Buy now, pay later (BNPL)
Definition
Buy now, pay later lets a shopper split a purchase into instalments at checkout, with a provider settling with the merchant and charging the merchant a fee. In the UAE the best-known providers are Tabby and Tamara.
For the shopper it feels like a payment method. For the merchant it's a financing cost. The fee comes out of the order's margin, so a BNPL order has to be judged on contribution margin after the fee, not on revenue. Get the fee, the settlement timing and the refund handling in writing, and remember that returns and cancellations on instalment orders involve the provider as well as the store.
It's no longer a side channel. Wamda reported on 14 September 2026 that Saudi-headquartered Tabby raised USD 233 million at a USD 6.5 billion valuation and has 25 million users registered across its markets and 70,000 business partners, which are group figures rather than UAE numbers. Gulf News reported on 27 July 2026 that Etihad Credit Bureau will reflect Tabby and Tamara transactions in UAE credit reports from July 2026, so instalment use now leaves a record. How it affects scores isn't something to promise customers.
Test it before making it permanent: switch it on for a defined set of products or period, then compare conversion rate, average order value and refund rate against a comparable stretch without it. Show the full price beside any instalment price in ads.
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