Two very different markets behind one label
Putting the Gulf and Turkey in the same conversation is useful only if you keep the difference visible. In Saudi Arabia, buy now, pay later is a defined regulated activity: the Saudi Central Bank issued rules for BNPL companies, which set licensing requirements, minimum capital, governance expectations and boundaries on the activity itself, and SAMA has licensed a number of providers including Tabby and Tamara. The consumer proposition is typically a small number of interest-free instalments, with the cost carried on the merchant side. Turkey is different. The instalment habit there is deeply established through bank credit cards, with the number of instalments set by category under the banking regulatory framework, while a BNPL-style product offered by a non-bank must fit inside the rules for lending. Turkish law prohibits payment institutions and electronic money institutions from granting credit themselves, so the credit has to come from a bank or a licensed finance company.
- Treat Gulf BNPL as regulated consumer credit delivered by licensed finance companies.
- Treat Turkish instalments as a card feature shaped by banking regulation, not as a single BNPL brand.
- Expect different contracts, refund rules and dispute routes in each market.
- Check which legal entity in the provider group is licensed to lend in the country you sell into.
How BNPL approval economics differ from cards
On a card, the issuer decides whether to approve a transaction in milliseconds, based on the cardholder's credit line and its own risk models, and the money moves through the card network. The merchant's job is to get the authorisation and avoid the dispute. On BNPL, a separate lender underwrites the customer, often with a soft check that does not affect their credit record, and then either approves a spending limit or declines that specific order. Three things follow. Approval rates depend on the lender's appetite for your customer segment, not on your acquiring setup. The lender, not you, carries the customer's repayment risk, which is the single biggest reason merchants accept the cost. And the decision adds a step to checkout, so the way the option is presented matters as much as the option itself. Merchants usually see higher average order values and better conversion on eligible baskets, but those gains are category-specific rather than universal.
- Ask the provider what share of orders in your category and price band typically get approved.
- Confirm who carries customer non-payment risk, and get that in the merchant agreement.
- Present BNPL as a monthly price rather than only as a logo, because clarity converts better.
- Measure the effect on average order value and on returns separately before judging the channel.
Merchant eligibility: what providers check
BNPL providers are selective, and their criteria are not the same as an acquirer's. Expect questions about your average order value, because very small baskets do not justify the cost, and about your returns rate, because a refunded order has to unwind a repayment schedule. They will look at your category, at where your customers are, at how long you have been trading, and at your refund and cancellation policy as published. Physical goods with a clear delivery cycle are the easiest fit. Digital goods, gift cards, travel that is consumed far in the future, and anything the lender considers hard to reverse are harder. They will also want to know who the merchant entity is and where it is registered, because the lender has its own cross-border rules. Ask early whether your category is accepted, in writing, before your team builds anything.
- Ask which categories the provider accepts and declines before you integrate.
- Prepare your average order value and returns rate, because both drive the commercial terms.
- Make sure your refund policy is published and matches what your systems actually do.
- Confirm whether your merchant entity's country of registration is eligible for the product.
Settlement and refund handling
Settlement is the question merchants most often assume the answer to. Do not. Some products settle the full order value to the merchant shortly after capture, while others settle on a different schedule or net of fees, and the difference changes your cash flow materially. Ask three things: how many days after capture funds become available, whether you receive the full order value or a net amount, and what currency you are settled in. Refunds are where the operational work hides. A refund has to unwind the customer's instalment plan, not just move money back, so a partial refund, a return after the first instalment, or a cancellation after shipment each need to be tested. Establish who tells the customer their plan has changed, how quickly the status updates, and how the adjustment appears on your settlement report. Then test all of it in production before you promote the option.
- Confirm settlement timing, whether it is gross or net, and the settlement currency, in writing.
- Test full refunds, partial refunds and post-shipment cancellations in production before launch.
- Agree who communicates instalment changes to the customer and how fast the status updates.
- Reconcile the instalment plan status against your own order states on a fixed schedule.
