Why Buy Now Pay Later is on the Rise Across the GCC
Buy now pay later refers to a payment model that enables consumers to make purchases upfront and delay payment for those purchases over a specified period. It transforms the process of shopping, enabling individuals to acquire desired products without bearing the full financial burden upfront. As it functions by providing an alternative to traditional credit options while enhancing the shopping experience of individuals, the demand for buy now pay later models is rising in the GCC region.
Market Overview and Forecast
The GCC buy now pay later market size reached USD 184.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,134.6 Million by 2033, exhibiting a growth rate (CAGR) of 22.4% during 2025-2033. The growing online shopping activities among the masses and rising number of individuals who prioritize budgetary control and convenience represent some of the key factors driving the market.
| Market Indicator | Value |
|---|---|
| Market Size (2024) | USD 184.0 Million |
| Market Forecast (2033) | USD 1,134.6 Million |
| Growth Rate (CAGR) | 22.4% |
Fintech Trailblazers: Tabby and Tamara
Both Gulf firms are being celebrated as fintech trailblazers mostly because they found themselves in the right place at the right time. Have Tabby and Tamara cracked the buy now, pay later code in the GCC? Tamara is only 15 months old, yet 2 million customers joined the platform and it has processed around SAR 1 billion of GMV across 2,000 merchants in Saudi Arabia and the United Arab Emirates. Tabby works with more than 2,000 partners including global brands like Adidas, IKEA, SHEIN, VogaCloset and regional retail groups like Chalhoub Group, Al Futtaim Group, Landmark Group, and Apparel Group.
Consumer Trends and Insights
Among millennials, the payment method is fast replacing credit cards as a more convenient and transparent way to transact. It offers flexibility and convenience, enabling consumers to acquire goods and services without immediate full payment. The market report identifies several key segments:
- Channel: Online, Point of Sale (POS)
- Organization Size: Large Enterprises, Small and Medium Enterprises
- Purchase Categories: Small Ticket Items (Up to US$ 300), Mid Ticket Items (US$ 300 - US$ 1000), and Higher Prime Items (Above US$ 1000)
Initially, when the business launched, people assumed consumers would use BNPL to pay for furniture or mobile phones. But what we are seeing is that the average ticket is quite low at AED 500. This is higher than your typical e-commerce basket which is around AED 350, but lower than expectations. When we see customers starting to spread their payments for dresses or shoes, that is indicative that people are seeing this as a convenient way of buying.
Strategic Partnerships and Regional Expansion
Tabby teams up with Majid Al Futtaim to spread buy-now-pay-later across the GCC. By integrating Tabby’s BNPL services into the Majid Al Futtaim SHARE app through the SHAREPay feature, the shopping experience is now newly revamped. In the first nine months of the Tabby partnership, Majid Al Futtaim processed approximately AED 253m ($69m) in BNPL transactions, surpassing the initial Year 1 budget of AED 100m ($27.2m). This significant increase highlights the strong demand and preference for flexible payment options such as Split in 4 among customers. Notably, 60 per cent of Tabby shoppers purchasing from MAF brands are women.
