The BNPL model allows consumers to split their purchases into interest-free installments, providing an alternative to traditional credit options. This approach has gained significant traction in the Middle East, with adoption rates reaching up to 62% over the past year, according to Checkout.com's latest Digital Commerce Report. Specifically, the UAE and Saudi Arabia have seen adoption rates of 39% and 42%, respectively. This surge is attributed to increasing consumer demand for flexible payment and credit solutions, coupled with an 80% increase in daily online shopping since 2020.
By integrating Tabby's BNPL services into Checkout.com's platform, merchants can offer payment flexibility that aligns with evolving consumer preferences. This integration is designed to boost sales, conversion rates, and average order values by removing price as a barrier at the point of purchase. Additionally, it aims to enhance customer loyalty by providing a seamless and convenient shopping experience.
Abdulaziz Saja, General Manager for Saudi Arabia at Tabby, emphasized the benefits of the partnership, stating that it brings Tabby's flexible payment solutions to a broader range of merchants. This expansion provides Checkout.com's businesses access to Tabby's network of over 15 million high-intent shoppers while offering their customers greater flexibility at checkout.
Remo Giovanni Abbondandolo, General Manager for the Middle East and North Africa at Checkout.com, highlighted the strategic value of payments in increasing revenue for merchants through high-performance solutions. He noted that the partnership reinforces Checkout.com's commitment to delivering solutions that drive business growth and enhance customer experiences. Abbondandolo also pointed out that the popularity of BNPL has remained a preferred payment method for online shoppers in the UAE and Saudi Arabia, reflecting the region's growing demand for flexible payment options.
The collaboration between Checkout.com and Tabby comes at a time when the BNPL market in the Middle East is experiencing rapid growth. This trend is driven by consumers' increasing preference for installment-based purchasing options, especially as online shopping continues to expand. By combining Checkout.com's payment technology with Tabby's flexible financing solutions, the partnership aims to create an ecosystem that enhances payment performance and enables merchants to grow their businesses by offering consumers their preferred payment methods.
Merchants integrating Tabby's BNPL services through Checkout.com's platform can expect to see several benefits. These include an increase in average order value, as interest-free installments encourage larger basket sizes; improved conversion rates by reducing cart abandonment; and enhanced customer loyalty through repeat purchases. Furthermore, the integration offers a seamless payment experience that customers appreciate, contributing to overall satisfaction and retention.
The BNPL model's appeal lies in its ability to provide consumers with greater control over their finances. By allowing shoppers to spread the cost of their purchases over time without incurring interest, BNPL services address the growing demand for alternative credit options. This is particularly relevant in markets like the UAE and Saudi Arabia, where consumers are eager to adopt new payment solutions that offer convenience and flexibility.
For merchants, offering BNPL options can be a strategic move to attract and retain customers. By integrating such services, retailers can differentiate themselves in a competitive market, cater to the preferences of modern shoppers, and ultimately drive growth. The partnership between Checkout.com and Tabby provides merchants with the tools and support needed to implement BNPL solutions effectively, ensuring a smooth and efficient integration process.
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