Tabby and Tamara are the two main buy now, pay later providers in Saudi Arabia, both licensed by the Saudi Central Bank. Customers split a purchase into instalments, typically four, without interest. The merchant is paid upfront and pays a fee higher than card processing. BNPL pays off most on higher-value baskets.
What buy now, pay later means in Saudi Arabia
Buy now, pay later, known in Arabic as شراء بالتقسيط (buying in instalments), lets a shopper split a purchase into several payments. In Saudi Arabia the standard offer is four interest-free payments, with the first taken at checkout. Longer plans exist for larger purchases.
BNPL providers operate under Saudi Central Bank (SAMA) licensing and follow Sharia-compliant, interest-free models for customers. The provider carries the credit risk; the merchant receives the full amount, minus the provider's fee.
Tabby vs Tamara: what differs for a merchant
- Both offer split-in-four at checkout, and both have Shopify apps and APIs for custom stores.
- Both charge the merchant a percentage per order, plus sometimes a fixed fee, higher than mada or card processing.
- Both have their own shopping apps, which send traffic to listed merchants. That marketing reach is part of what the fee pays for.
- Approval rates, category restrictions and settlement terms differ, and are negotiated per merchant. Get both quotes.
When BNPL is worth the fee
BNPL earns its fee when it changes whether a purchase happens. That is most true for baskets in the hundreds or thousands of riyals: fashion, electronics, furniture, beauty, and anything bought as a gift. For low-value, high-frequency items it tends to add cost without adding many sales.
Test it. Add one provider, watch conversion and average order value for a month against a comparable period, then decide whether to add the second.
Is BNPL safe for shoppers?
Licensed providers verify identity, show the instalment schedule before purchase and do not charge interest on standard plans. Late fees and spending limits apply, so the usual advice holds: only split what you would be comfortable paying in full.
Adding Tabby or Tamara to your store
On Shopify, both install as payment apps and appear as their own buttons at checkout. On a custom store, both provide APIs and hosted checkout flows. Either way, show the instalment amount on product pages; the "4 payments of SAR 125" message is often what triggers the purchase, not the checkout button.
