LDUN is joining the growing community of Islamic buy-now-pay-later (BNPL) platforms in Saudi Arabia as analysts expect the BNPL sector to grow over 81% this year.
The fintech company confirmed that it has secured a Fatwa from Bahrain-based Shariyah Review Bureau certifying the Shariah compliance of its BNPL offering.
“Regardless of the sector, we came up with LDUN for the purpose of aligning with the vision to support SMEs. LDUN offers the same flexibility and manageability which makes BNPL attractive for individuals and equally appealing to companies as well,” Feras Alhamdan, CEO and founder of LDUN, said.
According to the Q4 2021 BNPL Survey by research firm Research and Markets, BNPL transactions are expected to hit US$636.7 million this year, up 81.2% year-on-year. Compound annual growth rate for the 2022-28 period is projected to reach 42.4%, with BNPL gross merchandise value to reach US$5.3 billion by 2028.
“Over the last few years, the Kingdom of Saudi Arabia has witnessed an increase in the number of operating fintech companies. The regulatory and infrastructure developments have been conducive towards adopting digital services. The BNPL business models have become popular with vendors and end-users – facilitating a convenient and flexible way to purchase expensive items,” shared SRB CEO and Founder Yasser S Dahlawi.
Tabby and Tamara are among the Islamic BNPL start-ups in Saudi Arabia. There are 24 Shariah compliant fintech solutions providers in the Kingdom as at the 26th July 2022, according to the IFN Islamic Fintech Landscape.