Buy Now, Pay Later in the UAE and KSA

Consumer Adoption, Trust Barriers, and Sustainable Growth

February 10, 2026

Introduction

Buy Now, Pay Later (BNPL) has gained global attention as a flexible alternative to traditional credit, but its adoption in the UAE and Saudi Arabia follows a distinctly cautious pattern. While awareness is high, consumers in the region approach BNPL with greater scrutiny, particularly around trust, fees, and financial control.

This article provides a detailed analysis of BNPL adoption, motivations, and concerns in the UAE and KSA, based on recent consumer research.

Study Methodology

This analysis draws on the same mobile-first payments survey conducted among adults aged 18+ in the UAE and Saudi Arabia.

BNPL awareness and recent usage
Comfort with future BNPL usage
Motivations for adoption
Key concerns and trust barriers
Purchase contexts where BNPL is relevant

All figures are derived directly from survey responses.

BNPL Awareness and Adoption Levels

BNPL awareness is strong, but usage remains selective.

45% of consumers report using BNPL in the last six months
35% are aware of BNPL but have not used it
21% have limited or no understanding of BNPL

This gap between awareness and usage signals conditional acceptance, not rejection.

Consumer Comfort with BNPL

Comfort with BNPL is meaningfully lower than with digital wallets, reflecting its closer association with credit and debt.

While many existing users express comfort, a sizable portion of consumers remain hesitant, indicating that BNPL requires higher trust thresholds than everyday payment methods.

Why Consumers Use BNPL

BNPL is used primarily as a financial management tool.

Key motivations

Spreading purchase costs over time
Managing short-term cash flow
Accessing interest-free or low-fee installment options

Lower-ranked motivations include promotions or impulse buying, reinforcing that BNPL is not primarily used for discretionary spending.

Consumer Concerns Are the Primary Constraint

Concerns play a decisive role in limiting BNPL growth.

Risk of overspending or debt accumulation
Hidden fees or late payment charges
Unclear terms and conditions
Impact on credit standing
Sharia compliance concerns
Complexity around refunds and returns

These concerns are voiced by both users and non-users, highlighting the importance of transparent communication and education.

When BNPL Makes Sense to Consumers

BNPL relevance is highly context-dependent.

Purchase value thresholds

BNPL is most attractive for mid-to-high value purchases
It has limited appeal for low-ticket, everyday transactions

Preferred installment structures

2–4 installment plans are strongly preferred
Long-term repayment plans appeal to a minority

Categories with strongest BNPL appeal

Electronics and gadgets
Travel and airlines
Furniture and home-related purchases

Implications for BNPL Providers and Merchants

Sustainable BNPL growth in the UAE and KSA depends on:

Selective deployment, not universal checkout placement
Clear communication of fees, penalties, and repayment terms
Simple installment structures
Cultural and religious sensitivity

Over-extension risks eroding consumer trust.

Conclusion

BNPL in the UAE and KSA has established a meaningful but inherently limited role within the payments ecosystem. Its future depends on trust, clarity, and relevance, rather than scale alone. Providers that position BNPL as a controlled financial tool—rather than an impulse enabler—will be best positioned for long-term success.