In the rapidly evolving digital economy of the United Arab Emirates, innovative financial solutions are reshaping how consumers manage their purchases. Among these, Buy Now, Pay Later (BNPL) platforms have gained significant traction, with Tabby FZ-LLC leading the charge. Founded in 2019, Tabby has swiftly positioned itself as the preeminent BNPL provider in the region, offering flexible, interest-free payment options that empower millions of users across the UAE and beyond.
Tabby FZ-LLC: An Overview of the UAE's Leading BNPL Innovator
Tabby FZ-LLC, a private limited company registered in Dubai, United Arab Emirates, began its journey in 2019. Headquartered in In5 Tech, Dubai Internet City, it quickly established a robust presence, driven by a vision to make shopping more accessible and affordable. The company's ownership primarily comprises its visionary founding team and significant institutional investors, including Wellington Management and Blue Pool Capital, underscoring strong financial backing.
The core of Tabby's business model revolves around its digital BNPL platform. This platform enables consumers to split their purchases into four interest-free installments or, for select merchants, extend payments over up to twelve monthly periods. This flexibility caters primarily to the tech-savvy residents and nationals of the UAE and Kingdom of Saudi Arabia, while simultaneously offering e-commerce merchants a powerful tool to enhance conversion rates and increase average order values.
Leadership at Tabby is robust, steered by Co-Founder and CEO Hosam Arab, who previously served as CEO of Namshi. He is supported by a high-caliber management team including Co-Founder and COO Daniil Barkalov, CTO Alexander Shchepetilnikov, CMO Jugal Paryani, CSO Litesh Lalchandani, CPO Andrey Kazarinov, and Chief Risk Officer Valeriya Allakhverdiyeva. This executive team has been instrumental in guiding Tabby to a valuation of 3.3 billion dollars, cementing its status as a fintech unicorn in the Middle East and North Africa region.
Financial Offerings: Products, Terms, and Fees
Tabby FZ-LLC offers a suite of consumer-centric financial products designed for flexibility and ease of use:
- Buy Now, Pay Later (BNPL): This flagship product allows consumers to divide their purchase into four equal, interest-free installments, typically paid over a three-month period.
- Installment Plans: For larger purchases or specific merchant partnerships, Tabby provides extended installment plans, allowing payments to be spread over up to twelve monthly periods. The specific terms and availability depend on the individual merchant agreement.
- Pay Later: This option allows the full purchase amount to be billed on the consumer's next monthly statement, offering a short-term deferral of payment.
- Pay In Full: A straightforward one-time deferred payment option for immediate needs.
Regarding loan amounts, Tabby accommodates a wide range of purchases. The minimum purchase value eligible for Tabby's services is AED 200 (approximately 54 US dollars), making it accessible for everyday shopping. The maximum credit line offered can go up to AED 7,000 (approximately 1,907 US dollars), providing substantial purchasing power for larger items.
A significant advantage of Tabby's BNPL installment plans is their interest-free nature, resulting in a 0% Annual Percentage Rate (APR) for on-time payments. This commitment to interest-free financing resonates strongly with the financial principles prevalent in the UAE.
Regarding fees, Tabby previously had a tiered late fee structure for overdue payments. However, in a pivotal move in December 2023, Tabby announced the cessation of late fees. This strategic decision was made to align its services more closely with Shariah-compliant financial practices, further enhancing its appeal and ethical standing within the UAE market. This means that as long as payments are made on time, consumers incur no origination, processing, or late fees. For specific requests, such as extending a due date, any associated fee would be clearly disclosed at the point of request.
All Tabby's consumer credit offerings are unsecured, meaning no collateral is required from the borrower, simplifying the access to credit.
Applying and Experiencing Tabby: Process, App, and Support
Accessing Tabby's services is designed to be seamless, primarily through its mobile application or website, as well as integrated checkout options with partner merchants.
The application process begins with signing up via the mobile app (available on both iOS and Android) or the tabby.ai website. Account registration requires a valid mobile number, email address, proof of UAE residency, and a linked debit or credit card for repayments. Tabby employs a sophisticated, data-driven credit assessment model that leverages transaction history, machine learning, and data from the Al Etihad Credit Bureau, allowing for instant approval decisions in many cases.
