Follow-ups -eshrag News:
RIYADH: Saudi Arabia’s delivery app ToYou has partnered with fintech firm Tabby to provide a ‘Buy Now Pay Later’ facility to its customers.
This is part of ToYou’s strategy to further expand its customer base by offering an enhanced experience with a new and convenient way to pay, according to a press release.
The deal will pave the way for Tabby to allow its customers to buy as many times as they want from ToYou. This will provide them with a single bill at the end of the month without charging any interest.
The debut of ToYou in the BNPL market comes at a time when the sector witnessed an 81.2 percent growth, reaching $636.7 million in 2022, according to a report published by Research and Markets.
The report added that BNPL payment adoption will record a compound annual growth rate of 42.4 percent between 2022 and 2028, with BNPL gross merchandise value in the Kingdom reaching almost $5.3 billion by the end of the forecast period, up from $351.3 million in 2021.
Apart from ToYou, Tabby is also offering BNPL facility for top brands including noon, Bloomingdale’s, Adidas, and SHEIN among others.
“ToYou has earned a leading position in the delivery space through constant innovation and a deep understanding of customer needs and market dynamics. In the BNPL arena, the same can be said for Tabby,” said Ziyad Al-Ajlan, the chief commercial officer of ToYou.
Tabby’s CEO and Co-founder, Hosam Arab, said: “ToYou provides an important service to households in the Kingdom and we’re proud to empower their customers further with payment options that provide flexibility with no interest or fees.”
Earlier in November, ToYou partnered with Saudi payments giant Geidea, in a move to offer enhanced solutions and infrastructure while making payments across the digital ecosystem.
In November, ToYou also signed a memorandum of understanding with M2P Fintech to provide end-to-end payment solutions to customers and businesses in Saudi Arabia.
On the other hand, Tabby is also expanding its scope in Saudi Arabia as it is planning to soon roll out its virtual card in the Kingdom, after its successful launch in the UAE.
The Tabby virtual card is a Visa card that allows shoppers to split their purchases into four payments at select in-store locations.
“Saudi Arabia has a penetration rate of around 0.3 credit cards per person, so there is a real need for easy consumer credit, especially for day-to-day payments,” Abdulaziz Saja, general manager of Tabby Saudi Arabia, told Arab News.
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