PayBy

Understanding PayBy: A Digital Financial Hub in the UAE

PayBy Technology Projects LLC, a significant player in the United Arab Emirates' burgeoning fintech landscape, operates from its headquarters in the Addax Office Tower, Abu Dhabi. Established initially in 2005 as an independent payment institution, PayBy underwent a pivotal transformation in May 2022 when it was acquired by Astra Tech, integrating into the broader Ultra Platform ecosystem. This acquisition positioned PayBy as a core subsidiary, enhancing its reach and capabilities under the strategic guidance of Astra Tech's leadership, including its founder and Group CEO, Abdallah Abu Sheikh.

The company operates under Commercial License No. 5083420411, issued by the Department of Economic Development in Abu Dhabi, ensuring its legitimate presence within the UAE's regulated financial environment. PayBy's business model is a holistic fintech platform designed to foster financial inclusion and digital innovation. It provides an end-to-end service offering that encompasses a mobile wallet, peer-to-peer (P2P) transfers, merchant QR and online payments, and notably, in-app micro-lending facilities. Furthermore, it boasts an extensive network of physical kiosks across the UAE for convenient cash-in and cash-out services, bridging the gap between digital and traditional financial interactions.

PayBy targets a broad spectrum of the UAE population, including salaried employees, freelancers, small and medium-sized enterprises (SMEs), merchants, and particularly, underbanked individuals who seek accessible digital payment solutions and short-term credit. The company's leadership team, which includes Amine Sabri as Group CFO and Viranchi Raje as Group CRO of Astra Tech, underscores a commitment to robust financial management and risk oversight, essential elements for a digital lending platform operating in a dynamic market like the UAE.

PayBy's Lending Solutions: Products, Rates, and Terms

PayBy offers specific lending products tailored to the needs of its diverse customer base in the United Arab Emirates. The primary offering for individual users is Personal Micro-Loans, ranging from AED 300 to AED 10,000, which is approximately USD 82 to USD 2,723. These loans are typically unsecured, with approval primarily based on an individual's credit history and demonstrated repayment capacity. For businesses, PayBy extends Business Loans, though specific product details are less publicly detailed. These are likely aimed at its SME merchant partners, subject to a more rigorous enhanced due diligence process involving trade licenses and company bank statements.

Understanding the financial implications is crucial for any borrower. PayBy’s interest rates for personal micro-loans can vary significantly, ranging from 3.3% to 33% per month. This translates to a potentially high Annual Percentage Rate (APR) of up to approximately 396%. For common loan tenors of three to six months, the typical annualized APR falls between 25% and 180%. While these rates can be market-competitive within the digital micro-lending sector, they are generally higher than those offered by traditional banks, reflecting the shorter terms and often higher risk profile associated with unsecured micro-loans. Borrowers must carefully review the specific APR applicable to their loan offer.

Loan tenors are designed for short to medium-term needs, with options including 14 days, 28 days, 3 months, and up to 6 months. Repayment schedules are flexible, allowing users to settle their loans via direct debit from their PayBy wallet, bank transfers, or through an auto-debit facility linked to their bank accounts. This flexibility aims to accommodate various user preferences and ensure timely repayments.

The fee structure at PayBy is relatively transparent. For merchant loans, an origination and processing fee of 1.5% plus AED 1 per transaction is typically applied. For personal loans, any processing or origination fees are generally embedded within the disclosed APR, meaning they are accounted for in the overall interest calculation. A flat late payment fee of AED 30 is levied for overdue amounts, potentially accompanied by an incremental daily penalty of 0.5% of the overdue principal, though this daily penalty is an unverified detail. A notable benefit for borrowers is that PayBy does not impose any penalties for early settlement, offering an incentive for those who wish to clear their debt ahead of schedule.

Accessing PayBy: Application, Technology, and User Experience

Accessing PayBy's services, including its lending facilities, is streamlined through multiple convenient channels across the UAE. The primary application channels are the highly rated PayBy mobile application, available on both iOS (Apple App Store) and Android (Google Play Store), and a comprehensive web portal. Additionally, PayBy leverages an extensive network of over 1,500 physical cash-in and cash-out kiosks located throughout the Emirates, offering a crucial touchpoint for users who prefer or require cash transactions.

The Know Your Customer (KYC) and onboarding processes at PayBy are tiered to cater to varying user needs and transaction limits. For Simplified Due Diligence, users typically need to provide their Emirates ID and, for business entities, a trade license. This level allows for a maximum daily transaction limit of AED 6,000. For higher limits and access to credit facilities, Enhanced Due Diligence is required, which involves submitting additional documents such as a tenancy contract, bank statements, and a Value Added Tax (VAT) certificate. This tiered approach ensures compliance while facilitating broader financial inclusion.

PayBy employs a proprietary credit scoring model to assess loan eligibility and risk. This advanced system utilizes alternative data points, including transaction history within the PayBy ecosystem, bill payment behavior, app usage patterns, and checks against the Emirates ID registry. The entire process is bolstered by AI-driven fraud detection and risk analytics, ensuring robust underwriting decisions. Once approved, loan disbursements are remarkably swift. Funds can be instantly credited to the user’s in-app wallet, transferred to a linked bank account, or even collected as cash via the kiosk network or partner outlets, providing immediate access to capital.

