BNPL - WORLDEF

Tabby Secures Consumer and SME Finance Licenses in Saudi Arabia, Expanding Beyond BNPL

Saudi fintech unicorn Tabby has obtained consumer finance and SME finance licenses from the Saudi Central Bank (SAMA), enabling the company to offer longer-term financing options for consumers and working capital solutions for businesses. The move marks a significant step in Tabby’s evolution from a buy now, pay later (BNPL) provider into a broader digital financial services platform.

Tabby announced that the new licenses will allow eligible customers in Saudi Arabia to finance purchases exceeding SAR 2,000 ($533), with financing limits reaching up to SAR 50,000 and repayment terms of up to 12 months. The company’s extended financing plans are already available across selected merchant partners, including Noon, IKEA, Almosafer, flynas, Fitness Time, and Almanea.

New Licenses Open Higher-Value Financing Categories

The expanded financing capabilities enable Tabby to move beyond its traditional short-term BNPL model, which primarily covered lower-value retail purchases. The company can now support larger transactions in categories such as education, travel, healthcare, furniture, used vehicles, and short-term accommodation.

The financing products are structured under Shariah-compliant Murabaha agreements, with costs disclosed upfront and fixed throughout the repayment period. According to the company, customers will not face compounding charges or late fees.

The SME finance license also allows Tabby to provide working capital to merchants operating on its platform, particularly small and medium-sized e-commerce businesses that often struggle to access financing through traditional banking channels. By leveraging transaction and merchant data from its ecosystem, Tabby aims to offer more tailored financing solutions and improve credit assessment capabilities.

Tabby currently serves more than 25 million registered users and over 65,000 businesses across the GCC, with Saudi Arabia representing its largest market. The new regulatory approvals align with Saudi Arabia’s Vision 2030 objectives of increasing financial inclusion, promoting fintech innovation, and expanding access to transparent credit solutions for consumers and businesses.

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50% of European Consumers Use BNPL as Usage Rapidly Expands

Half of European consumers adopt BNPL

Buy Now, Pay Later (BNPL) services are now used by 50% of consumers across Europe, according to data published by Ecommerce News Europe.

The report shows that BNPL has moved into the mainstream, with many consumers using these services multiple times per year as part of their regular online shopping behavior.

Adoption differs by market

Despite strong overall uptake, usage varies significantly between countries.

In markets such as Switzerland, BNPL penetration remains lower, with roughly one in four consumers using these services. The gap highlights the influence of local financial habits, credit culture, and regulatory frameworks across Europe.

Flexible payments reshape checkout

The growth of BNPL reflects a broader shift in payment preferences.

Installment-based options often interest-free are increasingly integrated into the checkout experience, offering consumers greater flexibility compared to traditional credit products. As a result, payment methods are playing a more central role in purchase decisions.

Regulatory scrutiny increases

The expansion of BNPL has drawn attention from regulators across the region.

Authorities are assessing the need for stricter consumer protection measures, including improved transparency, clearer terms, and stronger affordability checks. Proposed updates to consumer credit rules are expected to address gaps related to BNPL services.

Merchants respond to demand

For online retailers, BNPL is becoming a standard feature rather than an optional add-on.

Merchants are integrating these solutions to support conversion and align with evolving consumer expectations, while also navigating compliance requirements as regulatory oversight increases.

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Ubuy Launches Installment Shopping in Cross-Border E-Commerce with Tabby Partnership

Ubuy, the cross-border e-commerce platform operating in the Gulf region, has started offering the “buy now, pay later” (BNPL) model to users in the United Arab Emirates and Saudi Arabia through a new integration with the payment technology company Tabby. The new payment option has been activated on both the Ubuy UAE and Ubuy Saudi Arabia platforms.

With this integration, users will be able to purchase millions of international products available on the platform with installment payment options. Under the model offered by Tabby, purchases can be split into up to four installments. While no interest or additional fees are applied in three-installment plans, a small transaction fee may apply for four-installment plans. The payment process also moves very quickly; after selecting the Tabby option on the payment page, users can receive instant approval and complete their purchases, while the remaining payments are automatically scheduled by the system.

BNPL Solutions Are Rapidly Expanding

In recent years, BNPL solutions have been rapidly expanding in the Gulf countries. The increasing preference of young and digitally focused consumers for flexible payment options is encouraging e-commerce platforms to invest more in alternative financing models. According to market research, the BNPL market in the Middle East and North Africa is expected to reach a value of billions of dollars in the coming years.

Ubuy Aims to Expand Its User Base in the Gulf Market

Dhari AlAbdulhadi, the founder and CTO of Ubuy, stated that customer experience is at the center of the company’s growth strategy, noting that the Tabby integration increases users’ financial flexibility and makes international shopping more accessible. The company aims to expand its user base in the Gulf market by combining global product access with regional payment solutions.

Operating across categories such as electronics, fashion, beauty, and home & living, Ubuy enables consumers to access products from different parts of the world quickly and easily through its cross-border e-commerce model with its wide product range.