Saudi delivery app ToYou joins forces with BNPL platform Tabby

Saudi Arabia’s delivery super app, ToYou, has partnered with shopping and payments app, Tabby, to launch ToYou Pay Later.

ToYou Pay Later offers customers a new and convenient way to pay. Tabby will enable users to buy as many times as they want from ToYou, with a single bill at the end of the month without interest or fees.

ToYou’s CCO, Ziyad Al-Ajlan said: “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 buy-now-pay-later (BNPL) arena, the same can be said for Tabby,” explained the CCO. “Together, we are a powerful force on the fintech landscape, and our users can expect great things to come.”

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.”

Al-Ajlan points to the synergies that make the ToYou-Tabby partnership a logical next step. “We are both innovators and leaders in our fields, and we share a common desire to truly transform customer experience.”

In addition to offering flexible and interest-free payment options to customers, Tabby appeals to companies, delivering average increases of more than 30 per cent in order values, 18 per cent in conversion rates, and 40 per cent in repeat purchasing. Raising more than $275m in funding to date, Tabby is active in Saudi Arabia, the UAE, Kuwait, and now Egypt, with millions of active users and more than 10,000 global brands and small businesses onboard.

In the space of just three years, ToYou has become a leading contender in Saudi Arabia’s rapidly growing m-commerce delivery and on-demand services space, recording triple-digit growth in GMV, increased improvement across operational performance and expanding its services and offerings into 56 cities across the kingdom.

ToYou’s decision to partner with Tabby comes against a backdrop of growth in the BNPL market. According to a survey by Research and Markets, BNPL payments in Saudi Arabia is expected to have grown 81.2 per cent, reaching $636.7m by the end of 2022.

The report also predicts that BNPL payment adoption will record a CAGR of 42.4 per cent between 2022 and 2028, with BNPL gross merchandise value in the country reaching almost $5.3bn by the end of the forecast period, up from $351.3m in 2021.