Tabby vs Tamara Fee Calculator

How Tabby and Tamara Conquered Gulf eCommerce

Prior to 2020, eCommerce in the Gulf Cooperation Council (GCC) was hindered by a critical bottleneck: Cash on Delivery (COD). Over 65% of online retail purchases in Saudi Arabia and the United Arab Emirates were executed via COD, resulting in catastrophic return-to-origin (RTO) rates of 20% to 35%, driver handling theft, and severe working capital delays.

Tabby and Tamara dismantled the COD barrier by offering seamless Buy Now Pay Later (BNPL) checkout. By allowing consumers to split transactions into 4 interest-free installments while guaranteeing instant upfront funds to merchants, both platforms eliminated COD risk entirely while propelling the GCC into one of the world's fastest-growing digital commerce markets.

The True Cost of a 5.99% MDR: Dissecting Fixed Fees and 15% VAT

Many retailers look only at the headline 5.99% rate without calculating the impact of fixed transaction authorisations and statutory indirect taxes:

Why Paying 6% MDR Generates Higher Net Profits than 1.5% Mada

At first glance, surrendering 7% in total deductions seems counterintuitive when Saudi Mada debit cards process at ~1.38%. However, retail unit economics depend on incremental gross profit dollars:

Consider a fashion merchant with a 40% gross operating margin:

• Mada Checkout: Customer spends 250 SAR. Gross profit = 100 SAR. Processing cost = 3.50 SAR. Net contribution = 96.50 SAR.
• BNPL Checkout: Customer adds higher-ticket items because of Pay in 4, spending 450 SAR (an 80% AOV lift). Gross profit = 180 SAR. BNPL deduction (7.1%) = 32.00 SAR. Net contribution = 148.00 SAR.

By offering BNPL, the merchant captured an additional 51.50 SAR in pure gross profit per order, completely overcoming the fee premium.

Riba-Free Consumer Installments Certified by Sharia Supervisory Boards

In Muslim-majority markets like Saudi Arabia, religious compliance is an absolute consumer prerequisite. Both Tabby and Tamara underwent rigorous auditing by premier Islamic scholars:

• Zero Consumer Interest (Riba): The installment schedule is 100% interest-free. The consumer pays exactly the retail sticker price divided into equal installments.
• Late Fee Charity Donation: In conventional finance, late fees are compounding interest. In Sharia-compliant BNPL, late administrative fees are strictly capped to discourage default, and surplus penalty funds are donated directly to approved humanitarian charities.

Upfront Cash Settlement with Complete Underwriting Immunity

Unlike store credit lines or layaway plans of the past, Tabby and Tamara operate under a non-recourse factoring model.

Once an order is shipped and tracking is verified:

1. The BNPL provider disburses 100% of the net transaction value directly into your business bank account within 24 to 48 hours.
2. The provider assumes full legal ownership of the consumer receivable. If the buyer defaults on payments 2, 3, or 4 due to job loss or insolvency, the provider absorbs the write-off. The merchant never faces chargebacks or claws back for consumer non-payment.

Saudi Arabian Native Ecosystem Dominance

Saudi Arabia's domestic eCommerce is powered largely by two homegrown platforms: Salla and Zid.

Both Tabby and Tamara have developed pre-built, one-click apps integrated directly into the Salla and Zid app markets. Merging these checkout buttons requires zero developer code. Furthermore, in-store POS integrations allow omnichannel Saudi retailers with physical shops in Riyadh Park or Red Sea Mall to offer Pay in 4 at the cash register via dynamic tablet QR codes or Tabby Card tap-to-pay.

Why Leading GCC Brands Enable Both Tabby AND Tamara