Latest Blog How to Build an App Like Tabby: Business Model, Features, and Cost

The UAE’s digital landscape is dynamic, with consumers increasingly embracing innovative financial solutions that offer flexibility and control. Among these, Buy Now, Pay Later (BNPL) services have surged in popularity, with Tabby emerging as a prominent player. Suppose you’re looking to tap into this thriving market. In that case, understanding “how to build an app like Tabby UAE” requires a deep dive into its business model, key features, associated costs, market statistics, and the crucial regulatory environment.

This comprehensive guide will walk you through the essential steps and key considerations for developing a successful Buy Now, Pay Later (BNPL) app in the UAE, mirroring Tabby’s impactful strategy.

The Rise of BNPL in the UAE: A Market Snapshot

The Buy Now, Pay Later market in the United Arab Emirates is experiencing robust growth. The UAE BNPL payment market is expected to grow by 15.6% annually to reach US$2.84 billion in 2025. Furthermore, it’s projected to expand from its 2024 value of USD 2.45 billion to approximately USD 4.82 billion by the end of 2030, with a Compound Annual Growth Rate (CAGR) of 11.2% during 2025-2030. Another projection values the UAE BNPL services market at USD 4.25 billion in 2025 and anticipates it to reach USD 9.84 billion in 2030, reflecting an 18.29% CAGR over 2025-2030.

This growth is fueled by several factors:

• High e-commerce penetration: A digitally native population, especially millennials and Gen Z, are comfortable with online transactions. These younger demographics are driving significant portions of the UAE BNPL market’s growth.
• Demand for flexible payment options: Consumers are increasingly opting for installment-based transactions as an alternative to traditional credit cards, seeking short-term, interest-free financing.
• Diversification into new sectors: BNPL is expanding beyond traditional retail into areas like automotive, healthcare, and education, driven by the demand for manageable payments on higher-value transactions.
• Supportive regulatory framework: Recent regulations from the Central Bank of the UAE aim to enhance transparency and protect consumers, lending credibility to the sector.
• Strategic partnerships: Major BNPL providers like Tabby, Spotii, and Postpay are forming partnerships with retailers across various sectors, widening access to flexible financing solutions.

Tabby itself has seen significant user engagement. As of June 2022, Tabby’s app attracted 2 million active shoppers, driving 26 million clicks to its retail partners in the preceding year. It ranked among the top 10 shopping apps on the App Store in Saudi Arabia and the UAE, with 500,000 new users installing the app monthly to discover stores and deals. These statistics underscore the immense potential for a well-executed BNPL app in the UAE.

Tabby’s Business Model: The Engine of Its Success

Tabby’s business model is primarily a Buy Now, Pay Later (BNPL) solution that creates a win-win scenario for both consumers and merchants. It allows consumers to split their purchases into multiple, interest-free installments, while providing significant benefits to retailers.

Here’s a breakdown of Tabby’s core business model and revenue streams:

1. Merchant Commissions (Primary Revenue Driver)

• How it works: Retailers partner with Tabby to offer its payment option at checkout, both online and offline. For each transaction completed via the Tabby platform, retailers pay a commission fee to Tabby. This fee is typically a percentage of the total transaction amount, often ranging from 3% to 6%, which is higher than standard credit card fees.
• Why merchants pay: While it’s a cost, merchants gain substantial benefits. BNPL services like Tabby significantly increase conversion rates, boost average order values (consumers are more likely to spend more when they can pay in installments), and enhance customer loyalty. It helps them attract new customers and drive sales.

2. Late Payment Fees (Secondary Revenue Stream)

• How it works: While Tabby is advertised as “interest-free” for consumers who adhere to payment schedules, late payment fees are applied if customers fail to make their installments on time. These fees act as both a revenue source for Tabby and an incentive for users to make timely repayments.

3. Data Monetization

• How it works: With user consent, BNPL apps collect valuable data on consumer spending habits, preferences, and creditworthiness. This aggregated and anonymized data can be monetized by creating reports and insights for other enterprises, helping them understand consumer behavior and market trends.

