Tabby eyes bigger role in UAE banking market as Cash accounts hit 1 million in 2 months

Source: ArabianBusiness

The $6.5 billion fintech wants to become customers’ primary financial relationship as it expands into international transfers, bill payments and everyday spending.

Tabby is looking to deepen its presence in the UAE’s financial services market after more than one million people opened accounts with its new Tabby Cash product in just two months, as the fintech sets its sights on becoming customers’ primary financial relationship.

The Dubai-founded fintech, which was valued at $6.5 billion in September, is expanding beyond its traditional buy now, pay later business into everyday financial services, including international money transfers, bill payments and spending accounts.

“Our ambition is to become the primary financial relationship for our customers: where they spend, borrow, keep and move their money, with more control over all of it,” Zarik Nabi, Chief Commercial Officer at Tabby, told Arabian Business in an exclusive interview.

The comments come as Tabby announced on Monday that more than one million UAE residents had opened a Tabby Cash account since the product became available to all residents on September 1, making it the fastest-growing product in the company’s history.

The service allows customers to hold funds, make payments and transfer money locally and internationally without account or card fees. It operates under a Stored Value Facilities licence issued by the Central Bank of the UAE.

The BNPL provider has also introduced international transfers to bank accounts in more than 50 countries without transfer fees, alongside transfers to digital wallets including GCash, JazzCash and Vodafone Cash.

Customers can split telecom, utility and transport bills into as many as 12 monthly payments, while approved refunds on Tabby purchases can be credited instantly to their Tabby Cash accounts.

Tabby sets sights on traditional banks

Asked whether Tabby intends to seek a full digital banking licence and compete directly with established lenders, Nabi stopped short of confirming any plans to become a licensed bank.

“What we offer is shaped by the licences we hold, and we will keep building within them,” he said.

“Banks, wallets and fintechs are all part of the landscape we compete in, because we are all competing for where people spend and keep their money. That is healthy for the market, and ultimately it benefits customers.”

The company’s ambitions come as digital banks and financial technology firms compete for a greater share of the UAE’s retail financial services market, particularly in payments, remittances and everyday spending.

The fintech company declined to disclose how much money customers currently hold in Tabby Cash accounts or how many of the one million accounts are actively being used.

However, Nabi said early transaction patterns suggest customers are increasingly using the service for everyday purchases rather than exclusively online shopping.

“Nearly half of what people spend on the Tabby Cash card goes on groceries and eating out, and four out of five payments happen in a shop rather than online,” he said.

He added that about half of customers who use Tabby Cash to send money internationally for the first time make another transfer the following month.

The company also offers cashback of up to 3 per cent on selected spending categories and international purchases.

No immediate plans for regional expansion

Despite the rapid uptake of Tabby Cash in the UAE, the company is prioritising growth in its existing markets over expansion into new countries.

“Geographic expansion isn’t our priority right now. Saudi Arabia and the UAE are our two core markets, and there is still a huge amount for us to build in both,” Nabi said.

“Our focus is on going deeper rather than wider: expanding the products we offer and deepening our relationship with the customers and businesses who already use Tabby, using the licences we now hold in both markets.”

Headquartered in Riyadh, Tabby currently serves more than 25 million customers across Saudi Arabia, the UAE and Kuwait and works with over 70,000 brands, including Amazon, IKEA, Adidas and noon.

The company raised $233 million in September in a funding round led by Blue Pool Capital, valuing the business at $6.5 billion.

What about Tabby’s IPO?

The latest expansion also comes amid continued questions over when the company could pursue an initial public offering.

Asked whether Tabby could list as early as 2027 following its latest funding round, Nabi declined to provide a timetable but said the company was preparing for a potential listing.

“We’re building the company to be ready when the moment makes sense. We are profitable and well capitalised, so fortunately we don’t need to force the timing,” he said.

As for the next stage of Tabby’s financial services expansion, Nabi suggested the company is exploring additional products beyond its existing payment and money transfer offerings, although he did not confirm plans for salary accounts, savings products or new lending services.

“If it’s something you do with your money today, it’s fair to assume we’re working out how to do it better,” he said.

“Tabby started as a way to split payments at checkout. Today people also use it for everyday spending and sending money home or around the corner.”