Tabby has successfully obtained consumer and SME finance licenses from the Saudi Central Bank (SAMA), marking a significant milestone for the financial services app. This regulatory endorsement empowers Tabby to introduce extended payment plans for larger purchases while simultaneously offering working capital solutions to retailers on its platform. On the consumer front, the new license allows the financing of purchases exceeding SAR 2,000, with limits reaching up to SAR 50,000. The financing model is structured on a Shariah-compliant Murabaha basis, ensuring that costs are predetermined and fixed, thereby eliminating late fees and unexpected charges. Alongside these new offerings, Tabby will continue to provide its traditional interest-free split-payment options, catering to a broader range of consumer needs. The introduction of longer payment terms is poised to unlock high-value categories such as education, travel, used cars, and short-term rentals, with notable retailers like Noon, Fitness Time, IKEA, Almanea, Almosafer, Almatar, and flynas already integrating this service. Hosam Arab, CEO and Co-Founder of Tabby, emphasized the importance of this development, stating that it addresses clear consumer demand for flexibility in managing larger purchases, thereby enhancing customer control over their financial decisions. This approval from SAMA follows Tabby's successful transition from the central bank's regulatory sandbox to formal operational oversight.
Source: Fintech News ME