4. In-App Advertising & Cross-Selling

• How it works: Tabby leverages its platform to feature products and promotions from partner merchants, essentially acting as an online marketplace. It can also generate revenue through in-app advertising, providing a space for other brands to promote their products. Furthermore, cross-selling opportunities for other financial products (e.g., credit cards, loans from partner banks) can be a source of commission.

5. Strategic Partnerships

• How it works: Tabby partners with various financial institutions and e-commerce platforms, integrating its BNPL services. These collaborations can lead to revenue-sharing models or partnership agreements.

Tabby’s success lies in its commitment to user convenience (zero interest, no hidden fees for timely payments) and financial empowerment, which translates into increased purchasing power for consumers and sales growth for merchants. Its robust data analytics and machine learning algorithms play a crucial role in real-time risk assessment and fraud detection.

Core Features to Build an App Like Tabby UAE

To emulate Tabby’s success, your BNPL app needs a robust set of features catering to both consumers and merchants.

For Consumers (User App):

Seamless Onboarding & Account Management:

• Quick Sign-up/Sign-in: Easy registration via email and phone number, possibly with OTP (One-Time Password) verification.
• Profile Management: Users can view and edit personal details, linked payment methods, and address.
• Identity Verification (KYC/AML): Automated Know Your Customer (KYC) and Anti-Money Laundering (AML) processes to comply with financial regulations and prevent fraud. This often involves submitting government-issued IDs and real-time facial scans.

Shop & Discover:

• Merchant Directory: A curated list of partner stores and brands, categorized for easy Browse.
• Product Search & Discovery: Users can search for specific products, compare prices, and discover deals.
• Exclusive Deals & Promotions: Showcase discounts, coupons, and special offers from partners.
• In-Store Map: (If applicable) Help users find nearby physical stores that accept your BNPL service.

Payment & Installment Management:

• Instant Credit Check: A swift, automated process leveraging internal behavioral scoring and potentially credit bureau integrations to determine user eligibility and spending limits at checkout.
• Flexible Payment Splitting: Core BNPL functionality allowing users to split purchases into various interest-free installments (e.g., 2, 3, or 4 payments).
• Payment Scheduling: Clear display of installment dates and amounts.
• Automatic Deductions: Secure integration with user’s debit/credit card for automated recurring payments.
• Manual Payment Option: Ability to make payments manually before the due date.
• Payment Reminders & Notifications: Push notifications for upcoming payments, successful deductions, or missed payments.
• Purchase History: A clear overview of all past purchases and payment statuses, including a visual timeline.

Cashback & Rewards Program:

• Cashback Earnings: Users earn cashback on purchases made through the app with partner merchants.
• Redemption Options: Clear mechanism for users to redeem their earned cashback.
• Referral Program: Encourage new user acquisition by rewarding users who invite friends.

Security & Privacy:

• Data Encryption: Bank-level encryption (e.g., AES-256) for all financial data, both in transit and at rest.
• Multi-Factor Authentication (MFA): Added security for logins and transactions, possibly including biometric authentication (fingerprint/Face ID).
• Fraud Detection Systems: AI-powered algorithms to analyze user behavior, detect anomalies, and prevent fraudulent activities in real-time.
• Tokenization: Replace sensitive card data with unique tokens to enhance payment security.

Customer Support:

• In-App Chatbot/Live Chat: Instant support for queries and issues.
• Comprehensive FAQ Section: Easily searchable answers to common questions.

For Merchants (Merchant Portal/API):

Merchant Onboarding & Account:

• • Streamlined Registration: Easy process for retailers to sign up and integrate their stores.
  • Dedicated Dashboard: Overview of transactions, sales driven by BNPL, and customer analytics.

Integration Solutions:

• • Robust API/SDK Integration: Seamless integration with various e-commerce platforms (e.g., Shopify, WooCommerce, Magento, custom platforms) and Point-of-Sale (POS) systems for in-store transactions.
  • Webhooks: Real-time notifications for transaction updates, refunds, and order statuses.

