- Tabby and Tamara cover everyday baskets. Cashew covers bigger purchases with monthly plans of up to 12 months.
- UAE BNPL is capped at AED 20,000 or three months' net income per shopper, with total fees capped at 30% of the amount.
- There's no regulatory minimum order. Any minimum is set by the provider or by you.
- Shopify Payments and Stripe don't include Tabby or Tamara. Add them as apps, or through a gateway such as Checkout.com, Telr or Tap.
- VAT of 5% applies to the provider's fee, not to your order.
Tabby was born in Dubai in 2019. Today, splitting a payment into four is a normal part of shopping online in the UAE, especially for under-35s.
That makes BNPL an easy win for a UAE store. Shoppers know the logos, the rules are clear and the provider takes the credit risk.
The choice is also short, because two big providers cover everyday baskets, and one specialist covers big-ticket purchases paid monthly.
Here's how the UAE rules, gateways and costs work for your store. For other Gulf countries, see our main list of BNPL providers in the Middle East.
Does your UAE store need a BNPL provider?
Yes, if you run your own website. UAE shoppers mostly pay with Apple Pay and cards, so BNPL earns its place on the bigger baskets: fashion, beauty, electronics and home.
Here's when it pays off most:
- Your average basket is above about AED 200. That's where splitting the payment starts to change the decision.
- You sell to younger shoppers. BNPL is most popular with under-35s.
- You want fewer COD orders. Every BNPL order is paid upfront by the provider, so there's no cash to collect and no failed doorstep delivery.
How do the UAE Central Bank's BNPL rules work?
The UAE Central Bank (CBUAE) regulates BNPL as short-term credit, under a framework in force since 27 December 2023. Like Saudi Arabia's rules, it's written for providers, but it shapes your checkout:
| CBUAE rule | What it means for your store |
|---|---|
| Providers need a finance licence or a licensed bank partner | Ask which licensed entity you're contracting with |
| Credit capped at AED 20,000 or three months' net income | Very large baskets may not be approved |
| Plans of up to 12 months, no interest | Pay-in-4 and monthly plans both fit |
| All shopper fees, including late fees, capped at 30% | Fees are the provider's business, not yours |
| AECB credit check above AED 5,000 | Approval may take an extra step on big orders |
| No minimum purchase in the rules | You and your provider set any minimum |
That last row clears up a common question. In January 2025, some UAE stores showed an AED 300 minimum for BNPL. Tabby said it hadn't set a new minimum and that, in rare cases, partner brands set their own.
Unlike Saudi Arabia, the UAE rules don't include a merchant surcharge article. Provider contracts still forbid it: Tamara's merchant terms ban surcharges in every country.
Which gateways connect Tabby and Tamara in the UAE?
You can sign with each BNPL provider directly, or reach them through your payment gateway. Either way, the provider still reviews and approves your store before you go live.
| Tabby | Tamara | Notes | |
|---|---|---|---|
| Shopify app (direct) | Free to install, fees billed separately | ||
| Checkout.com | One contract for cards and GCC methods, for larger merchants | ||
| Telr | UAE gateway, published card pricing | ||
| Tap Payments | GCC gateway, strong in Kuwait too | ||
| Stripe UAE | Cards, Apple Pay, Google Pay and Link only | ||
| Shopify Payments | Add BNPL as separate apps |
The gateway route suits stores that want one dashboard for every method. The direct route gives you a separate contract and rate with each provider.
Comparing gateways too? See our list of payment gateways in the UAE.
What does BNPL cost a UAE store?
Rates are set by contract, and no provider publishes them. For Tabby, sellers report about 3–5% plus a fixed AED 1 per order. Tamara usually lands at 4–6%.
On top, you pay 5% VAT on the provider's fee. Shopify adds its third-party fee to BNPL apps, even when Shopify Payments handles your cards.
Worked example: an AED 600 pair of headphones
Say a Dubai electronics store sells AED 600 headphones through Tabby at 4%:
| Line | Own site, no platform fee (AED) | Shopify Basic (AED) |
|---|---|---|
| BNPL fee at 4% | 24.00 | 24.00 |
| Fixed fee per order | 1.00 | 1.00 |
| 5% VAT on the BNPL fees | 1.25 | 1.25 |
| Shopify third-party fee at 2% | – | 12.00 |
| Total cost | 26.25 (4.4%) | 38.25 (6.4%) |
On Shopify Grow the platform line halves to AED 6. Tamara users should also watch payouts: weekly payouts under AED 2,500 carry an AED 25 bank charge.
