Mubadala-backed Tabby expands BNPL payment model to Egypt

The FinTech will offer consumers interest-free instalment options amid rising cost of living in the country

Shoppers walk through a market in Cairo. BNPL platform Tabby says it aims to help Egyptians to stay in control of their spending. Reuters
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Dubai-based buy now, pay later platform Tabby has expanded into Egypt in an effort to tap into the country’s rising e-commerce sector by offering consumers interest-free, flexible payment options as the cost of living continues to rise.

Tabby’s expansion in the Arab world’s third-largest economy is aimed at helping Egyptians to stay in control of their spending and make the most out of their money, the company said on Tuesday.

“We are excited to provide Egyptians with flexible and honest payment experiences with no interest and no fees,” said Ahmed Khalil, general manager of Tabby Egypt.

“We are also delighted to be a growth partner for our retail partners by helping them tap into millions of active shoppers.”

Egypt's annual core inflation rate increased to 15.6 per cent in July, from 14.6 per cent in June, central bank figures show.

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.

However, high inflation is also driving the popularity of the BNPL payment option globally, with consumers taking advantage of short-term financing to split payments and better manage their money.

“The app is building financial products designed to create financial freedom in the way people shop, earn and save by reshaping their relationship with money,” the company said.

“Built on trust, not interest, the app enables commerce while encouraging responsible spending by empowering its shoppers with more purchasing power.”

Egypt’s BNPL sector is projected to surge 132.8 per cent on an annual basis to reach $434.7 million in 2022, according to a report published by Research and Markets.

BNPL payment adoption in Egypt is expected to record a compound annual growth rate of 55.9 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.

Existing BNPL players in Egypt include valU Consumer Finance, which teamed up with Amazon, the world’s biggest e-commerce company, in May to offer consumer financing in instalments as a payment method on

ValU is a fully owned subsidiary of Egypt’s EFG Hermes bank and was established in 2017.


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Tabby will allow consumers in Egypt to split their purchases into four interest-free payments at store checkouts, both online and offline, to track their spending, the company said.

With more than 2 million users, Tabby’s platform went live in the UAE in February 2020. It expanded to Saudi Arabia in July 2020.

Since then, it has since signed agreements with more than 3,000 global brands and small businesses in the UAE and Saudi Arabia, including H&M, Adidas, Nike, Ikea, Bloomingdale’s, Marks & Spencer, Swarovski and Toys R Us.

Last month, 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. Existing investors Mubadala Investment Company, Arbor Ventures and Global Founders Capital also participated in the company’s extended funding round, which began last year.

Updated: September 06, 2022, 8:30 AM