Buy now, pay later services have rapidly gained traction in the Middle East in the last 12 months accelerated by a raft of new partnerships and deals. While credit and debit card use remains the most prevalent payment method across ecommerce in the region, a recent survey from online retail management company Uplo revealed that BNPL is continuing to grow in popularity, now accounting for more than 23% of ecommerce sales. With this trend showing no signs of slowing down, here are five BNPL services you may want to tap in 2024.
Tabby
In November, Tabby raised $200 million in equity financing at a valuation of $1.5 billion making it the first fintech in the Middle East and North Africa (MENA) region to achieve unicorn status. Customers must download the popular Tabby app to enjoy the ‘split-in-4-monthly payment’ scheme. Only the first payment is paid upfront and with the rest charged over the following three months. It has fast become one of the most popular pay later payment methods in the region and adding to its wide range of partners, it was revealed recently that Dubai Taxi Company (DTC) is now set to roll out the payment solution for commuters in early 2024.
Tamara
Although Tamara’s HQ is in Riyadh, its team spans borders, with offices in Dubai, Berlin, and Ho Chi Minh City. It secured up to $250 million in additional debt financing toward the end of last year and more recently partnered with Paymob to further expand its payments ecosystem. Like Tabby, the shopping and payments platform allows customers to pay in up to four interest-free payments. It was founded by serial entrepreneur Abdulmajeed Alsukhan along with his partners Turki Bin Zarah and Abdulmohsen Al Babtain. It currently has more han 9 million users and over 26,000 merchants, including leading global and regional brands.
Spotii
Dubai-based fintech Spotii launched its shop now pay later platform in the UAE, in 2020 before it was acquired by Australia-based Zip in 2021. With Spotii, customers can spread their purchase over four cost-free instalments using any debit or credit card. The plan can be set up and approved instantly and payments are automatically scheduled so customers don’t need to re-enter card details. It was another fintech that had a big year in 2023, notably securing a permit from the Saudi Central Bank (SAMA) to provide its BNPL services in May.
Postpay
Founded in 2019, Postpay is another leading buy now, pay later provider in the region. It previously partnered with MasterCard and the Commercial Bank of Dubai to offer consumers the region’s first virtual BNPL card solution. This virtual card is made available on the Postpay app and can be added into a wallet, without having to integrate into other companies’ products. With Postpay, the customer can split their online payments into three equal parts. The first instalment is processed immediately, and the customer receives their product as usual. The remaining two instalments are due each month after that.
Madfu
Running on its theme of ‘Enjoy Now & Pay Later’, Madfu was also granted a permit by SAMA to provide its BNPL services in the region last year. Through the Madfu app it provides payment options in three instalments without interest. Among its partners, it lists names such as viral cookie shop Crème which opened for the first time in Dubai in October, Domidoo, Eco Bake, Mombai, Nolia, Alo Café, Arcomi and Mishable.
