Dubai-based buy now, pay later platform Tabby and Egypt’s payments company, Paymob, have signed a deal that allows businesses in Egypt to process Tabby’s interest-free flexible payments solution via Paymob’s gateway.
The two regional FinTech companies said they would work together to make a “seamless” BNPL solution for both in-store and online retailers.
Tabby’s BNPL payment solution will be available to over 120,000 Paymob merchants, where they can grow their average order value, conversion rate, and overall performance.
What to Expect from Tabby and Paymob Deal
As the cost of living keeps going up in the Arab world’s third-largest economy, Tabby gives customers flexible payment plans that don’t charge interest. The move is aimed at helping Egyptians stay in control of their spending and make the most of their money.
The companies agreed that the partnership between two of the region’s most important financial technology companies gives customers great experiences and helps Egypt’s growing e-commerce market. E-commerce in MENA is expected to reach $48 billion by the end of 2023. This growth will be sped up by the rise in digital adoption during the COVID-19 pandemic and by good government policies.
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The partnership will also help build an ecosystem that is good for both customers and merchants.
Ahmed Khalil, Tabby Egypt’s general manager, said, “Today, there is a strong demand for greater financial freedom and flexibility to enable consumers to make their purchases.”
He continued, “Partnering with Paymob allows our technology to be instantly accessible to their network of over 120,000 retailers in Egypt.”
Khalil said he understands that retailers need the technology infrastructure that allows them to instantly plug and play solutions that offer instant financial freedom at checkout, without interest or fees.
Tabby announced earlier in September that it was expanding to Egypt. This came after it raised $150 million in August, bringing its total funding to date to $275 million. In May, Paymob raised $50 million in Series B funding.
This month, Tabby, which is backed by Abu Dhabi’s Mubadala Investment Company, entered the Egyptian market to take advantage of the growing e-commerce market in the most populous Arab country.
COVID-19 And BNPL Adoption In Egypt
Central bank figures show that Egypt’s annual core inflation rate increased to 16.7 per cent in July, up from 15.6 per cent in July.
The BNPL business model, which allows consumers to make online purchases instantly and spread their payments out over interest-free instalments, has boomed since the onset of the COVID-19 pandemic, driven by millennials and Generation Z.per cent between 2022 and 2028, while gross merchandise value is estimated to reach $6.23 billion by 2028, from $186.7m in 2021, the report said.
Tabby has helped “thousands of merchants” across Egypt, the UAE, and Saudi Arabia increase their average order value by 33 per cent on average.
Tabby has helped thousands of merchants across Egypt, the UAE, and KSA increases their average order value (AOV) by 33% on average, their overall conversion rate by more than 18% and a +40% increase in the number of returning customers. With more than 2+ million active users and 6,000+ merchants in its network, Tabby is the largest payments and shopping app in MENA.
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Since its founding in Egypt in 2015, Paymob’s gateway has offered the largest and most comprehensive number of payment acceptance methods in North Africa. Paymob’s omnichannel payments infrastructure enables over thirty online and in-store payment methods via its gateway, point of sale (POS), and Paymob app products. Paymob aims to make the process of growing a business in the digital economy simple, seamless and agile while delivering a great customer experience to its merchants and cutting-edge products to its partners.
Tabby, which has more than two million active users and about 6,000 merchants in its network, went live in the UAE in February 2020. It expanded to Saudi Arabia in July 2020.
In August, the company raised $150m in debt financing from New York-based Atalaya Capital Management and existing investor Partners for Growth to help fund its global expansion.
It also raised $54m from Sequoia Capital India and Saudi Arabia’s STV in March, in a round which also had participation from existing investors.