Transaction Management:

• • Real-time Transaction Tracking: Monitor BNPL purchases, approvals, and settlements.
  • Refund & Return Management: Tools to easily process refunds and adjustments within the portal.

Analytics & Reporting:

• • Sales Performance: Detailed data on sales performance attributed to the BNPL option, conversion rates, and average order values.
  • Customer Insights: Understand purchasing behavior of customers using your service to optimize sales strategies.
  • Settlement Reports: Clear reconciliation of payments received from the BNPL provider.
  • Reporting for Credit Bureaus: Automated generation and submission of required reports to credit bureaus.

Marketing & Promotion Tools:

• • Visibility within the App: Opportunities for merchants to be featured in the BNPL app’s marketplace or discovery section.
  • Promotional Campaign Setup: Tools to create and manage special offers and discounts specifically for your BNPL users.

Steps to Building Your Tabby-Like App

Developing a fintech app is a multi-stage process that demands meticulous planning and execution.

Phase 1: Discovery & Planning (2-5 Weeks)

Define Your Niche & Value Proposition:

• What specific problem are you solving for UAE consumers and merchants?
• How will your BNPL app differentiate itself from existing players like Tabby, Postpay, and Spotii? Will you target a specific segment (e.g., high-value items, specific industries like automotive/healthcare)?
• Clearly define your target audience (demographics, spending habits, needs).

Comprehensive Market Research & Competitor Analysis:

• Deeply analyze Tabby’s features, pricing, merchant network, and user experience.
• Study other BNPL providers in the UAE. Identify their strengths, weaknesses, and market gaps.
• Understand consumer behavior and preferences in the UAE regarding digital payments and credit.

Legal & Regulatory Compliance (Crucial First Step for Fintech):

• Engage Legal Counsel: This is non-negotiable. Hire lawyers specializing in UAE financial regulations, particularly those from the Central Bank of the UAE (CBUAE) regarding BNPL services.
• Licensing: Understand the specific licensing requirements for BNPL providers in the UAE. This might involve applying for a Restricted License Finance Company or partnering with an already licensed bank or finance company.
• KYC/AML: Plan for robust Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance procedures from day one.
• Data Protection: Ensure adherence to data protection laws, such as the DIFC Data Protection Law 2020.

Define Core Features (MVP Scope):

• Prioritize essential features for your Minimum Viable Product (MVP) to get to market quickly and gather feedback. What are the absolute must-haves for both consumers and merchants?

Technology Stack Selection:

• Decide on the core technologies: native vs. cross-platform for mobile, backend languages, database, and cloud infrastructure. Consider scalability, security, and developer availability in the UAE.

Team Assembly:

• Identify key roles: Project Manager, Business Analyst, UI/UX Designers, iOS Developers, Android Developers, Backend Developers, QA Engineers, DevOps Engineer, Security Specialist. Decide on an in-house, outsourced, or hybrid model.

Phase 2: UI/UX Design & Prototyping (3-6 Weeks)

1. User Flow Mapping: Create detailed user flows for both the consumer app (e.g., sign-up, shopping, payment) and the merchant portal (e.g., onboarding, transaction view).
2. Wireframing: Develop low-fidelity wireframes to outline the basic layout and functionality of each screen.
3. Prototyping: Create interactive prototypes that simulate the app’s functionality. This allows for early testing and feedback without writing code.
4. High-Fidelity UI Design:
   • Design the visual elements: color schemes, typography, iconography, and overall branding.
   • Focus on a clean, intuitive, and trustworthy design, paramount for a financial app. Ensure ease of navigation and clear presentation of financial information.
   • Create detailed mockups for every screen, adhering to platform-specific guidelines (iOS Human Interface Guidelines, Android Material Design).
5. Design System Development: Create a reusable library of UI components to ensure consistency and accelerate future development.

