Tabby

In Kuwait's rapidly evolving financial sector, digital lending platforms are reshaping consumer spending habits. Among these, Tabby stands out as a leading Buy Now, Pay Later (BNPL) solution. This comprehensive profile, crafted by a financial analyst, delves into Tabby's operations in Kuwait, offering a detailed look at its offerings, regulatory adherence, and market standing. Our aim is to provide Kuwaiti consumers with the knowledge needed to make informed decisions about utilizing Tabby's services.

Tabby's Presence and Background in Kuwait

Tabby, legally registered as Tabby LLCFZ in Dubai, United Arab Emirates, with registration number 96455, was founded in 2019 by Hosam Arab and Daniil Barkalov. While its origins are rooted in Riyadh and Dubai, Tabby has significantly expanded its footprint across the MENA region, including a robust presence in Kuwait. The company is privately held, backed by major investors such as Wellington Management, STV, Mubadala Investment Capital, Blue Pool Capital, PayPal Ventures, and Sequoia Capital India.

Tabby's core business model revolves around its BNPL service, enabling shoppers to divide purchases into interest-free installments or defer full payment to a later date. This model particularly appeals to digitally savvy consumers and millennials seeking flexible payment options. In Kuwait, Tabby has cultivated an extensive network of online and physical merchant partners, making its services widely accessible across all governorates. Key executives steering Tabby include Hosam Hani Mohamed Arab as CEO and Co-Founder, Daniil Barkalov as Co-Founder, Abdulaziz Fahad Mohamed Saja as General Manager, and Khalifa Alenazi as Head of Collections.

Products, Pricing, and Application Process

Tabby provides a range of flexible payment solutions designed to accommodate various consumer needs, all with clear terms for the Kuwaiti market.

Loan Products and Services

• BNPL Installments: This flagship product allows customers to split their purchases into four equal, interest-free payments. These installments are typically due every two weeks or monthly, offering manageable repayment schedules.
• Pay Later: For those who prefer to settle the full amount at a later date, the Pay Later option allows customers up to thirty days (until the end of the month) to complete their payment, also with zero interest.
• Extended Plans: Subject to merchant offerings and customer eligibility, Tabby provides extended installment plans that can span up to twelve months. These plans cater to higher-value purchases, offering greater flexibility.

Amounts and Limits

The minimum transaction value for using Tabby at major merchants such as Jarir is KWD 20 (approximately 65 US dollars). The maximum approval limit for customers is KWD 700 (approximately 2,275 US dollars), determined through Tabby's credit assessment process.

Interest Rates, Fees, and Terms

• Interest: Tabby proudly offers 0% interest on all on-time payments for its standard four-installment plans. This commitment to interest-free financing is a significant draw for consumers.
• Late Payment Fees: While the standard plans are interest-free, missing an installment incurs a flat collection fee. For instance, reports suggest a fee of approximately KWD 1 on a KWD 35 installment, though specific fees may vary.
• Origination/Processing Fees: Tabby does not charge any origination or processing fees for its standard BNPL products, enhancing its appeal as a cost-effective payment solution.
• Early Repayment: Customers wishing to settle their outstanding balance early face no additional charges, providing full flexibility in managing their finances.
• Collateral Requirements: No collateral is required to use Tabby's services. Eligibility is determined through an underwriting process that includes identity verification, transaction history, and Tabby's internal credit scoring algorithms.

Application Process and Requirements

The application and onboarding process with Tabby is designed for convenience and speed:

• Application Channels: Customers can apply via the user-friendly Tabby mobile app (available on iOS and Android), through the official website (tabby.ai/en-KW), or directly in-store at participating merchants using point-of-sale integration, often via a Tabby Card or QR code.
• KYC and Onboarding: Tabby requires standard Know Your Customer (KYC) data, including a mobile number, a scan of the civil ID, valid debit or credit card details, a permanent Kuwaiti address, and an email address. Digital identity verification typically results in approval within minutes.
• Credit Scoring and Underwriting: Tabby employs a proprietary algorithm to assess creditworthiness. This algorithm evaluates various data sources, including payment card transaction history, Tabby usage history, and merchant transaction data, to determine risk factors and past repayment behavior.

Digital Experience, Regulatory Compliance, and Market Standing

Tabby's commitment to a seamless user experience and strict adherence to regulatory standards underpins its strong market position.

Mobile App Features and User Experience

The Tabby mobile application is central to its customer experience, boasting high ratings (4.8 on the App Store and 4.6 on Google Play). Key features include:

• One-tap checkout for swift transactions.
• Installment tracking to monitor payment schedules.
• Automated payment reminders to help avoid late fees.
• Access to exclusive merchant offers and promotions.
• In-app customer support for immediate assistance.