The full fee breakdown is in Tabby and Tamara merchant fees.
BNPL providers in the UAE
The three providers below serve UAE shoppers. They were independently researched and are listed in no particular order.
Tabby
Best for: Fashion, beauty and electronics stores in KSA/UAE that want the largest BNPL user base
- 25 million registered users and ~70,000 merchants (Sep 2026)
- >US$18bn annualised transaction volume; valued US$6.5bn (Series F, Sep 2026)
- SAMA BNPL licence (Tabby Finance, Nov 2025); says profitable since 2023
Tamara
Best for: KSA-first merchants and anyone needing Bahrain coverage
- ~20 million customers and 87,000+ merchants (Sep 2025)
- Saudi Arabia's first fintech unicorn (US$1bn, Dec 2023); US$2.4bn asset-backed facility (Sep 2025)
- Weekly Tuesday payout, guaranteed even if the shopper doesn't pay
Cashew Payments
Best for: UAE sellers of high-ticket items (furniture, electronics, medical) above typical Pay-in-4 limits
- Targets larger tickets: healthcare (Hazel), auto, education, home
- Partners named: Mediclinic, Samsung, du, Landmark, Chalhoub
Which provider fits which UAE store?
Each one covers a different kind of basket:
- Tabby. Founded in Dubai, with 25 million registered users across its markets, it's a natural first pick for fashion, beauty and electronics.
- Tamara. CBUAE-licensed since October 2025, it pays out every Tuesday and charges shoppers no late fees.
- Cashew. Built for bigger tickets, with monthly plans of up to 12 months, it works with Mashreq to finance amounts above standard limits.
Can't decide between the first two? Our Tabby vs Tamara comparison puts them side by side.
How do you launch BNPL in a UAE store?
Pick your route, get two written rates, then go live and measure. The paperwork takes longer than the setup, so start it first.
- 1
Prepare your documents
Your trade licence, a UAE bank account in AED, your store link and a returns policy.
- 2
Choose direct or gateway
Use the Shopify apps or the providers' plugins, or ask your gateway whether it already connects Tabby and Tamara.
- 3
Apply to two providers
Ask each for a written rate for your category and volume, plus the payout schedule.
- 4
Add the widgets
Show the instalment amount on product and cart pages with each provider's official widget.
- 5
Test with a live order
Place a small real order and refund it. Tamara's Shopify app has no test mode.
- 6
Measure for a month
Track BNPL share of orders, average order value and COD share. Add Cashew if big baskets keep failing approval.
What should you ask a UAE BNPL provider?
Put these to every provider on your shortlist. They focus on what's specific to the UAE:
Notes for free zone companies
- Selling online from a free zone is common. Get the zone's written confirmation that your activity covers delivery to UAE shoppers.
- Providers check your licence. Make sure the activity on your trade licence matches what you sell.
- Still setting up? Compare company formation consultants in the UAE.
Notes for UAE stores selling into Saudi Arabia
- Saudi shoppers fall under SAMA's rules. That means SAR checkout, one price for every payment method and no BNPL fee.
- The cap is different. Saudi shoppers can owe up to SAR 10,000 across all BNPL apps.
- Local options differ too. See BNPL providers in Saudi Arabia.
Get BNPL quotes for the UAE
Share your store details once. We'll match you with BNPL providers that fit your platform and basket size.
Frequently asked questions
Tabby holds a UAE Central Bank Stored Value Facility licence for its Tabby Cash wallet. Tamara received a UAE Central Bank restricted finance licence in October 2025. Under the CBUAE framework, BNPL credit needs a finance licence or a licensed bank partner, so ask each provider which entity finances your shoppers.
Sources & further reading
- CBUAE regulatory framework for short-term lending — Hadef & Partners
- Tamara secures Central Bank UAE approval — Tamara
- Tabby says no new minimum as some online UAE stores set AED300 order threshold — InFocus UAE
- Tabby Business Help: pricing — Tabby
- Tamara Shopify plugin — Tamara
- Cashew Payments — Cashew
- Shopify Payments supported countries — Shopify
- Dubai's ecommerce market to reach $13 billion by 2029 — Digital Commerce 360
This guide is for general information only and is not legal, tax or financial advice. Rules and fees change — always confirm with the official source or a licensed advisor.
Maya is MiddleEastEcom's lead guide and editor. She researches GCC marketplaces, payments and regulations and turns them into practical playbooks for sellers.
Meet Maya