The New Prescription? How 'Buy Now, Pay Later' is Reshaping Health Spending

TORONTO, ON – November 25, 2025 – A new financial report is making waves, not for its analysis of stocks or commodities, but for its focus on a burgeoning payment method that is quietly transforming consumer behaviour. The report details the meteoric rise of the “Buy Now, Pay Later” (BNPL) market in Saudi Arabia, projecting its value to soar to US$2.36 billion by 2030. While this explosive growth is reshaping retail, its most profound impact may be happening in a less expected arena: healthcare and wellness.

This shift from traditional credit towards seamless, interest-free installment plans is more than a simple payment preference. It represents a powerful new tool that could either democratize access to wellness or create a new vector for financial distress, with significant consequences for community health. As these services expand into paying for everything from dental procedures to mental health support, they are forcing a critical conversation about the intersection of financial technology and personal well-being.

The Promise of Access: Paying for Wellness on Your Own Terms

For many, the appeal of BNPL is its simplicity and accessibility. In a country like Saudi Arabia, where credit card penetration hovers around a relatively low 20%, these services provide a vital alternative for managing expenses. This is particularly true for preventative and elective healthcare—services that often fall outside the scope of basic insurance coverage but are critical for long-term health.

Imagine needing urgent dental work, a new pair of glasses, or a series of therapy sessions. For individuals without immediate savings or access to traditional credit, these necessities can be delayed, often leading to worse health outcomes down the line. BNPL platforms offer a solution by breaking down a daunting upfront cost into a series of manageable, interest-free payments. This financial flexibility empowers consumers to seek care when they need it, not just when they can afford the full cost in one lump sum.

The rapid adoption is fueled by a young, tech-savvy population. Millennials and Gen Z, who are often wary of traditional credit card debt, have embraced BNPL as a modern budgeting tool. Furthermore, the interest-free structure aligns perfectly with Islamic finance principles that prohibit charging interest, or riba, making it a culturally and religiously acceptable option for millions. This combination of convenience, accessibility, and cultural resonance has created fertile ground for growth, positioning BNPL as a potential key to unlocking greater access to health and wellness services for a generation that demands more control over their finances.

A High-Stakes Market Fuels Rapid Integration

The race to dominate this lucrative market is fierce, driving innovation and integration at a breakneck pace. The Saudi BNPL landscape is overwhelmingly controlled by two homegrown fintech unicorns, Tamara and Tabby, which together command an estimated 95% of the market. Their soaring valuations are a testament to the sector's explosive potential.

Tamara, the Kingdom's first fintech unicorn, achieved a US$1 billion valuation in late 2023 and has since secured massive financing facilities to expand its lending power. Not to be outdone, Tabby, now headquartered in Riyadh, boasts a staggering US$3.3 billion valuation and is reportedly preparing for a public offering on the Saudi stock exchange. These companies have onboarded tens of thousands of merchants, from global brands like IKEA to local retailers, and serve a combined user base of over 25 million people.

This intense competition means BNPL options are becoming ubiquitous, seamlessly integrated into online checkouts and in-store payment systems. As providers fight for market share, they are aggressively expanding into new sectors, with healthcare and wellness identified as a key growth frontier. The result is that consumers are increasingly being offered the option to split payments for services at clinics, pharmacies, and wellness centers. While this competition drives convenience, it also accelerates the normalization of using installment debt for essential health needs, blurring the line between a budgeting tool and a potential financial pitfall.

The Hidden Cost: Financial Stress as a Health Concern

Beneath the surface of this convenient financial innovation lies a significant risk: the potential for over-indebtedness and its resulting impact on mental health. The very ease of use that makes BNPL so appealing can also encourage impulse spending and lead consumers into a cycle of debt that is difficult to escape. Financial health advocates have voiced growing concern that the services are often marketed as a simple payment method rather than what they are: a form of credit.

One academic study focusing on Saudi university students found that while they enjoyed the flexibility of BNPL, its use negatively impacted their savings and investment habits. The primary concern is that consumers, particularly those with limited financial literacy, may juggle multiple BNPL plans across different providers, losing track of their total debt obligations until it is too late. A 2023 survey noted that a quarter of users were already managing several plans simultaneously.

This financial strain is not just an economic issue; it is a burgeoning public health crisis. “The link between significant debt and mental health issues like anxiety, stress, and depression is well-documented,” notes one financial wellness expert. The pressure of meeting multiple payment deadlines can become a chronic stressor, undermining the very sense of well-being that some of the purchased health services were intended to promote. The risk is that in solving one problem—access to care—BNPL could inadvertently create another by contributing to the silent epidemic of financial anxiety.

A Regulatory Balancing Act

Recognizing both the promise and the peril, Saudi regulators have moved decisively to bring order to the fintech frontier. In late 2023, the Saudi Central Bank (SAMA) implemented a comprehensive regulatory framework for the BNPL industry. The new rules are designed to walk a fine line: fostering innovation while embedding robust consumer protections.

Under the new mandate, all BNPL providers must obtain a license to operate, meet a minimum capital requirement, and adhere to strict guidelines on governance and risk management. Crucially, the regulations directly address the risk of over-indebtedness by setting a cap on the total amount of credit a provider can extend to a single consumer—reportedly around SAR 5,000 (approx. US$1,330). The rules also demand transparency in terms and conditions and place limits on late fees, aiming to shield consumers from predatory practices.

This regulatory oversight marks a critical step in the maturation of the market. By establishing clear guardrails, authorities hope to ensure that BNPL services function as a safe and sustainable tool for financial inclusion, rather than an unregulated system that preys on vulnerability. As similar financial tools continue to gain traction in markets across the globe, including here in Canada, the Saudi experience offers a crucial case study on the complex interplay between financial innovation, consumer wellness, and regulatory responsibility.