eCommerce has transformed with "Buy Now Pay Later" (BNPL) and installment options now essential to online shopping. These allow instant purchases with value paid in easy installments over time. Offered by financial and commercial sectors, they boost sales and ease buyer financial pressure. BNPL spans high‑value and everyday buys, fueling market growth. Full awareness of terms, due dates, and fees avoids delays or penalties. BNPL market grows at ~21% CAGR through 2034.
What Is "Buy Now Pay Later" (BNPL) and How Does It Work?
BNPL is short‑term financing letting buyers complete purchases and receive goods immediately, repaying in set installments. It removes instant financial barriers, encourages flexible buying, often interest‑free if paid on time. Merchants get full invoice value upfront from providers, reducing risk and increasing sales.
BNPL process for customers:
- Select service: choose BNPL at checkout.
- Quick approval: instant check, rarely needing complex banking.
- First payment: often 25% upfront.
- Receive and repay: get product, pay remaining in agreed periods (e.g., 3–4 monthly or biweekly).
Activating Flexible Payment Methods in Your eCommerce Store
Enable BNPL like Tabby or Tamara by integrating with specialized firms. This key step improves UX and conversions.
Steps for merchants:
- Create merchant account: contact BNPL or gateway supporting it.
- Prepare documents: commercial register or freelancer proof (country‑dependent).
- Platform integration: add via app or keys (Secret/Public) in store settings.
- Activate and test: enable in payment options, run test purchase. Tabby serves 15M+ users, 40K+ merchants.
Learn more: UGC sales impact
Top Buy Now Pay Later Companies in Arab Markets
BNPL providers have proliferated in Arab regions, especially Gulf and Levant. Choose based on coverage, limits, and fees.
Company | Main HQ/Strongest Reach | Core Service | Notes on Coverage/Services |
|---|---|---|---|
Tabby | Saudi, UAE, Kuwait | 4 interest‑free payments | Serves 15M+ users, 40K+ merchants across region |
Tamara | Saudi, UAE | Monthly installments | Leading competitor in flexible payments |
Fawry | Egypt | Digital financing + ePayments | BNPL alongside payments for 51M+ Egyptian users |
Postpay | UAE | Flexible installments | Expanding Gulf BNPL options |
How Bank Installment Systems (EMI) Work in Major Stores
Bank EMI differs from fintech BNPL, using customer credit cards via bank‑merchant partnerships.
- Credit card purchase: complete full buy with card at store (online/offline).
- Convert to installments: contact issuing bank or app to split transaction into equal monthly payments (EMI).
- Tenor periods: 3–24 months, per bank‑merchant agreement.
- Interest/fees: some 0% promotions with partners; otherwise monthly interest or flat admin fees.
How Flexible Payments Change Consumer Behavior
Flexible payments fundamentally shift buying patterns, especially among youth and cash‑constrained. Buyers now prefer instant access with spread costs.
Behavior indicators:
- Higher spend/basket size: BNPL users buy 17–50% more per order.
- Impulse buying: eases financial hesitation for quicker decisions.
- Cart abandonment drop: BNPL cuts abandonment significantly.
- Credit card shift: many prefer BNPL without traditional cards; 80%+ transactions debit‑based in some markets.
Also read: Micro‑influencer marketing
Future of Buy Now Pay Later in Regional eCommerce
BNPL will remain eCommerce’s fastest‑growing payment, especially emerging Middle East/North Africa markets. Driven by demand for flexibility and fintech advances.
- Market growth: ~21.2% CAGR globally 2025–2034.
- Sector expansion: beyond retail to B2B/services.
- Bank integration: major institutions partner or adopt BNPL.
- Challenges: credit risk, delinquency require better scoring.
Major Saudi/UAE Stores Offering Installments
BNPL thrives across Saudi/UAE retail:
- Electronics: Jarir, Extra for phones/home appliances.
- Fashion: Namshi, Foot Locker, Shein (select regions), local/global brands.
- Furniture: IKEA (bank partnerships), home specialists.
- Travel: some airlines/agencies for tickets/hotels.
FAQs
Can I use BNPL without a credit card?
Yes, most work with debit cards or direct bank payments; approval via financial check, no traditional credit needed.
Do BNPL companies charge activation/admin fees to customers?
Usually no activation fees at purchase; revenue from merchant fees. Some charge small admin for long tenors or frequent use.
What happens if I miss an installment?
Late payments incur specified penalties. Continued delay freezes account, blocks new buys, escalates fees; may report to credit bureaus affecting score.
Conclusion
✅ BNPL boosts average order value 50–200% vs. traditional payment.
✅ Tabby/Tamara serve 15M+ users, 40K+ merchants regionally.
✅ BNPL grows ~21.2% CAGR globally 2025–2034.
✅ Reduces cart abandonment up to 30–35% without flexible options.
✅ 80%+ transactions often debit‑based, no credit card required.
