The BNPL (Buy Now, Pay Later) market in the Middle East is witnessing rapid growth, and a new strategic partnership between Checkout.com and Tabby is set to further accelerate its adoption in the UAE and Saudi Arabia. Checkout.com, a global digital payments provider, has integrated Tabby’s BNPL solutions into its platform, enabling merchants to offer consumers flexible, interest-free installment payment options. This collaboration aims to enhance conversion rates, increase average order values, and improve the overall shopping experience. According to Checkout.com’s Digital Commerce Report, BNPL adoption in the Middle East surged by 62% over the past year. With the region’s online shopping activity increasing by 80% since 2020, the demand for alternative payment methods continues to rise. By leveraging Checkout.com’s advanced payment processing technology and Tabby’s popular BNPL services, this partnership is expected to significantly impact the e-commerce landscape, empowering businesses and consumers alike.
Understanding Checkout.com and Tabby’s Business Models
Checkout.com’s Business Model
Checkout.com operates as a global digital payment processing company, providing merchants with high-performance, secure, and scalable payment solutions. The company enables seamless online transactions, supporting multiple payment methods, including credit and debit cards, digital wallets, and now BNPL solutions. Its revenue model is primarily transaction-based, earning a fee for each payment processed.
Tabby’s BNPL Model
Tabby is a leading BNPL provider in the Middle East, offering consumers interest-free installment options at checkout. It allows shoppers to split payments into manageable installments, increasing affordability and boosting merchant sales. Tabby earns revenue through merchant fees and partnerships with retailers.
Founders and Background
- Checkout.com was founded in 2012 by Guillaume Pousaz, a Swiss entrepreneur with extensive experience in fintech and online payments.
- Tabby was founded in 2019 by Hosam Arab, a former co-founder of Namshi, with a vision to revolutionize Middle Eastern e-commerce by offering flexible payment solutions.
The Impact of BNPL Growth in the Middle East
BNPL Adoption Trends
According to Checkout.com’s Digital Commerce Report, BNPL adoption rates in the UAE and Saudi Arabia reached 39% and 42% respectively in the past year. This reflects a growing preference for flexible payment options among consumers.
E-commerce Growth and BNPL Demand
Online shopping in the region has surged by 80% since 2020, driven by digital transformation and consumer demand for convenient payment methods. BNPL solutions, like those offered by Tabby, provide financial flexibility, leading to higher sales and customer retention.
Merchant Benefits of BNPL Integration
By integrating BNPL services, merchants experience increased conversion rates, higher average order values, and enhanced customer loyalty. Checkout.com’s partnership with Tabby allows businesses to tap into these advantages seamlessly.
How Checkout.com and Tabby are Reshaping the Payment Landscape
Seamless Integration for Merchants
The partnership enables merchants using Checkout.com’s payment platform to easily activate Tabby’s BNPL services, eliminating the need for separate integrations.
Enhancing Consumer Payment Experience
With interest-free installment options, shoppers enjoy greater financial flexibility, leading to improved satisfaction and increased repeat purchases.
Expanding BNPL Accessibility
Checkout.com’s extensive merchant network combined with Tabby’s growing user base of over 15 million high-intent shoppers ensures wider accessibility to BNPL solutions across the Middle East.
Industry Insights and Future BNPL Trends
Regulatory Developments
Governments in the UAE and Saudi Arabia are increasingly monitoring the BNPL sector, ensuring consumer protection while fostering financial inclusion.
Competition in the BNPL Space
Other players, such as Tamara and Postpay, are also expanding in the region, leading to greater competition and innovation within the sector.
The Future of BNPL in the Middle East
With sustained e-commerce growth and increasing demand for flexible payment solutions, BNPL is poised to become a dominant payment method in the region.
Learning for Startups and Entrepreneurs
Identifying Market Gaps
The rapid growth of BNPL highlights the importance of identifying and addressing market needs in fintech and digital commerce.
Building Strategic Partnerships
Successful collaborations, such as Checkout.com and Tabby’s, showcase how fintech startups can scale quickly through strong partnerships.
Leveraging Consumer Trends
Startups should focus on consumer behavior trends to develop innovative financial solutions that enhance user experience and drive adoption.
About The Startups News
At The Startups News, we provide in-depth coverage of fintech innovations and startup growth strategies. As the BNPL sector continues to evolve, we remain committed to delivering insightful updates on emerging trends, disruptive technologies, and key industry players shaping the future of payments.