Phase 3: Backend Development (8-16+ Weeks)

1. Database Architecture: Design a secure and scalable database schema to manage user data, transactions, merchant information, payment schedules, etc.
2. API Development: Build robust APIs (Application Programming Interfaces) to enable seamless communication between the mobile app, merchant portal, and third-party services.
3. Core Logic Implementation: Develop the complex business logic, including:
   • Credit scoring algorithms (real-time risk assessment).
   • Payment splitting and installment calculation.
   • Late payment fee calculation and application.
   • Fraud detection mechanisms (leveraging AI/ML).
   • User authentication and authorization modules.
4. Security Measures: Implement multi-layered security protocols:
   • Data encryption (in transit and at rest).
   • Secure API endpoints and authentication.
   • Protection against common vulnerabilities (OWASP Top 10).
   • Regular security audits and penetration testing.
5. Third-Party Integrations: Integrate with essential external services:
   • Payment Gateways: Securely connect with local and international payment processors (e.g., Stripe, Checkout.com, local UAE payment solutions).
   • Credit Bureaus: Integrate with credit reporting agencies for eligibility checks (ensure compliance with data sharing regulations).
   • E-commerce Platforms: Develop robust APIs/SDKs for popular platforms like Shopify, Magento, WooCommerce, and custom e-commerce solutions.
   • KYC/AML Providers: Integrate with identity verification services.
   • SMS/Email Services: For notifications and transactional communications.
   • Cloud Services: Configure scalable cloud infrastructure (AWS, Azure, Google Cloud) for hosting and backend operations.

Phase 4: Frontend Development (Mobile & Web) (8-16+ Weeks)

1. Mobile App Development (iOS & Android):
   • Implement the UI designs for both platforms using native languages (Swift/Kotlin) or a cross-platform framework (React Native/Flutter).
   • Integrate with the developed backend APIs.
   • Implement all consumer-facing features: onboarding, shopping, payment flow, profile, cashback, notifications.
2. Merchant Portal Development (Web):
   • Build a secure and intuitive web-based portal for merchants using modern web frameworks (e.g., React, Angular, Vue.js).
   • Implement all merchant-facing features: dashboard, transaction management, reporting, and integration guides.

Phase 5: Testing & Quality Assurance (QA) (4-8 Weeks)

1. Functional Testing: Ensure all features work as designed according to specifications.
2. Performance Testing: Check app responsiveness, stability, and scalability under various load conditions.
3. Security Testing: Conduct rigorous penetration testing, vulnerability assessments, and compliance checks (e.g., PCI DSS if handling card data directly).
4. Usability Testing: Gather feedback from real users to identify pain points and areas for improvement in the UI/UX.
5. Integration Testing: Verify seamless communication between all integrated systems (app, backend, third-party APIs).
6. Regression Testing: Ensure new changes don’t break existing functionalities.

Phase 6: Deployment & Post-Launch (Ongoing)

1. App Store Submission: Prepare your app for submission to the Apple App Store and Google Play Store, adhering to their guidelines. This includes creating compelling app descriptions, screenshots, and privacy policies.
2. Merchant Onboarding & Support: Roll out the merchant integration process and provide dedicated support.
3. Launch Marketing: Execute your pre-planned marketing and user acquisition campaigns to drive initial adoption.
4. Monitoring & Analytics: Continuously monitor app performance, user engagement, and financial metrics. Use analytics tools to gather insights.
5. Maintenance & Iteration: Provide ongoing technical support, bug fixes, security updates, and implement new features based on user feedback, market trends, and evolving regulations. This is a continuous process for a successful fintech app.

Building an app like Tabby in the UAE is an ambitious but rewarding endeavor. By understanding its successful business model, meticulously planning your features, anticipating development costs, and navigating the complex regulatory landscape, you can position your BNPL solution for significant digital influence and market share in one of the world’s most rapidly growing fintech hubs.

The Cost to Build an App Like Tabby UAE

Developing a robust fintech app like Tabby in the UAE involves significant investment. The cost is not a fixed figure but depends heavily on the app’s complexity, the chosen features, technology stack, development team’s location, and hourly rates, and ongoing maintenance.

