Buy Now Pay Later in Saudi Arabia: What Tabby’s Raise Means

Buy now pay later in Saudi Arabia just got a loud vote of confidence. On 16 September 2026, Tabby raised $233 million at a $6.5 billion valuation, about double the $3.3 billion it was valued at in February 2025. For online merchants, the message is simple: installment payments are now a normal part of how Gulf shoppers pay, and your checkout should be ready for them before the big sales season starts.

This guide explains what the news means for your store, how BNPL actually works for a merchant, how to switch it on, and which products benefit most. It is written for store owners in the Gulf and for international sellers who want to sell to Saudi customers.

What happened: Tabby’s raise in plain numbers

According to the Middle East Observer report, the round was led by Blue Pool Capital, with HSG, Wellington Management and Arbor Ventures also taking part. The report gives a few figures that matter to merchants:

• Tabby reports 25 million registered users.
• It works with about 70,000 business partners.
• Its annualised transaction volume is more than $18 billion, up from more than $10 billion in February 2025.
• The company has been profitable since 2023 and says it has no immediate plans for a public listing.

The other big point is direction. Tabby is moving beyond pure buy now, pay later into wider consumer finance: lending, SME finance, digital wallets, payment cards and money transfers. In practice, that means the BNPL button on your checkout is backed by a company building a full financial relationship with the shopper, not a side feature that may disappear next year.

Why buy now pay later in Saudi Arabia matters for your checkout

When one provider’s transaction volume grows this quickly, it tells you something about shopper habits. Many customers in Saudi Arabia now expect to see an installment option next to Mada, Apple Pay and card payments. If it is missing, some of them will not complain. They will simply finish the purchase in another store that offers it.

For a merchant, BNPL does three useful things:

• It lowers the price barrier. A product that feels expensive as one payment feels manageable when it is split. This matters most for mid-priced and higher-priced items.
• It moves customers away from cash on delivery. The order is paid through the provider at checkout, so you are not waiting for a courier to collect cash, and fewer orders are refused at the door.
• It shifts the collection work. Providers such as Tamara pay the merchant up front and collect the installments from the shopper themselves.

Keep one point in mind: the performance numbers you will see on provider websites are the providers’ own claims. They are useful as a direction, not as a promise for your store. Test and measure your own results.

How BNPL works for the merchant, step by step

The flow is the same whichever provider you choose. Here is what happens behind a typical installment order:

1. The shopper adds items to the cart and chooses the installment option at checkout.
2. The provider checks the shopper and approves or declines the plan.
3. If approved, the shopper pays the first part, and your store receives a confirmed, paid order.
4. The provider pays you the order value (minus its merchant fee) on its settlement cycle.
5. The provider collects the remaining installments from the shopper. Under the usual merchant terms, collection is its job, not yours.
6. If the customer returns the product, you process the refund through the provider, and the shopper’s plan is adjusted.

Tamara, for example, says on its page for Salla merchants that merchants “receive full payment upfront” while shoppers pay in installments with no late fees. The same page says the Tamara plugin for Salla (get a 10% discount with the code F-GTFFU30M) is free to install, but ask about any per-order merchant fees before you activate.

How to turn on installments in your store

If you sell on Salla, the setup is mostly clicks. The Salla Help Center explains how to turn on electronic payments such as Mada, Visa, Apple Pay, Google Pay and stc pay, and notes that Salla Merchant Services can help you set up providers like Tabby or Tamara. Use this checklist:

1. In your dashboard, go to Settings & Tools, then Payment Methods, and activate electronic payments (you must accept Salla’s sales policy).
2. Create a merchant account with the BNPL provider you choose. Have your commercial registration and bank details ready.
3. Once approved, connect the provider to your store and switch the installment option on.
4. Place a real test order with the installment option to confirm the checkout, the order status and the notification emails all work.
5. Add the provider’s badge or price split message on product pages, so shoppers see the smaller monthly amount before they reach checkout.
6. Update your returns page so customers know how refunds work on installment orders.

