Step-by-Step Guide to Building a Tabby-Like App: Cost, Features & Alternatives

Why are so many shoppers ditching credit cards in favor of BNPL apps like Tabby?

That’s because they’re customer-first, fast, and friction-free, outpacing traditional finance tools in the UAE.

Tabby serves over 3 million customers, works with more than 800 merchant partners, and has raised $185 million in funding. 

An app like tabby in the UAE empowers users to split their purchases into interest-free installments. 

While customers enjoy financial flexibility, Tabby still makes money through merchants, smart partnerships, and a finely-tuned revenue model.

If you are a startup founder, fintech enthusiast, or entrepreneur seeking the next big opportunity, consider investing in our mobile app development company in Dubai now. 

In this write-up, we will guide you through building your own BNPL app, similar to Tabby, from the ground up. 

Additionally, we will break down its business model, monetization strategy, and development challenges, as well as the best alternatives to Tabby.

What is the Tabby App?

Tabby is a buy now, pay later app that lets users shop from major retailers and split their payments into smaller chunks, without paying interest. 

Regardless of whether they are purchasing fashion, electronics, or home goods, customers can spread the cost over four payments or delay it for up to 14 days.

Since launching in 2019, Tabby Buy Now Pay Later has partnered with top brands such as IKEA, SHEIN, and Adidas.

It has made shopping easy and effortless for millions across the UAE, Saudi Arabia, and beyond.

Here is a detailed overview of the Tabbys business model:

• User Base: Tabby boasts over 15 million registered users. 
• Merchant Network: They partner with over 40,000 sellers. 
• Annualized Sales Volume: Their annualized sales volume exceeds $10 billion. 
• Funding: Tabby has raised a total of $604 million in funding across 14 rounds, including a $160 million Series E round at a valuation of $3.3 billion. 
• App Usage: The Tabby app is used by 14 million active shoppers, driving 3.5 million clicks every month to thousands of retailers. 
• Valuation: Tabby’s valuation doubled to $3.3 billion following the completion of its Series E round. 
• Growth: Tabby has seen significant growth in the MENA region, with rapid adoption of BNPL services. 
• IPO Plans: Tabby is reportedly preparing for a potential initial public offering, with plans in the early stages of development. 
• Key Investors: Tabby’s investors include Blue Pool Capital, Hassana Investment Co., STV, and Wellington Management. 
• Services: Tabby offers BNPL services, digital spending accounts, payments, cards, and money management tools. 

How Does Tabby Work?

An app like Tabby allows customers to make purchases and pay in smaller installments without incurring any interest. 

It works impeccably for both online and in-store retailers, providing value to both shoppers and merchants. 

Here is how it works for each target group: 

For Shoppers (Customers)

If you are a random buyer who doesn’t know how to use buy now, pay later apps, it doesn’t have to be overwhelming. Here is how to use Tabby: 

Choose Tabby at Checkout

When shopping online or in-store with a Tabby partner (like IKEA, SHEIN, or Adidas), you’ll see “Pay with Tabby” as a payment option.

Select a Payment Plan

To get started with Tabby BNPL, you can either:

• Pay later in 4 interest-free installments
• Pay the full amount after 14 days (also interest-free)

Instant Approval

Tabby quickly checks your identity and creditworthiness using a soft credit check and basic info—no long forms or credit card required.

Pay Over Time

Once approved, your purchase is confirmed. Tabby pays the store on your behalf, and you repay Tabby on your chosen schedule via linked debit/credit card, Apple Pay, or bank transfer.

Get Reminders

Tabby sends you email or SMS reminders before each due date. Payments are auto-debited, so you don’t have to worry about missing one.

For Retailers (Merchants)

Integrate Tabby at Checkout

Businesses can integrate Tabby into their website or POS system. 

Tabby provides plug-ins for platforms like Shopify, WooCommerce, Magento, and more.

Offer Flexible Payments

Customers enjoy a better shopping experience with increased payment flexibility, resulting in higher conversion rates, larger cart sizes, and lower returns.

Get Paid Upfront

Even though customers pay later, Tabby pays merchants in full immediately, minus a small commission fee.

No Risk for Merchants

If a customer misses a payment, Tabby handles the risk and collection, not the retailer.

How to Build an App Like Tabby – Step-by-Step

Tabby has taken the Middle East by storm. 

