Unveiling Tabby’s Revenue Streams: The Profit Mechanisms of a Buy Now, Pay Later Leader

Tabby, the prominent Buy Now, Pay Later (BNPL) platform in the Middle East, has revolutionized the way consumers shop and pay for goods. But have you ever wondered, “How does Tabby make money?” Let’s delve into the various revenue streams that enable Tabby to sustain and grow its operations.

Merchant Fees

One of the primary sources of revenue for Tabby is the fees charged to merchants. When a customer makes a purchase using Tabby’s BNPL service, the merchant pays a percentage of the transaction amount to Tabby. This fee is justified by the increased sales and higher average order values that merchants typically experience when offering a BNPL option. By facilitating more significant and frequent purchases, Tabby adds considerable value to its partner merchants.

Consumer Late Fees

While Tabby prides itself on being a customer-friendly platform, it does earn revenue from late payment fees. If a consumer fails to pay their installment on time, they incur a late fee. This practice not only generates revenue but also encourages timely payments, ensuring the cash flow remains steady.

Interest and Financing Charges

For consumers who opt for longer-term financing options beyond the typical interest-free period, Tabby charges interest. This interest on extended payment plans is another significant revenue stream. By offering flexible financing options, Tabby attracts a broader customer base while earning from the interest on these extended payments.

Partnerships and Collaborations

Tabby collaborates with various financial institutions and service providers to enhance its offerings. These partnerships often include referral fees and revenue-sharing agreements. For instance, when Tabby promotes a partner’s financial product or service, it earns a commission on successful referrals.

Data Monetization

In today’s digital age, data is a valuable asset. Tabby collects vast amounts of data on consumer behavior, spending patterns, and preferences. While respecting privacy and adhering to data protection regulations, Tabby can leverage this data to provide insights to merchants and partners. This data-driven approach helps businesses better understand their customers, leading to improved targeting and personalized marketing strategies.

White-Label Solutions

Tabby also offers white-label BNPL solutions to other businesses. By providing its technology and infrastructure to companies that wish to offer BNPL services under their brand, Tabby can earn licensing and service fees. This B2B revenue model expands Tabby’s reach and diversifies its income streams.

Expansion into New Markets

Geographical expansion presents another avenue for revenue growth. By entering new markets, Tabby can tap into a larger customer base and establish partnerships with local merchants. Each new market brings unique opportunities and challenges, but the potential for increased revenue is significant.


Understanding “how does Tabby make money” reveals the diverse and multifaceted revenue streams that support its business model. From merchant fees and consumer late fees to interest charges, partnerships, data monetization, and white-label solutions, Tabby has built a robust financial foundation. As it continues to innovate and expand, Tabby is well-positioned to maintain its leadership in the BNPL industry.

By leveraging these various revenue sources, Tabby not only sustains its operations but also drives growth and innovation in the ever-evolving financial technology landscape.

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