While the app receives praise for ease of use and transparency, some users have reported issues related to late payment fees leading to unexpected charges, occasional card declines, and, less frequently, concerns about data deletion and privacy on social media forums. Tabby offers 24/7 in-app chat, email support, and a call center to address customer inquiries, with an average resolution time of twenty-four to forty-eight hours.

Regulatory Status and Licensing

Operating in the Gulf region, Tabby adheres to strict financial regulations:

• Central Bank of Kuwait: Tabby operates under the guidelines for consumer credit set forth by the Central Bank of Kuwait (CBK). It is required to report to authorized credit bureaus as per CBK directives.
• Saudi Central Bank (SAMA): Tabby received approval under SAMA's BNPL regulatory sandbox in 2023, showcasing its commitment to regulatory compliance across its key markets.
• PCI DSS Certification: The company holds PCI DSS Certification, ensuring the secure handling of card data across all its operational markets.

To date, no public penalties or enforcement actions have been reported against Tabby in Kuwait. Consumer protection is a priority, with transparent terms and conditions displayed before checkout, detailing credit limits, fees, and payment schedules. Mandatory approval of these terms is required before the first transaction, and data privacy is governed by CBK and UAE data protection laws.

Market Position and Competitors in Kuwait

Tabby holds a prominent position among BNPL providers in Kuwait, competing with other notable players such as Tamara, Postpay, and Ounass Pay later. Its differentiation stems from a strong merchant integration network, consistent zero-interest standard plans, and localized underwriting models that cater to regional specificities.

Tabby has demonstrated robust growth, backed by significant funding rounds, including a 160 million US dollar Series E round in August 2025 that valued the company at 3.3 billion US dollars. This funding is earmarked for product innovation and geographic expansion. The company boasts over fifteen million users across MENA, with an estimated 400,000 active users in Kuwait. Partnerships with major banks like Gulf Bank and NBK for settlement and collection, alongside collaborations with telcos and retailers like Ooredoo, Jarir, and Alezay, further solidify its market presence. Small and medium-sized businesses integrating Tabby report a twenty to thirty percent uplift in average order value and a fifteen percent reduction in cart abandonment.

Customer Insights and Practical Advice for Potential Borrowers

Understanding the nuances of Tabby's service from a user perspective and adopting responsible borrowing practices are crucial for Kuwaiti consumers.

Customer Reviews and Common Issues

While Tabby's mobile app garners high ratings for its user-friendliness and transparency, certain aspects consistently appear in customer feedback:

• Late Payment Fees: The most frequent issue raised involves the imposition of flat collection fees when installments are missed. While the core service is interest-free, failing to meet payment deadlines can lead to additional charges, which some users find unexpected if they have not fully reviewed the terms.
• Card Declines: Occasional payment card declines, sometimes linked to merchant bank fees, have been reported. In such cases, customers may need to seek refunds directly from Tabby.
• Data Concerns: Some social media discussions have touched upon data deletion and privacy, indicating a need for clear communication regarding data retention policies, which Tabby states are governed by CBK and UAE data protection laws.

It is imperative for users to be aware of these potential issues and to engage with Tabby's comprehensive customer service channels for resolution.

Practical Advice for Potential Borrowers

As a financial expert, I offer the following advice for Kuwaiti consumers considering Tabby's BNPL services:

• Understand the Terms: Always read the full terms and conditions, especially regarding late payment fees and the exact repayment schedule, before confirming a purchase. Ensure you are clear on when each installment is due and the consequences of a missed payment.
• Budget Responsibly: While Tabby offers flexible payments, it is not free money. Ensure that the total purchase amount fits within your budget and that you can comfortably afford all installments on their due dates without financial strain.
• Monitor Payments: Utilize the Tabby mobile app's installment tracking and payment reminder features to stay on top of your schedule. Proactive management can help you avoid unexpected late fees.
• Check Merchant Availability: Not all merchants offer Tabby's extended plans or specific installment options. Verify the available payment options at your chosen retailer before making a purchase decision.
• Avoid Over-Reliance: BNPL services can be a convenient budgeting tool, but over-reliance can lead to multiple outstanding payments across different purchases, potentially making financial management complex. Use Tabby strategically for planned purchases rather than impulse buys.
• Impact on Credit: While Tabby determines creditworthiness internally, continuous defaults can potentially impact your financial standing and future access to credit, especially as Tabby reports to credit bureaus per Central Bank of Kuwait guidelines.

Tabby presents a valuable option for flexible, interest-free shopping in Kuwait, provided consumers engage with its services thoughtfully and responsibly. By understanding its products, fees, and operational framework, individuals can leverage Tabby's benefits while effectively managing their personal finances.