Funds are not disbursed directly to the consumer. Instead, once a purchase is approved, Tabby remits the full purchase amount directly to the merchant at the time of checkout. Consumers then repay Tabby via their registered debit or credit card on the scheduled due dates. The collection process is largely automated, with regular notifications sent to remind users of upcoming payments. While late fees have been discontinued, Tabby maintains robust debt collection procedures for defaults, which may involve external agencies and legal actions to recover outstanding balances.
The Tabby mobile application is central to the user experience, boasting an impressive 4.8-star rating on both app stores. Key features include:
- Instant Approvals: Quick decisions on purchases.
- Payment Reminders: Automated notifications to help users stay on track.
- Digital Tabby Card: A virtual card compatible with Apple Pay and Google Pay for in-store purchases.
- Tabby Shop Marketplace: An integrated platform within the app for discovering merchants and exclusive deals.
- Tabby Care Purchase Protection: Additional safeguards for consumer purchases.
- Cashback Offers: Exclusive benefits for Tabby+ subscribers.
Customer support is available 24/7 through in-app chat, a dedicated phone line (800 82229), and email ([email protected]), ensuring users can receive assistance whenever needed. Positive customer reviews frequently highlight the app's ease of use and the transparency of its terms. While some past complaints revolved around late-fee disputes (now addressed by the policy change), occasional declines at checkout, and limited initial credit lines for new users, Tabby continuously works to refine its services.
Market Position and Regulatory Landscape
Tabby FZ-LLC operates within a well-defined regulatory framework in the UAE. It is registered as a fintech entity under the UAE Central Bank's sandbox initiative and operates as a licensed FZ-LLC. The company undergoes regular audits by the Central Bank of the UAE, ensuring adherence to stringent financial regulations. Tabby complies with the Consumer Protection Law, Anti-Money Laundering (AML) rules, and accurately reports credit data to the Al Etihad Credit Bureau, contributing to a healthy financial ecosystem. The company has a clean regulatory record, with no public penalties or sanctions.
Tabby stands as the leading BNPL provider in the MENA region, distinguished by its vast merchant network (over 45,000 online and offline outlets) and a rapidly growing user base exceeding 4 million active customers. Its valuation of 3.3 billion dollars post-Series E funding underscores its market dominance.
While competitors like Postpay, Tamara, and Spotii exist, Tabby differentiates itself through a multi-product financial services roadmap, including the innovative Tabby Shop marketplace, and its ambition to expand beyond BNPL into areas like debit cards, digital wallets, and remittances. Its strategic partnerships with major retailers such as Adidas, IKEA, SHEIN, and Bloomingdale's, alongside substantial debt facilities from institutions like J.P. Morgan (including a 700 million dollar receivables securitization), further solidify its competitive edge and growth trajectory.
Tabby's financial performance reflects its strong market position, reporting a profit of 24 million dollars in the first half of 2025, a significant increase from 5.2 million dollars in the first half of 2024. This growth is fueled by a 43% rise in merchant commission and a 136% increase in customer revenues. With over 1.7 billion dollars in total funding across nine rounds, Tabby is well-capitalized for continued expansion into new GCC markets, including Kuwait.
Practical Advice for Potential Borrowers
For individuals in the UAE considering Tabby's services, here is some practical advice:
- Understand the Terms: While Tabby's core BNPL offering is interest-free, always review the specific terms for any extended installment plans or deferred payment options. The clarity on no late fees since December 2023 provides significant peace of mind for on-time payments.
- Budget Wisely: Tabby offers convenience, but it is crucial to ensure that installment payments fit comfortably within your monthly budget. Use the payment reminders provided by the app to avoid missing due dates.
- Monitor Your Spending: Despite the ease of splitting payments, remember that you are still committing to the full purchase amount. Keep track of your outstanding balances across all your Tabby purchases to prevent overextending yourself.
- Utilize App Features: Take full advantage of the Tabby app's features, such as payment reminders and the Tabby Shop, to manage your finances effectively and discover beneficial offers.
- Contact Support if Needed: Should any issues arise, Tabby's 24/7 customer service via chat, phone, or email is readily available to assist with queries or payment adjustments.
Tabby FZ-LLC has undeniably transformed the consumer finance landscape in the UAE, offering a convenient, transparent, and now Shariah-compliant way to manage purchases. By understanding its offerings and using the service responsibly, consumers can leverage Tabby to enhance their shopping experience and financial flexibility.
