GCC Buy Now Pay Later Market Analysis: FinTech Innovation, Demand Trends & Competitive Landscape

According to IMARC Group's latest data, The GCC buy now pay later market size was valued at USD 225.2 Million in 2025. Looking forward, IMARC Group estimates the market to reach USD 1,278.6 Million by 2034, exhibiting strong growth from 2026-2034. Saudi Arabia and the UAE currently dominate the market, collectively accounting for the majority of regional BNPL transactions.

GCC Buy Now Pay Later Market Trends:

Expansion Beyond E-Commerce into Offline Retail and Services

BNPL adoption is rapidly extending from online checkouts to physical retail environments through QR-based terminals and mobile app integrations. Tabby has partnered with major mall operators and electronics chains across the UAE, enabling in-store installment payments without requiring hardware upgrades. Healthcare providers now offer BNPL for elective procedures and wellness programs, with zero-interest plans ranging from 6 to 60 months making premium services accessible. Arabian Automobiles partnered with Spotii to launch the region's first automotive BNPL service, allowing consumers to finance vehicle purchases through installments. Airlines like Flynas integrated Tabby for ticket payments, while food delivery super-apps incorporated pay-in-four options, demonstrating BNPL's versatility across service categories and transaction sizes.

Strategic Partnerships and Banking Sector Integration

Traditional financial institutions are entering the BNPL space through partnerships and white-label solutions, blurring lines between fintech and banking. Emirates NBD and First Abu Dhabi Bank have embedded installment features within card products and mobile banking journeys, competing directly with standalone BNPL providers. Spotii partnered with Abu Dhabi Islamic Bank to integrate flexible payment options into existing banking services, leveraging established customer bases. Payment gateways like Checkout.com, Adyen, and Paymob now embed BNPL within merchant payment stacks, simplifying integration and reducing reliance on individual provider relationships.

Market Consolidation and IPO Preparations

The GCC BNPL landscape is shifting from growth-at-all-costs expansion toward profitability-focused operations and public market preparation. Both Tabby and Tamara filed preliminary IPO documentation in 2025, with Tabby choosing the Saudi Exchange (Tadawul) for its primary listing after relocating headquarters to Riyadh. Tabby achieved a $4.5 billion valuation in October 2025 through a secondary sale, up from $3.3 billion following its $160 million Series E in February 2025.

GCC Buy Now Pay Later Market Segmentation:

Channel Insights:

• Online
• Point of Sale (POS)

Organization Size Insights:

• Large Enterprises
• Small and Medium Enterprises

End Use Insights:

• Consumer Electronics
• Fashion and Garment
• Healthcare
• Leisure and Entertainment
• Retail
• Others

Purchase Insights:

• Small Ticket Items (Up to US$ 300)
• Mid Ticket Items (US$ 300 - US$ 1000)
• Higher Prime Items (Above US$ 1000)

Country Insights:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman

Recent News and Developments in GCC Buy Now Pay Later Market

• September 2025: Tamara secured a record $2.4 billion Sharia-compliant asset-backed facility led by Goldman Sachs, Citi, and Apollo Global Management, refinancing and expanding a prior $500 million facility to support expansion into new credit and payment products across its 87,000 business partners and 20 million customer base.
• October 2025: Tamara received a restricted finance license from the Central Bank of the UAE (CBUAE), enabling the company to expand operations and offer enhanced payment solutions to customers and merchants throughout the UAE market with regulatory oversight and consumer protection.
• March 2025: Checkout.com partnered with Tabby to expand BNPL adoption across Saudi merchants, with the collaboration enabling Checkout.com's extensive merchant network to offer Tabby's installment solutions and significantly expanding distribution reach throughout the kingdom.

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