Residing in Dubai offers an array of advantages, primarily attributed to its exceptionally high quality of life. Nevertheless, maintaining and sustaining a comfortable lifestyle in this vibrant city often necessitates making substantial investments in items such as smartphones, televisions, and furniture, among others. However, the price tags on these high-end purchases can be daunting for many residents, particularly when they have to manage various essential financial commitments like electricity bills and rent.
Recognizing this financial challenge, there has been a significant upsurge in the popularity of split payment platforms in Dubai. These innovative solutions have emerged as a lifeline for residents seeking to enhance their living standards without having to drain their bank accounts or resort to high-interest loans. These platforms empower customers to acquire the items they desire immediately and spread the cost over manageable installments, all while avoiding the burden of interest charges.
The emergence of such split payment platforms came into sharper focus during the COVID-19 era, which accelerated the shift towards online shopping and digital payments. This trend has since become an integral part of daily life in Dubai, with residents increasingly embracing the convenience and flexibility offered by these platforms. In essence, they have become a bridge between aspirations for a higher quality of life and the financial realities of the city, allowing individuals to strike a balance between fulfilling their desires and fulfilling their financial responsibilities.
The Fintech Trailblazer of Dubai!
Tabby has swiftly risen to become one of the region’s leading Buy Now, Pay Later (BNPL) services. Its journey began in February 2020, offering online customers alternative financing solutions, particularly catering to those unable to make immediate payments and seeking alternative payment methods beyond cash. Co-founder Hosam Arab astutely observed the multitude of challenges faced by retailers across different markets, where they were required to provide upfront capital while remaining uncertain about customers’ willingness to pay.
Tabby offers a superior alternative by implementing a system that operates on interest-free online installments rather than the traditional cash-on-delivery method. Recognizing the shift of customers from in-person shopping to the convenience of online shopping, as well as the transition from cash payments to various digital payment methods, Tabby adeptly seized this opportunity. These shifts began to take shape during the COVID-19 era and have since become ingrained in people’s habits.
Tabby’s business model is founded on a revenue-sharing framework, where the app charges merchants a commission for each transaction conducted through its platform.
At checkout, the platform provides direct access, allowing customers to initiate payments with a mere 25 percent of the total transaction value.
Tabby boasts a user base of over 30,000 prominent brands, including household names such as SHEIN, Amazon, Adidas, IKEA, H&M, Samsung, and Noon. These brands utilize Tabby’s services to provide flexible payment options to their customers, both online and in physical stores.
Dubai’s latest sensation in the Buy Now, Pay Later (BNPL) realm is Tamara. This platform was established in September 2020 by a trio of visionary founders: Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain, who launched the company in Riyadh, Saudi Arabia.
Abdulmajeed Alsukhan keenly observed the global popularity of BNPL services and recognized their potential to revolutionize the MENA region. Tamara emerged as a solution to bridge the gap for customers who couldn’t afford to make upfront payments for their desired items, thus making it a game changer in the market.
Tamara’s revenue model is based on collecting a percentage of the product price from partnering stores, rather than charging customers. Through Tamara, stores not only acquire new customers but also have the opportunity to cultivate repeat business, thanks to the added flexibility in payment options offered to their clientele.
From KSA to the world!
Tamara, driven by a steadfast commitment to customer satisfaction, has experienced remarkable growth not only in the Middle East but also on a global scale. The company now boasts a workforce of over 320 employees spread across key locations including Saudi Arabia, the UAE, Egypt, Germany, and Vietnam.
In terms of its user base, Tamara has achieved a staggering milestone, with more than 8 million users worldwide. Moreover, the platform has formed partnerships with over 20,000 prominent brands, including industry leaders such as Namshi, Guess, Swarovski, Farfetch, LG, and Anghami.
Together with Tabby, Tamara stands at the forefront of the Buy Now, Pay Later (BNPL) revolution in Dubai, reshaping the way customers manage their expenses. Their impressive trajectory over just a few years underscores the transformative power of this financial innovation. Joining this revolution promises an evolving and increasingly advantageous financial landscape.
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