remained the largest market by transaction volume, capturing 32.7% of global transactions.p.7
• In 2024, the Asia, Southeast Asia, and Pacific region led globally with $292 billion in BNPL e-commerce and point-of-sale transactions, compared to $15 billion in the Middle East and Africa.p.8
• The Middle East and Africa BNPL market was valued at $13 billion in 2024 (1.7% of total regional payments) and is expected to expand to $18 billion by 2030 at a CAGR of 5.6%.p.9
• Saudi Arabia and the UAE accounted for $7 billion in BNPL transactions in 2024, representing approximately 49% of the overall BNPL market in the region.p.9
• Saudi Arabia's BNPL market reached $4.3 billion in 2024 (1.9% of total payments) and is forecasted to increase to $5.7 billion by 2030, driven by digital transformation and 2030 vision targets.p.11
• Regulations by the Saudi Central Bank (SAMA) require BNPL companies to be joint-stock entities with a minimum capital of SAR 5 million and impose an individual consumer debt limit of SAR 5,000.p.13

Key insights

1. Klarna, Afterpay, and Affirm collectively commanded 67.4% of the US Buy Now Pay Later market in December 2024, compared to a 12.3% share held by PayPal.p.8
2. Middle Eastern consumers are increasingly adopting BNPL to mitigate inflationary impacts, with 33% of residents in Saudi Arabia and 20% in the UAE registered on BNPL platforms.p.9
3. Tabby raised $160 million in 2025 at a $3.3 billion valuation led by Blue Pool Capital and Hassana Investment Company.p.9
4. The Saudi Central Bank mandates that BNPL providers cannot levy fees on consumers, excluding SAMA-compliant late payment or debt collection fees.p.13
5. Millennials and Gen Z consumers constitute over 65% of the BNPL user base in Saudi Arabia.p.12
6. In Saudi Arabia, 77% of consumers use BNPL services for essential purchases such as healthcare and education rather than luxury items.p.11
7. Saudi Arabia's BNPL regulatory rules require licensed providers to maintain a workforce Saudiization rate of at least 50% upon starting operations, increasing annually to 75%.p.13
8. Riyadh Valley Company invests in B2B BNPL provider Bynow through the Flat6Labs fund, which charges sellers commission fees between 3% and 7%.p.13