Developing apps similar to Tabby involves more than coding—it requires a deep understanding of fintech, consumer behavior, and risk management. 

However, with the right approach, tools, and partners, you can successfully create your own tabby-like app in the UAE market.

Below is a proven development method for it:

1. Conduct Market Research

The process of creating an app like Tabby starts with a deep dive into your target. 

A thorough market assessment is useful for product strategy, feature set, risk management, and even for how you market the app.

You should start by exploring the existing buy now, pay later apps in the UAE market and think about the following aspects: 

• How consumers are using BNPL: Are they using it for fashion? Electronics? Groceries?
• What motivates them: Is it interest-free payments, instant approvals, or ease of use?
• What concerns they have: Are they worried about hidden charges, the impact on their credit score, or app security?

Take a look at what major apps similar to Tabby, like Tamara, Klarna, Afterpay, and even Apple Pay Later, are doing.

Identify their strength and weaknesses to fill the existing gaps in the market. 

Don’t ever overlook their customer feedback, available on the App Store, Google Play, and Glassdoor. 

Bonus read: Check out our recent blog, where we have explained the step-by-step process of developing an app like Talabat.

2. Understand Legal Requirements

Since apps like Tabby fall under the financial services category, it’s paramount to get your legal and regulatory groundwork right from the start. 

Each region has its own set of rules, and staying compliant will keep your buy-now, pay-later apps legally operational and trustworthy in the eyes of users and partners.

Now that your target market is the UAE, it’s wise to align your operations with the UAE Central Bank’s digital lending guidelines. 

The most important thing to determine here is to check for legal requirements related to your business model and whether it is permitted to charge interest.

You’ll also need to build your app with certain compliance frameworks in mind. 

For example, if you’re processing card payments, your platform must meet PCI-DSS standards to ensure that all financial data is securely handled. 

On top of that, AML and KYC processes must be in place to verify users and prevent fraud or illegal activities.

It’s a smart move to consult with a custom app developers who know the legal side of things early on — ideally before you start developing Apps like Tabby.

3. Define Your Business Model

It’s non-negotiable to define a clear business model for your BNPL app—this is essentially how tabby-type apps make money and deliver value. 

Begin by determining your primary audience, which can be consumers, businesses, or a combination of both. 

• B2B model: You focus on helping retailers drive more sales. You offer them tools to increase conversions and charge a commission per sale.
• B2C model: You build a user-first app with flexible payments, cashback, and exclusive deals, and monetize through affiliate commissions, premium features, or ads.
• Hybrid model: You offer seamless BNPL to users while providing merchants with powerful tools and analytics, and monetizing both sides.

You may also partner with banks and financial institutions to explore opportunities such as real-time credit scoring, lending support, or co-branded payment options. 

4. Plan Your Technology Stack

Choosing the right tech stack is one of the most crucial decisions you’ll make when building an app like Tabby. 

Your tech choices impact everything—performance, scalability, security, and even your ability to roll out features quickly down the road.

Here are the technologies for developing a Tabby application:

Component	Technologies	Purpose
Frontend	Flutte React Native Swift (iOS) Kotlin (Android)	To build a responsive, user-friendly mobile app interface
Backend	Node.js Django Spring Boot	Handles app logic, APIs, transactions, and integrations
APIs	RESTful APIs GraphQL	For structured and flexible communication between the frontend and backend
Database	PostgreSQL MongoDB	Stores user data, transaction records, and payment schedules
Cloud Hosting	AWS Google Cloud- Microsoft Azure	Scalable, secure, and reliable cloud infrastructure
Orchestration	Kubernetes	Manages and scales containers across cloud infrastructure
CI/CD Pipelines	GitHub Actions Jenkins GitLab CI/CD	Automates build, test, and deployment cycles for faster releases

5. Design an Intuitive UI/UX

When it comes to apps like Tabby, user experience can make or break your success. 

Your customers would expect a smooth, transparent, and reassuring experience from start to finish. 

A well-designed interface not only increases conversions but also builds long-term loyalty. 

Your users should never feel confused or anxious when using the app — they should feel in control and informed at every step. 

That’s the kind of experience big players like Tabby and Klarna deliver — and your app should too.