Note that Salla’s help article sets a minimum of SAR 100 for payment transfers to your account, so small balances wait until they reach that level.

If your store runs on Shopify, check whether your chosen provider offers an app for your market and plan. The logic stays the same: create the merchant account, connect it, test, then display the installment message on product pages. If you would rather have a team set this up with your store design, see our Salla store design service or our Shopify store design and migration service.

Tabby or Tamara? A quick comparison

You do not have to pick only one, and some stores offer both. Here is what the sources we opened say:

Point	Tabby	Tamara
Latest news	Raised $233 million at a $6.5 billion valuation (September 2026)	Offers a dedicated plugin for Salla stores
Scale reported	25 million registered users, about 70,000 business partners	Not stated on the page we opened
Merchant payout	Check your contract	Full payment upfront
On Salla	Salla Merchant Services can help set it up	Free Salla plugin

Before you sign, compare the merchant fee per order, the settlement cycle, how refunds are handled, and whether there is a minimum or maximum order value. Also make sure the provider is licensed by the Saudi Central Bank (SAMA), which regulates BNPL companies in the Kingdom.

Which products sell better with installments

BNPL helps most when the price is high enough that a customer pauses before buying. A phone case rarely needs installments. A premium item often does. Good candidates include:

• Audio: noise-cancelling headphones and party speakers with lights and a microphone.
• Smart devices: smartwatches and smart rings that track health and sleep.
• Content creation kits: wireless microphones, lighting and wearable mini cameras, often bought together as a bundle.
• Leather goods: premium women’s handbags and genuine leather men’s wallets and bags, which work well as gifts.
• Bundles: a charging station plus a power bank plus cables, sold as one set at a higher basket value.

Timing matters too. White Friday, 11.11 and the end-of-year gifting period are when shoppers buy the most expensive items of the year, and that is when a visible installment option does the most work. Set it up now, not the week of the sale. If you drive traffic from social platforms, our guide on preparing for TikTok Shop in Saudi Arabia covers the traffic side.

How MaXab.ai helps you add products worth paying for in installments

A strong checkout only pays off if your catalog has products people want. MaXab.ai is an AI-powered dropshipping app built for Salla stores. You connect your store, browse more than 10,000 products (the catalog is updated continuously), and add a product with one click, with no inventory and no upfront cost.

What sets MaXab.ai apart from traditional dropshipping apps:

• A real intermediary, not just a connector. MaXab.ai buys the product from the supplier and follows the order until it reaches your end customer, so you do not deal with suppliers or shipping yourself.
• Featured products shipped directly from China to your customers, including mobile electronics, audio, smart devices and content creation gear, the higher-value categories where installments help most.
• Products stocked in Saudi Arabia in the women’s handbags and men’s wallets and bags sections.
• AI product content. AI writes product titles, descriptions and SEO articles in your brand voice, so premium items get the clear, persuasive pages they need.
• Coming soon: an AI WhatsApp sales agent that works 24/7, and one-click product ad videos.

You can start on the free plan and compare the paid plans on our pricing section. Questions about how orders and tracking work are answered in the MaXab.ai FAQ.

Frequently asked questions

Do I carry the risk if a customer stops paying installments?

Usually not. Providers such as Tamara pay you the full order value up front and collect the installments from the shopper. Confirm the exact terms in your merchant contract before you go live.

Does BNPL cost the merchant anything?

Yes. Providers charge the merchant a fee on each order, even when a plugin is free to install. Ask each provider for its rate and factor it into your product pricing.

Should I offer both Tabby and Tamara?

Some stores do, because a shopper may already have an account with one and not the other. Start with one, measure orders and cash on delivery share for a few weeks, then decide whether adding the second is worth it.

Tabby’s new funding confirms that buy now, pay later is now core payment infrastructure in Saudi Arabia, not a trend. Switch on at least one installment option, test it, show the monthly price on product pages, and fill your catalog with products that are worth splitting into payments before White Friday arrives. When you are ready to add those products without holding stock, start with MaXab.ai.