Buy now, pay later: how Tabby and Tamara work, and what to watch for

The short version

Tabby and Tamara let you split a purchase into instalments: the first at checkout, the rest monthly.
Both describe their plans as interest-free and Sharia-compliant, but some plans carry a processing fee, shown at checkout.
What happens if you pay late depends on the country and the plan, and repeated late payments can hurt your credit record.
Instalments are a way to spread a payment, not a reason to buy something you don’t need.

How it works

At a participating store you choose Tabby or Tamara at checkout, sign up with your phone number and ID, and link a card. Approval usually takes moments. You pay the first instalment straight away and the rest are taken from your card on schedule. The store receives the full amount from the provider and pays the provider a fee, which is how these services mainly make money.

Tabby

Tabby’s Saudi site says you can split purchases into 3 or 4 monthly payments, online or in store. The first is collected at purchase and the rest on the same day each month. According to its FAQ, splitting in 3 carries no fees or interest, while splitting in 4 may carry a 1% processing fee, shown in your payment schedule before you confirm.

In December 2023, Tabby removed late fees on Pay in 4 in Saudi Arabia. Miss a payment and your account is paused for new purchases, and repeated late payments may be reported to credit bureaus. In the UAE, Tabby says customers may be charged collection fees for missed payments. Check the terms for your country specifically.

Tamara

Tamara lets you split purchases into several payments and describes itself as having no late fees and being Sharia-compliant. Its help centre explains that a processing fee may apply to payment plans, covering order processing, ID verification and credit checks. The fee is shown at checkout and spread across your payments. You need to be over 18, with a valid phone number, ID and payment card in Saudi Arabia, the UAE or Kuwait, and availability varies by store.

Plan options such as the number of payments and the minimum and maximum amounts vary between stores, so read what checkout shows you.

Returns and refunds

To return something bought in instalments, request the return from the store under its normal policy. The store notifies the provider, which updates your plan and refunds what’s due. Processing fees may not be refundable, and some stores will only refund through the instalment provider.

Does it work with discount codes?

Usually, yes. The code applies to your basket before you pick a payment method. Bank offers are different: many instant discounts require paying with a particular bank’s card and may not apply if you choose instalments. Read the bank offer’s terms first.

When instalments make sense

You’re buying something you need and would have bought anyway.
The upcoming payments fit comfortably in your monthly budget.
The plan is fee-free, or the fee is clear and acceptable to you.

When to skip them

The instalments are the only reason you’re buying.
You already have several open plans and struggle to track due dates.
Your income over the next few months is uncertain.

A practical habit: put each due date in your calendar, and make sure the linked card has funds before every payment.

Information is from Tabby’s and Tamara’s official pages at the time of writing. Terms and fees can change, so check what checkout shows you before confirming. Kobon isn’t affiliated with either company.

Common questions

Can I pay off early?

Both services generally let you settle remaining payments early in the app. Check the app for your plan’s options.

Sources

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