Below are key features to add in buy now, pay later apps in the UAE:

Feature	Purpose
Biometric Login	Enables secure and fast login using Face ID or fingerprint.
Real-Time Credit Limits	Displays available spending power instantly based on the user’s profile.
Order Tracking	Let users track their purchases directly within the app.
Payment Reminders	Sends timely push/email notifications before due dates to prevent defaults.
Transaction History	Offers full visibility of past purchases, payments, and due balances.
One-Click Checkout	Simplifies the purchase process with pre-filled payment details.
In-App Chat Support	Provides instant help and improves user satisfaction through live chat.
Clear Installment Schedules	Outlines when and how much the user will pay in a clean format.
Secure Payment Gateway Integration	Ensures safe processing of payments directly in the app.
Dark Mode & Personalization	Offers a modern experience with customizable UI settings.

6. Build Your Secure MVP

It’s time to start building once your research, compliance, and design foundations are done and dusted.

Don’t aim for a fully fledged product initially. Instead, focus on developing a Minimum Viable Product that delivers core functionality and validates your concept. 

Your goal here should be to launch quickly with a lean version of your app, collect feedback, and iterate based on real-world usage.

Startups that scale prematurely (often by skipping MVP validation) fail 70% of the time.

Here, an agile development approach is key to success for Apps like Tabby.

Break down your entire project into manageable sprints, ideally in one- or two-week cycles, and continually test features with early adopters or internal QA teams. 

This way, you can refine the product based on real-time feedback, rather than assumptions. 

Ensure your codebase is modular, scalable, and easy to maintain, so that it’s straightforward to conduct future updates and doesn’t require rebuilding the entire app.

By focusing on a secure, high-quality MVP first, you minimize risks, control development costs, and set the stage for long-term product growth.

7. Test Rigorously 

Before your BNPL app goes live, it’s absolutely essential to put it through comprehensive and rigorous testing. 

You will ensure here that your app, like Tabby, is secure, stable, and scalable. It will be your final safety check before opening your digital doors to the world.

Those who skip or rush this phase can lead to bugs, security vulnerabilities, and a poor user experience, costing in the form of a lack of customer trust and damage to your brand. 

In fact, 53% of users uninstall or stop using an app if it crashes, freezes, or has errors. (Think with Google)

Instead, your goal should be to test like your reputation depends on it, because it does.

Here’s a breakdown of the different types of testing to conduct: 

Testing Type	Purpose
Unit Testing	Tests individual components or functions to make sure they behave as expected.
Integration Testing	Ensures that various modules (such as payment gateways and user accounts) work together seamlessly.
UAT (User Acceptance Testing)	Simulates real-world usage by actual end users to validate usability and functionality.
Performance & Load Testing	Evaluates how the app performs under high traffic and stress (e.g., during sales or payday spikes).
Penetration Testing	Identifies security vulnerabilities by simulating attacks, often conducted by ethical hackers.

8. Launch it in the market

To ensure your app-like tabby gains traction quickly among both end-users and merchants, you should roll it out in the wild with a targeted go-to-market strategy. 

It involves running marketing campaigns that resonate with your audience and highlight your app’s unique value. 

You can start by leveraging popular marketing channels like Instagram, TikTok, and Snapchat to target younger, tech-savvy audiences. 

Collaborate with lifestyle and fintech influencers to build trust and credibility while expanding your reach to relevant communities.

Do implement referral programs that encourage word-of-mouth marketing by rewarding users for inviting friends. 

To further grow user retention, you should provide incentives based on first orders, loyalty points through gamified interactions, and exclusive deals with partnered merchants. 

9. Scale & Optimize

Launching your app like Tabby is not enough; the real success comes after. 

To make the most out of it, shift your focus to growth, performance optimization, and continuous improvement. 

Keep a close eye on your app’s performance to outsmart existing Tabby alternatives. 

It will help you understand what works for you and identify any existing room for improvement. 

You can make data-driven decisions by:

• Customer Acquisition Cost (CAC)
• Average Order Value (AOV)
• Installment Completion Rate
• Default Rate

Experts in mobile app maintenance services utilize AI and machine learning to enhance the credit-scoring engine. 

AI tech analyzes customer behavior, transaction history, and repayment patterns to make accurate credit risk predictions. 

You can predict late payments with 90–95% accuracy, enabling proactive outreach with artificial intelligence.

