The Buy-Now-Pay-Later (BNPL) model, which allows customers to spread their payments over time, has rapidly gained traction in the Middle East, especially following the surge in e-commerce during the COVID-19 pandemic. The region’s youthful demographic, with 60% of the population under 30, has embraced this flexible payment method, fueling the growth of fintech startups in the space. As a result, BNPL companies have become some of the most-funded startups in the MENA region. Here, we explore the top five BNPL fintechs driving this transformation.
1. Tabby
Dubai-based Tabby, founded in 2019 by Hosam Arab and Daniil Barkalov, has skyrocketed to become the Middle East’s BNPL leader. With over 10 million users and 30,000 retail partners, including major brands like IKEA and Noon, Tabby has seen impressive growth, handling over US$6 billion in annual transactions. The platform’s success was underscored by its recent unicorn status, with a US$1.5 billion valuation following a US$200 million funding round led by Wellington Management, PayPal Ventures, and Mubadala. The company plans to continue expanding across the UAE and Saudi Arabia, with ambitions to list on Saudi Arabia’s Tadawul stock exchange. As CEO Hosam Arab explains, Tabby aims to revolutionize financial services to provide fairer and more responsible solutions to its growing customer base.
2. Tamara
Founded in 2020, Tamara has quickly become a powerhouse in Saudi Arabia’s BNPL market. With 6 million customers and partnerships with major merchants like Shein, IKEA, and Jarir, Tamara is one of the region’s most recognized names. The company’s strategic growth was highlighted by securing a US$150 million debt facility from Goldman Sachs, making it the first of its kind in the region. Operating in Saudi Arabia, the UAE, and beyond, Tamara also received regulatory approval from the Saudi Central Bank, positioning it for even greater success in the future. Co-founded by Abdulmajeed Alsukhan and Turki Bin Zarah, Tamara is on a mission to provide accessible, flexible payment solutions to millions of customers.
3. Postpay
Launched in Dubai in 2019 by Tariq Sheikh and Dani Molina, Postpay has quickly grown to 1.2 million active customers and over 1,000 retail partners, including Footlocker and Dermalogica. With a strong focus on accessible financial products, Postpay raised over US$35 million in funding from investors like Afterpay and AP Ventures. The company’s recent debt financing deal with the Commercial Bank of Dubai further supports its expansion across the GCC. Known for its high return rate and intuitive app, Postpay continues to disrupt traditional finance by providing fair, flexible payment solutions.
4. Cashew
Cashew, founded in the UAE in 2020 by Ammar Afif and Ibtissam Ouassif, offers an alternative to credit card debt by allowing users to make purchases without accruing high-interest charges. The company has raised US$41 million in funding, including a US$10 million investment from Mashreq Bank, which integrated Cashew’s platform into its Neopay payment system. Cashew has also attracted the attention of Saudi’s Shaker Group, which purchased a 10% stake to accelerate growth in the Kingdom. With a focus on digital lending solutions and customer-centric financial management tools, Cashew is poised to capture the growing demand for flexible, interest-free payment options.
5. Spotii
Since its inception in 2020, Spotii has built a solid presence in the UAE, Saudi Arabia, and Bahrain, amassing over 1 million registered users and 1,500 merchant partners. Founded by Anuscha Iqbal and Ziyaad Ahmed, Spotii was acquired by Australia’s Zip in 2021 and later by UAE-based fintech NymCard. The acquisition enables Spotii to combine its innovative BNPL services with NymCard’s robust payments infrastructure, creating a powerful platform for credit-on-demand products. Spotii stands out with its unique features, including smart expense categorization, instant credit decisions, and advanced machine learning models, offering unmatched value-added services to its customers.
These five fintech companies are shaping the future of consumer finance in the Middle East, providing innovative and flexible solutions to meet the growing demand for BNPL services. With strong backing from investors and a focus on digital transformation, they are poised to continue their rapid expansion and solidify the Middle East’s position as a leading market for BNPL innovation.
