An old story that is probably a pseudonym is that F. Scott Fitzgerald said to Ernest Hemingway, “Rich people are different from you and me.”

Hemingway replied, “Oh, they have more money.”

This exchange comes to mind due to the popularity of buy now, pay later (BNPL) around the world and its popularity among high-net-worth individuals. Creating a budget and making payments over time seems to have appeal regardless of your income bracket.

middle east unicorn

The Saudi-based BNPL platform is firmly entrenched in the payments industry, as illustrated by the BNPL news. tamara Became the country’s first unicorn. According to the company’s website, the BNPL model turns out to be roughly similar to other models around the world, as payments are split into four equal transactions. Brands associated with this option include: Shane and ikea. Evidence of the digital conduit also remains as consumers complete payment term selections and manage payment plans through the Tamara app.

The company also has locations in the United Arab Emirates and Kuwait.

Saudi Arabia is one of the world’s largest oil producers and, like other countries, has a wide income distribution, similar to Kuwait and the UAE. According to data from international organizations, these countries are relatively wealthy. Saudi ArabiaThe average annual salary is over $27,000.inside United Arab Emirates, the average income is approximately $49,000.in Kuwaitthat amount comes to about $40,000 per year.

These numbers may pale in comparison to, say, the United States. average income Approximately $75,000 per case US Census Bureau data. However, these countries are among the top 30 or so wealthiest countries, and given the aforementioned large retailers, consumers have ready access to disposable income.

The Saudi Central Bank is rules It is the most favorable region for BNPL providers in terms of capital requirements, with more than six BNPL companies operating there, indicating that the path is paving for BNPL to gain a larger foothold.

The growth of BNPL in relatively wealthy countries mirrors trends seen in the United States. ”Credit Accessibility Series: The Broad Impact of BNPL on Consumers and Merchants”, PYMNTS Intelligence and Sezzle According to the collaboration, 16% of all consumers use BNPL, and an additional 12% say they have used BNPL at some point in the past. Higher-income households are more skewed in spending, with 17% of households with annual incomes of $100,000 or more having used or currently using payment options.

A total of more than 28% of high-income individuals have at least some experience with BNPL, slightly higher than the average for the entire sample.

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