Here’s an estimated breakdown:

Factors Influencing Cost:

App Complexity & Features:

• Minimum Viable Product (MVP): An MVP with core features (user registration, basic payment splitting, limited merchant integration) might cost AED 110,000 – AED 220,000. This is ideal for initial market validation.
• Moderately Complex App: Adding features like cashback, more advanced analytics, a wider range of integrations, and refined UI/UX pushes the cost to AED 220,000 – AED 550,000.
• Highly Complex App (Like Tabby): To build a full-fledged app with all of Tabby’s functionalities, including sophisticated AI/ML for credit scoring and fraud detection, robust security architecture, extensive third-party integrations, and comprehensive merchant dashboards, expect costs in the range of AED 550,000 – AED 920,000+.

Development Team Location and Size:

• UAE-based Developers: Hiring a local team offers advantages in communication, cultural understanding, and often easier in-person collaboration. However, hourly rates are typically higher, ranging from AED 220 to AED 367+ per hour. A full team (project manager, UI/UX designers, backend developers, frontend developers, QA engineers) will quickly accumulate costs.
• Nearshore (e.g., Eastern Europe): Rates are generally more competitive, from AED 110 to AED 275 per hour.
• Offshore (e.g., India, Pakistan): Often the most cost-effective option, with hourly rates from AED 73 to AED 183 per hour. Many UAE companies leverage offshore talent for backend development and routine tasks while maintaining local project management.

Technology Stack:

• Frontend (Mobile Apps): Native development (Swift for iOS, Kotlin/Java for Android) typically offers the best performance and UI/UX but requires two separate codebases. Cross-platform frameworks like React Native or Flutter can reduce development time and cost by sharing code, but might have limitations for highly complex native features.
• Backend: Robust and scalable languages like Node.js, Python, or Go are common for fintech.
• Databases: Secure and high-performance databases such as PostgreSQL or MongoDB.
• Cloud Infrastructure: Services like AWS, Azure, or Google Cloud for hosting, scalability, and security.

UI/UX Design Sophistication:

A superior user interface and user experience are critical for fintech app adoption. Custom, intuitive, and visually appealing design for both consumer and merchant interfaces can cost anywhere from AED 36,700 to AED 183,500+, depending on complexity and iterative design cycles.

Third-Party Integrations:

Each integration adds to development time and cost. This includes:

• Payment Gateways: Connecting with multiple local and international payment processors.
• Credit Bureaus: For real-time credit checks and risk assessment.
• E-commerce Platforms: APIs for Shopify, Magento, WooCommerce, etc.
• SMS/Email Providers: For notifications and transactional communications.
• KYC/AML Providers: Such as Onfido or ShuftiPro.
• Analytics Tools: For tracking user behavior and app performance.

Security & Compliance:

This is non-negotiable for a fintech app. Implementing bank-grade security measures, robust fraud detection systems, and ensuring compliance with CBUAE regulations (e.g., data encryption, secure APIs, penetration testing, regular security audits) involves significant specialized effort and associated legal consultation fees.

Testing & Quality Assurance (QA):

Thorough testing, including functional, performance, security, and user acceptance testing, is vital. This phase can take 2-4 weeks or longer for complex apps.

Post-Launch Maintenance & Support:

This is an ongoing operational cost, typically estimated at 15-20% of the initial development cost annually, covering bug fixes, updates, and server maintenance.

Estimated Timeline: Building a functional BNPL app (from MVP to a feature-rich version) can take anywhere from 6 to 18+ months for initial development, followed by continuous updates and iterations based on market feedback and regulatory changes.

Conclusion

Developing a BNPL app like Tabby in the UAE offers significant potential in a booming e-commerce market. While it requires substantial investment in development and strict adherence to CBUAE regulations, the opportunity for strong growth and digital influence is clear. By focusing on a secure, scalable platform and key partnerships, your app can thrive by empowering both consumers and retailers in the dynamic UAE economy. The future of flexible payments is here, and your app can lead the way.