Sector restrictions
The categories that attract BNPL and the categories that need it most are not the same set. Fashion, electronics, home goods, beauty and travel are the natural fit, because the basket size justifies instalments and the goods are returnable in a predictable way. Providers restrict or exclude sectors where the value cannot be recovered: digital content delivered instantly, gambling, financial services, anything age-restricted, and products with long fulfilment windows where the customer might still be paying after the experience. In Turkey, the position is stricter still in one respect, because the credit must be provided by a licensed lender, and category-level instalment limits are set by the banking regulator rather than by the merchant or the platform. If your sector sits near an edge, ask the provider to confirm acceptance in writing rather than inferring it from a case study on their website.
- Assume digital content and instant delivery are restricted unless the provider confirms otherwise.
- Check long-fulfilment categories carefully, because instalments can outlast the customer experience.
- In Turkey, confirm which licensed lender sits behind the product and what category limits apply.
- Get sector acceptance in writing rather than reading it from marketing material.
Where the regulation is heading
The direction in both regions is the same: BNPL is being treated as consumer credit rather than as a payments feature. Saudi Arabia licensed the sector, set minimum capital and governance requirements, and has continued to adjust the rules, including the ceiling on outstanding financing per customer and the maximum number of instalments, with collections restricted to electronic channels. Providers there have since broadened into longer regulated financing under additional licences, which tells you where the commercial gravity is. Turkey's framework is moving in the same conceptual direction, with a clear separation between who may accept payments and who may lend, and active supervision of payment and electronic money institutions by the central bank. For merchants the implication is practical: expect more documentation, more explicit disclosure requirements at checkout, and more scrutiny of refund handling. Build the disclosure and refund plumbing properly now rather than retrofitting it.
- Expect disclosure requirements at checkout, including the total cost and the instalment schedule.
- Plan for refund handling that unwinds a regulated credit agreement, not just a payment.
- Watch for providers broadening from short instalments into longer regulated lending products.
- Re-check the rules for your market periodically, because the frameworks are still being adjusted.
Questions merchants ask
Is BNPL available in Turkey the same way it is in Saudi Arabia?
Not really. Saudi BNPL is a licensed consumer finance activity delivered by companies such as Tabby and Tamara. In Turkey, instalments are mostly a bank credit card feature with category limits set by the banking regulator, and a non-bank cannot lend under a payment institution licence. The credit must come from a bank or a licensed finance company.
Do merchants get paid the full order value upfront?
It depends entirely on the product, the country and your contract. Some settle the full value shortly after capture, others settle net of fees or on a different schedule. Ask how many days after capture funds become available, whether the amount is gross or net, and in which currency, then get it in writing.
Who carries the risk if the customer does not pay?
Usually the BNPL lender, which is the main reason merchants accept the cost. But you still carry return and refund risk, and a poorly handled refund creates customer complaints that land on you. Confirm the allocation of non-payment risk explicitly in the merchant agreement rather than assuming it. Read the merchant agreement for the exact allocation, including what happens on a disputed delivery.
How are refunds handled on a BNPL order?
The refund has to unwind the customer's instalment plan, not just return money. Partial refunds, returns after the first instalment and post-shipment cancellations each behave differently. Test all of these in production, agree who informs the customer, and check how the adjustment appears on your settlement report. Assign one owner for reconciliation between your order states and the instalment plan status.
Can I offer BNPL for digital goods or gaming credit?
Often not. Lenders restrict categories where value cannot be recovered if something goes wrong, and instant digital delivery is the hardest case of all because there is nothing to return. Some providers make exceptions for particular structures, such as a subscription with a clear cancellation right. Ask for written confirmation of your specific category before you build anything.
What should I check before adding Tabby or Tamara to my checkout?
Category acceptance, eligibility of your merchant entity's registration country, typical approval rates for your price band, settlement timing and currency, and the full refund flow. Then test the disclosure text at checkout, because regulators in the region increasingly expect the instalment schedule and total cost to be shown clearly. Then run a small live pilot before promoting the option across your whole catalogue.