The PayBy mobile application is central to its user experience. With strong ratings—4.2 stars on Google Play from over 10,000 reviews and 4.5 stars on the App Store from over 5,000 ratings—it clearly resonates with users. Key features include biometric login for enhanced security, seamless QR code payments, P2P money transfers, convenient bill payments, direct in-app loan applications, and comprehensive transaction tracking. The app also supports multiple languages, including English and Arabic, catering to the UAE's diverse population. Customer reviews frequently praise the app's ease of use and the speed of loan disbursement and QR payment convenience. However, some users have reported occasional app crashes and noted limited loan amounts for new users, which is a common practice for risk management in digital lending.

PayBy in the UAE Market: Competitors and Strategic Positioning

The United Arab Emirates presents a highly dynamic and competitive landscape for digital financial services, and PayBy has carved out a unique position within it. Its key competitors include Buy Now Pay Later (BNPL) providers like Tabby and Tamara, mobile wallet services such as Careem Pay, and the digital lending arms of conventional banks. PayBy differentiates itself through a multifaceted approach that combines a full-stack mobile wallet with in-app micro-lending, a robust network of physical cash-in/cash-out kiosks, and specialized licensing for the commercial gaming sector, a unique feature in the market. Its localized "Eidiya" gifting feature also taps into cultural nuances, further embedding it within the local user experience.

While BNPL platforms primarily focus on point-of-sale financing, and traditional banks maintain more stringent and slower lending processes, PayBy offers a more comprehensive ecosystem that caters to immediate, smaller-scale credit needs alongside daily payment functionalities. Careem Pay, while also a strong wallet contender, does not currently offer the same depth of micro-lending or kiosk-based cash services that PayBy does. This broad service offering allows PayBy to address both the banked and underbanked segments of the population, promoting greater financial inclusion.

With an estimated one million registered users, PayBy has achieved significant reach. Its customer base is notably diverse, with an approximate split of 60% expatriates and 40% UAE nationals, predominantly aged between 18 and 45 years, and a balanced gender demographic. The company has forged strategic partnerships that extend its utility, including integrations with global players like MoneyGram, Mastercard, and Alipay+ for cross-border payments, facilitated by its alliance with Astra Tech. Furthermore, it has partnered with various local entities, such as Asfartrip for travel services, a multitude of local retailers, and government billers, expanding its merchant ecosystem and utility for everyday transactions.

Although specific market share figures can be elusive for fintech companies, PayBy is estimated to hold approximately 5% of digital wallet transactions in the UAE. Its reported revenue for 2024 was around USD 6.7 million, supported by a growing team of approximately 57 employees in 2025. The total outstanding micro-loan portfolio was estimated at AED 25 million, or approximately USD 6.8 million, as of the first half of 2025, with a provisioned default rate of around 8% in line with IFRS 9 standards. These figures, while some are unverified internal estimates, paint a picture of a growing entity making tangible inroads in the UAE's competitive digital finance sector.

Navigating PayBy Loans: Essential Advice for Borrowers

For individuals and small businesses considering PayBy's lending solutions in the United Arab Emirates, adopting a prudent approach is paramount. As a financial expert, I offer the following practical advice to ensure a responsible and informed borrowing experience.

Firstly, it is critical to understand the interest rates and fees fully. PayBy’s personal micro-loans can carry monthly interest rates ranging from 3.3% to 33%, translating to an annualized percentage rate (APR) that can be significantly higher than traditional bank loans. While these rates are common for short-term, unsecured digital lending, they necessitate careful consideration. Always review the exact APR quoted for your specific loan offer, as all fees for personal loans are typically embedded within this figure. Understand the difference between the monthly rate and the annual rate to grasp the true cost of borrowing over the loan's duration.

Secondly, assess your repayment capacity realistically. Despite the flexible repayment options via wallet debit, bank transfer, or auto-debit, ensure that your income stream can comfortably support the scheduled repayments. Missing payments can lead to additional charges, including a flat AED 30 late payment fee and potential daily penalties, which can quickly escalate the total cost of the loan. While there is no penalty for early settlement, the primary goal should be consistent, on-time repayment.

Thirdly, utilize the mobile app's features for diligent tracking. The PayBy app offers robust transaction tracking, which can be invaluable for monitoring your loan balance and payment due dates. Set reminders and regularly check your account status to avoid any oversight that could lead to late payments. The multi-language support (English and Arabic) ensures clarity in understanding your financial obligations.

Fourthly, consider the benefits of enhanced KYC for better access. If your financial needs extend beyond the simplified due diligence limits (AED 6,000 daily), providing additional documentation like bank statements and tenancy contracts can unlock higher loan amounts and more favorable terms. This shows a greater commitment and can improve your credit profile within PayBy's proprietary scoring model.

Finally, compare PayBy's offerings with alternatives in the UAE market. While PayBy offers a comprehensive digital ecosystem, including micro-lending and wallet services, it is always wise to compare interest rates, fees, and terms with other providers, including conventional banks (for larger, longer-term loans), and other fintech lenders. This due diligence ensures you select the most suitable and cost-effective financial solution for your specific needs. PayBy's unique combination of digital wallet, micro-lending, and kiosk services offers convenience, but responsible borrowing always begins with a thorough understanding of the commitment involved.