Does Tamara Have a Tomorrow Once STC Bank Comes Knocking?
We’re on the brink of a seismic shift in Saudi consumer credit with the arrival of STC Bank.
Saudi Consumer Credit is About to Change
We’re on the brink of a seismic shift in Saudi consumer credit with the arrival of STC Bank. Right now, credit cards own just 10% of a $206 billion electronic payments pie (the U.S sits at around 40%). Consumers haven’t been sold on the plastic pitch. Meanwhile, BNPL (buy now, pay later) players have been partying like it’s 1999, flush with venture cash, surging from a measly 76,000 customers to a jaw-dropping 10 million in two years. But that party’s about to get crashed. Hard.
Because STC Bank’s about to walk in, and they’re not here to join the party—they’re here to run it.
STC’s Unfair Advantage
STC Pay already has a third of all Saudi smartphone users and holds 18% of the KSA mobile wallet market, only second behind the top global brand, Apple Pay. So when STC Bank shows up with a BNPL solution, it can flip a switch and instantly activate millions of existing users. But it's not just BNPL that this big purple pacman will gobble up, it’ll also go after traditional credit card customers. It’s like a double-header where STC gets to play both teams and win twice.
Better Deal: Consumers have become savvy to credit cards and have opted for digital wallets and BNPL instead.
Frictionless Integration: STC’s existing wallet infrastructure means no pesky hurdles—just instant activation for users already hooked on STC Pay.
Data Goldmine: With STC’s telecom and payment data, their credit decisions and approval rates will leave competitors in the dust.
For BNPL Startups, the Grim Reaper Has Arrived
Let’s not sugarcoat it: Tamara and other BNPL upstarts built impressive castles, but their moats can simply be stepped over by the STC giant. Yes, Tamara is big—10 million customers and $110 million in funding sets it apart. But STC Bank isn’t a startup—it’s a fully armed battleship with the brand to match. They have cheaper capital, better data, and don’t need to spend millions on user acquisition; they already own the highways consumers travel every day. The ROI math will always favor STC. Always.
A Land Grab in Plain Sight
Digital payments are heating up in the Kingdom, and STC Bank will be snatching the lion’s share of both credit card and BNPL volume.
Instant access to a third of the country’s smartphones
Banking-level cheap capital
Superior risk assessment via a goldmine of user data
Pre-existing merchant ties
Zero CAC thanks to STC Pay’s installed base
Lock-and-load integration with Saudi’s top mobile wallet
We’re watching the future unfold before our eyes. STC Bank can completely own the market, but it’s their game to lose. The only real question left is how quickly they’ll put everyone else out of business.
The gravitational force of STC Bank is coming, and it will pull every part of the market into its orbit.
Want to know more about fintech in The Kingdom? Let’s chat on LinkedIn.
شكراً على وجودك المميز
-Ralph