Tamara, the Saudi Arabian buy now, pay later (BNPL) start-up, has announced that it is expanding its lending capacity to meet the growing demand for its service.
Tamara was founded in 2018 and quickly gained popularity in the Kingdom for its innovative approach to financing. BNPL, also known as point-of-sale financing, allows consumers to make purchases on credit and pay them off in installments over time.
Tamara’s expansion plan includes a significant investment in technology and infrastructure. The company plans to enhance its underwriting capabilities, enabling it to assess more loan applications and increase the overall lending capacity.
Additionally, Tamara is expanding its network of merchants and retailers, providing access to a wider selection of products and services for customers. The company aims to establish partnerships with leading e-commerce platforms and major retailers to provide a seamless shopping experience for customers.
The expanded lending capacity from Tamara will benefit both customers and small businesses. Customers will have access to a larger range of financing options, allowing them to make larger purchases or increase the cost of their purchases over time. This flexibility can be particularly beneficial for individuals and families with limited financial resources.
For small businesses, partnering with Tamara can provide an additional revenue stream. By offering BNPL options, businesses can attract more customers and increase sales. Tamara’s technology-driven lending platform streamlines the approval process, making it easier for small businesses to access financing.
The expansion of Tamara’s lending capacity aligns with the Kingdom’s efforts to promote financial inclusion and support the growth of innovative financial solutions. Saudi Arabia has seen a significant increase in the adoption of BNPL in recent years, driven by the rising purchasing power of young consumers and the need for alternative lending options.
The Saudi Arabian Monetary Authority (SAMA), the country’s central bank, has recognized the potential of BNPL and has put in place regulations to ensure the responsible growth of the industry. SAMA closely monitors the financial stability and consumer protection aspects of BNPL providers, ensuring that consumers are protected, and lenders adhere to responsible lending practices.
Tamara’s expansion of its lending capacity is a significant milestone for the Saudi Arabian BNPL industry. The company’s commitment to innovation and customer centricity is evident in its plans to expand its underwriting capabilities, merchant network, and overall lending capacity. This expansion will not only benefit customers but also support the growth of small businesses in the Kingdom.