Tabby and Tamara for Merchants: Should Your UAE Store Offer Buy Now, Pay Later?

By Noman Akhter · Updated November 14, 2026 · 4 min read

Walk into almost any UAE online store today and you’ll see “Split in 4 with Tabby” or “Pay later with Tamara” at checkout. Buy now, pay later (BNPL) has become a normal way for UAE shoppers to pay. For merchants, it can lift sales noticeably, but it also comes with fees.

Here’s what Tabby and Tamara offer merchants, how they work, and whether they’re worth adding to your store.

BNPL pricing for merchants is negotiated and changes over time. Figures below are indicative; get a quote from each provider.

Table of contents

How BNPL works
What does it cost merchants?
Tabby vs Tamara
Benefits for merchants
Downsides to consider
When BNPL makes sense
How to add Tabby or Tamara to your store
Example: is BNPL worth the fee?
Checklist before you apply
Frequently asked questions
How much does Tabby charge merchants?
Does the merchant get paid in full?
Can I offer Tabby without a website?
Want BNPL set up on your store?

How BNPL works

The customer chooses Tabby or Tamara at checkout.
They typically pay a first instalment upfront (for example 25%) and the rest over the following weeks or months, interest-free for the shopper in the standard plans.
You, the merchant, receive the full amount (minus the provider’s fee) from the BNPL provider.
The provider takes on the risk of the customer not paying.

What does it cost merchants?

BNPL providers charge the merchant a fee per transaction. Industry research puts Tabby’s merchant fee at roughly 3% to 4% per transaction, which is higher than a typical card fee. You’re paying for the extra conversions and bigger baskets BNPL can bring.

Tabby vs Tamara

	Tabby	Tamara
Core offer	Split purchases into 4 interest-free payments	Split payments and pay-later options
Integrations	Shopify, WooCommerce, payment partners like Checkout.com and PayTabs, in-store via QR or links	Shopify, WooCommerce and major gateways
Presence	Strong in UAE and Saudi Arabia	Strong in Saudi Arabia and the UAE

Many UAE stores offer both, since some customers already have an account with one and not the other.

Benefits for merchants

Higher conversion: customers who’d hesitate at full price are more likely to complete checkout.
Bigger orders: splitting payments makes higher-priced items feel more affordable.
No credit risk for you: the provider handles collections.
Marketing exposure: BNPL apps often list partner stores and run promotions.

Downsides to consider

Higher fees than card payments, which can hurt low-margin products.
Approval requirements: you’ll need a trade licence, live website and clear policies.
Returns and refunds must follow the provider’s process.

When BNPL makes sense

Your average order is above roughly AED 200 to 300
You sell electronics, furniture, fashion, beauty, courses or other considered purchases
Your margins can absorb a few extra percent in fees

If you sell low-priced, low-margin items, BNPL may cost more than it earns. Test it and watch your numbers.

How to add Tabby or Tamara to your store

Make sure you have a trade licence, business bank account and a professional website with policies.
Apply on the provider’s merchant page.
Once approved, install their plugin or app for Shopify or WooCommerce, or connect through your payment gateway.
Add BNPL messaging on product pages (“or 4 payments of AED X”), which often matters as much as the checkout option itself.

Pair this with a solid card gateway. See my guide to the best payment gateways in the UAE.

Example: is BNPL worth the fee?

Suppose your average order is AED 400 and the BNPL fee is around 6% (rates vary by provider and contract):

Item	Without BNPL	With BNPL
Orders per month	100	115 (if conversion rises 15%)
Average order value	AED 400	AED 440 (if basket size rises 10%)
Revenue	AED 40,000	AED 50,600
BNPL fees (on BNPL orders only, say half)	0	about AED 1,518

If BNPL lifts conversion and basket size even a little, the fee can pay for itself. If it doesn’t, you are simply paying more per order. Test for two to three months and compare.

Checklist before you apply

Valid UAE trade licence and business bank account.
Live website with clear prices, returns and delivery policies.
Product categories accepted by the provider.
Expected monthly sales volume and average order value.

Frequently asked questions

How much does Tabby charge merchants?

Industry estimates put it at roughly 3% to 4% per transaction, but actual rates are agreed with each merchant.

Does the merchant get paid in full?

Yes. The provider pays you the order amount minus its fee and collects instalments from the customer.

Can I offer Tabby without a website?

Some providers support in-store payments through QR codes or payment links, which can work for social sellers.

Want BNPL set up on your store?

Official source: for the latest rules and fees, check the Central Bank of the UAE.

I set up UAE stores with cards, Apple Pay, BNPL and WhatsApp ordering. Book a free consultation.

Sources

Sacra: Tabby research