From Tabby to Tamara: The Story of the "Buy Now, Pay Later" Revolution
1. Introduction: The Spark That Ignited the Revolution
Saudi Arabia's fintech sector underwent a radical transformation with the emergence of a new generation of startups that redefined the concept of consumer financing. At the heart of this revolution, Tabby and Tamara rose to prominence, capturing more than 90% of the Kingdom's "Buy Now, Pay Later" market.
This transformation aligns with Vision 2030's targets of enhancing financial inclusion and reducing dependence on cash.
2. Tabby: Regional Leadership
Tabby was founded in the UAE in 2019 by Hosam Arab, with the goal of bridging the gap between consumers' need for financial flexibility and the rigidity of traditional banks.
Key growth indicators (2025):
- Market valuation: $4.5 billion (October 2025).
- Annual transaction volume: $10 billion.
- Registered users: more than 15 million users.
- Merchant partners: more than 40,000 merchants.
- Q1 2025 performance: revenue of SAR 319.4 million and net profit of SAR 65.2 million.
3. Tamara: The Saudi Response and Local Ambition
Tamara launched from Riyadh in early 2020, founded by Abdulmajeed Al-Sukhan, Turki Bin Zaraah, and Abdulmohsen Al-Babtain, to offer an integrated banking services model.
Strategic achievements:
- Official license: obtained a Saudi Central Bank (SAMA) license in February 2025.
- Valuation: the first Saudi startup to reach a $1 billion unicorn valuation in December 2023.
- Q1 2025 performance: revenue of SAR 215.9 million and net profit of SAR 25.8 million.
- Financial capacity: secured $2.4 billion in credit facilities.
4. Analytical Comparison: Tabby vs Tamara
| Comparison Dimension | Tabby | Tamara |
|---|---|---|
| Year Founded | 2019 (UAE) | 2020 (Saudi Arabia) |
| Current Valuation | $4.5 billion | More than $1 billion |
| Users | More than 15 million users | More than 10 million users |
| Partners | More than 40,000 partners | More than 30,000 partners |
5. Future Outlook
The size of the deferred payments market in Saudi Arabia reached approximately SAR 37 billion in 2024, with market growth projections from $1.4 billion to $2.8 billion by 2029.
Cited Sources
- Saudi Central Bank
- Tamara — Mubasher
- Tabby Funding - tabby.ai
- Saudi unicorn - zawya.com
- Bloomberg - Tabby Valuation
- Tamara Financing - indexbox.io
- Al-Iqtisadiah Newspaper
