KSA POS Lending Market Report, Market Competitors, Market Analysis, Market Future Outlook, Market Trends & Latest Development

KSA Pos Lending Attained Historical Growth with Over 30,000 Retailers Onboard
The Kingdom of Saudi Arabia (KSA) is witnessing a significant evolution of its Point of Sale (POS) lending market in KSA. The growth of this market is being driven by the increasing number of e-commerce consumers and online payments. POS lending market have become a continent and accessible for shoppers to finance their buys, and it is growing fast and changing all the time in Saudi Arabia. Furthermore, as government initiatives continues to promote financial inclusion and economic diversification, the POS lending market offers novel opportunities for businesses and consumers to engage in the burgeoning digital economy.

KSA POS Lending Market Analysis
• Increasing consumers demand for faster and more secure payment options has surged contactless payments to 96% as of 2024 from just 4% in 2017. Customers are relying more and more on electronic wallets and Near Field Communication (NFC)-enabled gadgets to complete their purchases.
• Covid-19 Pandemic was impetus for growing e-commerce and increased demand for "Buy Now, Pay Later" along with overall digital lending participation in payments ecosystem. Post-pandemic, consumers shopping on the internet in Saudi Arabia increased by 40% year-on-year growth as of 2024.
• The expansion of retail spaces has provided an ideal environment for POS lending services to grow. More than 90% of retail trade are occurring offline in Kingdom of Saudi Arabia, creating demand for flexible payment solutions at physical location.

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KSA POS Lending Market Ecosystem
The Saudi Arabia's point-of-sale (POS) lending market is highly fragmented with nearly 20 active players which are mix of traditional banks and emerging fintech companies. Leading banks including Al Rajhi Bank, Saudi National Bank (SNB), and SABB are offering comprehensive POS lending solutions which are integrated with traditional banking services. Furthermore, Major fintech players like Tamara and Tabby are capturing the market share by leveraging digital platforms and user friendly BNPL (Buy Now, Pay Later) options. Tamara serves over 10 million users and have partnered with more than 30,000 merchants, including big brands like IKEA, and SHEIN achieving 120% year-on-year growth as of 2024. Tabby on the other hand has secured $100 million in funding, achieving $1.5 billion valuation and becoming first fintech unicorn in the MENA region. In addition, several international players such as Visa, Mastercard and European fintech are also vying for the lending opportunity in KSA. The players are focusing on strategic collaboration, acquisition, and new launch to gain more market share and profitability.

Rising Cyber Threats to POS Terminals in KSA
The Kingdom of Saudi Arabia POS lending market is experiencing a growing danger from cyber threats. The shift towards digital transactions puts the country at risk of cybercriminal activities. In 2024, retail sector faced these threats which accounted for 22.89% of dark web activity, making the industry most targeted for cyber threats. Common threats like data breaches, and skimming attempts, putting logs of sensitive information of consumers and merchants, highlighting the potential need for a stronger response to cyber-attacks. In 2024, data shows that cybercrime attacked more than 70% of KSA organizations.

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Future Outlook
The KSA POS lending market is set for a remarkable growth, fuelled by increasing demand for digital payments, rapid evolution of retail sector, and rising demand of e-commerce. The market is expected to cross SAR 180 Bn by 2029. Increased disposable income and economic expansion are expected to drive consumer spending, leading to increased demand for POS lending services. Additionally, government initiatives like Vision 2030 will also shape the financial landscape. This initiative aims to increase contribution of small and medium enterprise (SMEs) to GDP from 20% to 35% by 2030. The financial sector development program aims for a cashless transaction to 70% by 2025, creating growth opportunities for POS lending. Moreover, the partnership of competitors with major retail players like IKEA, Amazon, and Carrefour further expand the reach and adoption of POS lending.

Consultant at TraceData Research In their latest publication "KSA POS Lending Market Outlook to 2029: By end user (Fashion, Furniture, Electronics, DIY, Travel, Others), By lending channels (Online, Offline), and By lender type (Banks, Finance Companies)" believe that to capture market businesses should focus on expanding their reach to SMEs, strengthen cybersecurity, and focus on targeted BNPL (Buy Now, Pay Later) solutions.

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KSA POS Lending Market Segmentation
By Market Structure:
• Private Finance Companies
• Traditional Banks
• BNPL Companies

By Loan Size:
• < SAR 1,000
• SAR 1,000 - 5,000
• SAR 5,000 - 10,000
• SAR 10,000
• Online
• Offline

By Mode of Lending:
By Retail Segment:
• Fashion and Apparel
• Electronics and Appliances
• Furniture and Home Goods
• Healthcare Services
• Travel and Leisure
• Education

Check our Other POS Lending Market Data Here- https://www.tracedataresearch.com/industries/pos-lending-industry-reports

By Age of Consumer:
• 18-24
• 25-34
• 35-44
• 45-54
• 55+

By Region:
• Riyadh
• Eastern Province
• Makkah
• Central
• Western

Players Mentioned in the Report:
• Tamara
• Tabby
• Lendo
• Mada Pay
• STC Pay
• ValU
• Cashew Payments
• Postpay
• Buy Now, Pay Later (BNPL) by Al Rajhi Bank
• Saudi Digital Payments Company (STC Pay)

Key Target Audience:
• FinTech Companies
• Traditional Banks
• Retailers
• Regulatory Bodies (e.g., Saudi Central Bank - SAMA)
• Research and Development Institutions

Time Period:
• Historical Period: 2018-2023
• Base Year: 2024
• Forecast Period: 2024-2029

FAQ's
01 What is the potential for the KSA POS Lending Market?
The KSA POS lending market is poised for substantial growth, reaching a valuation of SAR 5 Billion in 2023. This growth is driven by factors such as increasing consumer demand for flexible payment solutions, the rise of e-commerce, and the expansion of the FinTech ecosystem. The market's potential is further bolstered by the increasing adoption of buy-now-pay-later (BNPL) services and government support for financial technology under Vision 2030.

02 Who are the Key Players in the KSA POS Lending Market?
The KSA POS Lending Market features several key players, including Tamara, Tabby, Spotii, and Cashew. These companies dominate the market due to their robust technological platforms, wide-reaching retail partnerships, and strong brand presence in the market. Other notable participants include traditional banks like Riyad Bank and Al Rajhi Bank, which are increasingly entering the POS lending space.

03 What are the Growth Drivers for the KSA POS Lending Market?
The primary growth drivers include the increasing demand for alternative payment solutions, particularly BNPL services, which allow consumers to manage expenses more flexibly. Additionally, the rapid growth of e-commerce, supported by digital transformation initiatives, is boosting the adoption of POS lending across various retail segments. Government reforms to encourage FinTech innovation and the rising consumer preference for cashless transactions further contribute to the growth of the KSA POS Lending Market.

04 What are the Challenges in the KSA POS Lending Market?
The KSA POS Lending Market faces several challenges, including risks related to consumer creditworthiness and default rates. Regulatory challenges, particularly in relation to data protection and financial transparency, can also impact the operations of POS lenders. Furthermore, small, and medium-sized retailers may face difficulties in integrating POS financing solutions into their existing systems, limiting the widespread adoption of these services.

Explore Our Other Related Reports on Finance Market by Trace Data.

KSA Lending Market- https://www.tracedataresearch.com/industry-report/ksa-lending-market

UAE POS lending market - https://www.tracedataresearch.com/industry-report/uae-pos-lending-market

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