Tabby and Shahbandr Partner to Bring BNPL to 20,000+ Online Stores in the UAE and MENA

Leading Buy-Now-Pay-Later (BNPL) fintech Tabby has entered into a strategic partnership with Shahbandr, a prominent UAE-based e-commerce enabler, aimed at empowering over 20,000 online merchants across Saudi Arabia, the United Arab Emirates and the wider Middle East and North Africa (MENA) region with flexible BNPL payment solutions at checkout.

Under this agreement, Tabby’s interest-free instalment financing will be integrated into Shahbandr’s merchant ecosystem, allowing a vast network of e-commerce sites to offer customers the ability to split purchases into manageable payments — significantly reducing the upfront cost barrier for shoppers and driving conversion and average order value for retailers.

The move marks a major expansion in Tabby’s merchant outreach strategy at a time when the MENA BNPL market is rapidly growing, driven by increasing e-commerce penetration and consumer preference for flexible payment options without hidden fees or interest. It also reflects the rising demand among regional merchants for alternative payment methods that can improve sales performance and customer loyalty.

Key Highlights

• New partnership: Tabby and UAE e-commerce enabler Shahbandr collaborate to deliver BNPL solutions to over 20,000 online stores in the region.
• Merchant impact: The integration enables retailers to offer flexible, interest-free instalments at checkout, enhancing customer shopping flexibility.
• E-commerce growth: The deal comes amid robust expansion of BNPL adoption and online retail across the UAE and Saudi Arabia.
• Tabby’s scale: Tabby already serves millions of users and tens of thousands of brands with its core BNPL platform in MENA.
• Consumer appeal: Flexible payment options are increasingly preferred by younger, digitally savvy shoppers in the region.

The Partnership: Fueling Merchant Growth with Flexible Payments

In one of the boldest BNPL expansions in the MENA region this year, Tabby and Shahbandr have formalised a partnership designed to extend Tabby’s payment flexibility solutions to more than 20,000 online merchants — a mix of established e-commerce platforms and growing digital storefronts.

Shahbandr has established itself as a key digital transformation and e-commerce enabler, working closely with merchants to support digital storefront launches, payment integrations and backend operations. Through this collaboration, the company will embed Tabby’s BNPL offering into its partner network, effectively allowing shoppers to split purchases at checkout into interest-free instalments — a proposition that has proven to boost conversion rates, reduce cart abandonment, and enhance customer loyalty.

For online retailers, particularly SMEs and emerging brands, the integration provides a competitive edge in a crowded digital marketplace. By offering flexible payments — a service that appeals strongly to millennials and Gen-Z consumers — merchants can attract new customers and increase average order values without bearing the credit risk themselves.

Market Context: The BNPL Boom in UAE and MENA

The buy-now-pay-later model has seen explosive growth across the UAE and broader MENA region, driven by a combination of rising e-commerce activity, consumer demand for transparent and fee-free payment options, and regulatory developments that support digital financial innovation. BNPL’s popularity is particularly strong among online shoppers seeking more control over cash flow and flexibility at checkout.

According to market reports, BNPL adoption in the UAE has been growing at a double-digit pace, with penetration expected to increase significantly as consumers and merchants alike embrace flexible financing for digital transactions.

Tabby — founded in 2019 — has emerged as one of the region’s most prominent BNPL players, extending its services to millions of users and partnering with tens of thousands of brands and stores, including major global names. Its growth has been underpinned by strong funding rounds and expansion across core markets such as the UAE, Saudi Arabia and Kuwait.

This latest partnership with Shahbandr positions Tabby to reach an even larger segment of online commerce — from established platforms to smaller e-tailers — reinforcing its leadership as the BNPL ecosystem scales rapidly across the Middle East.

What This Means for Merchants and Shoppers

1. Greater Conversion and Customer Retention

Flexible payment methods like BNPL are known to reduce cart abandonment rates and encourage shoppers to complete transactions they might otherwise postpone or avoid. As the Shahbandr-Tabby integration rolls out, merchants can offer consumers a smoother, more appealing checkout experience that prioritises convenience and affordability.

2. Increased Average Order Value

Studies across BNPL markets consistently show that offering instalment payment options leads to higher average order values (AOV) as consumers feel more comfortable making larger purchases when payments are spread over time — a win-win for both merchants and payment solution providers.

3. Broader Access for Smaller Retailers

For small and medium enterprises (SMEs) that may lack resources to build their own flexible payment infrastructure, partnering with digital enablers like Shahbandr provides a ready-made route to BNPL adoption without heavy technical or compliance burdens.

4. Empowered Shoppers

From an end-user perspective, BNPL gives greater control over cash flow, especially for younger and digitally native consumers who prefer transparent, interest-free payment plans — a major factor in online shopping decisions across the MENA region.

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