BNPL start-ups tackle credit conundrum in Gulf countries

BNPL start-ups tackle credit conundrum in Gulf countries

DUBAI – Financial technology start-ups in Saudi Arabia and the United Arab Emirates offering online short-term credit say they are enjoying exponential growth as the coronavirus pandemic drives a shift in consumer spending online.

Digital buy now, pay later (BNPL) purchasing is relatively new to the region where consumers have traditionally been sceptical of such schemes.

But Saudi Arabian-based Tamara and UAE's Spotii, Tabby and Postpay all say the take-up has far exceeded initial expectations. And investors are paying attention. Tamara last month raised $110 million in debt and equity, a large amount for an early stage Middle East start-up.