MENA-based Paymob has teamed up with shopping and payment platform Tamara to integrate Tamara’s Buy Now Pay Later (BNPL) service, continuing the trend of more flexible payment offerings across the region over the last twelve months.
The agreement between the two fintech companies creates a secure payments ecosystem that enables merchants in the GCC region to allow customers pay in four interest-free payments.
The latest deal comes as BNPL services in the region continue to gain traction, with companies recognising the significance of payment options in ensuring increased sales and conversions. While credit/debit card use is still the most prevalent payment method across ecommerce in the Middle East, 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.
According to the firms, the deal is designed to fuel the growth of small and medium size enterprises (SMEs) which are the greatest contributors to GDP in MENA.
The rollout
The addition of Tamara’s BNPL solution to Paymob’s gateway is via a simple integration, designed to reduce merchants’ barrier to entry and ensure transactions are processed more seamlessly. The partnership will initially serve merchants in KSA and the UAE in the first phase, with more countries planned to go live in later stages.
“There is a massive opportunity to enable merchants in the GCC to capitalise on the power of alternative payment methods and we are thrilled to partner with Tamara to fuel this growth in MENA,” said Islam Shawky, Co-founder and CEO of Paymob said,
Turki Bin Zarah, Co-founder and CCO of Tamara added, “As a leading commerce enabler, we are revolutionising how people shop, pay, and bank and are thrilled to partner with Paymob as we deliver on this goal.”
Recent funding
Both Tamara and Paymob are currently undergoing rapid growth fuelled by recent funding. In March, last year, Riyadh-based Tamara secured a $150 million debt facility Goldman Sachs, the first deal of its kind in the region.
Meanwhile, much of Paymob’s growth across the region has been driven by its 2022 Series B funding which was led by PayPal Ventures. The company expanded to the UAE in 2022 before securing PTSP certification from Saudi Payments in Q2 2023 making it fully operational in KSA.