Last but not least, the timely optimization of buy-now, pay-later apps in the UAE will help you remain sustainable in the long run.

Check This Out: Explore our curated list of 25 apps like Kik that offer secure messaging, unique features, and vibrant communities.

How Much Does It Cost to Build an App Like Tabby?

Over the past few years, buy-now, pay-later apps have revolutionized how people shop and manage their finances in the UAE and beyond. 

They offer flexible, interest-free payment options to open up exciting opportunities for startups, retailers, and fintech entrepreneurs.

So, how much does it cost to build a tabby-like app in the UAE? 

On average, the cost to build an app like Tabby in the UAE typically ranges from AED 180,000 to AED 700,000, depending on the app’s complexity, features, and timeline.

Here’s an overall cost estimate: 

App Complexity	Estimated Cost (AED)	Timeline
Basic MVP	180,000 AED – 280,000 AED	4 – 6 months
Mid-Level App	300,000 AED – 500,000 AED	6 – 8 months
Advanced App	550,000 AED – 700,000+ AED	8 – 10+ months

Note: Ongoing maintenance, cloud hosting, and regular updates incur an additional annual cost of AED 90,000 – 150,000.

How Tabby Makes Money?

You may have seen this “buy now, pay later” option at checkout while shopping online. 

And if you’re in the Middle East, chances are you’ve come across Tabby, one of the most popular in the UAE.

It’s often confusing to understand how these apps, which let you split your payments with zero interest, earn a profit and sustain their business operations. 

Let’s break it down in a way about how Tabby makes money—no finance degree required.

Revenue Stream	Description	Why It Works
Merchant Fees	Tabby charges a commission (usually 4%–8%) on each purchase made via its app.	Merchants are happy to pay since Tabby helps boost sales and conversion rates.
Late Payment Fees	Customers are charged a small fee if they miss a repayment deadline.	Encourages timely payments and offsets the cost of managing delinquencies.
Interchange Fees	Tabby earns small fees from payment networks when users pay with the Tabby Card.	Offers more payment flexibility and adds a steady revenue stream.
Data Insights	Potential revenue from offering analytics or insights to merchants.	Helps partners improve marketing and sales through better customer understanding.

Challenges in Building an App Like Tabby

Creating an app like Tabby involves a fair share of challenges that can’t be overlooked. 

Since you are working on a regulated fintech product for the UAE market, it is non-negotiable to aim for a fast, secure, scalable, and compliant solution that adheres to existing financial laws.

These technical hurdles are significant, but not insurmountable, when you partner with our mobile app development company, which has a deep understanding of the UAE market.

• Securing User Data & Preventing Fraud

In the fintech world, data security can either make or break your success. 

The ‘buy now, pay later’ UAE task without a credit card is very sensitive due to the sensitive nature of the data, including ID, payment details, and history. 

To avoid being targeted by cyber criminals, you need to build your app with top-tier security from the ground up. 

You may also need a stringent fraud detection system to deal with someone trying to game the system with fake identities or merchants abusing the platform. Implementing robust fraud prevention software helps organizations adapt quickly and stay ahead of these evolving threats.

Bonus read: Want a cost estimate for a Botim-like app? Explore our comprehensive guide on development costs for 2025.

• Building Smart Credit Scoring Engine

One of the core functionalities of a pay-later app like Tabby is instant credit decision-making.

But how do you determine someone’s creditworthiness in seconds without relying on lengthy bank checks? That’s where things get tricky. 

You’ll need to either integrate with the Al Etihad Credit Bureau in the UAE or build your own AI-powered risk scoring model. 

Striking the right balance between fast approvals and minimizing default risks will be the toughest part of your project here.

• Integrating with Payment Gateways

Installment apps in the UAE are only useful if they integrate smoothly with the stores where people shop. 

You will need robust APIs or plugins for platforms like Shopify, Magento, and WooCommerce, as well as custom integrations for large retailers. 

Additionally, your app must be compatible with UAE-approved payment gateways, such as Checkout.com, Telr, PayTabs, or Network International. 

• Designing for Multiple User Roles

Unlike traditional consumer apps, apps like Tabby serve multiple user types: customers, merchants, and internal administrators. 

Each group requires a distinct interface, workflow, and feature set.

Balancing all of this within a single app ecosystem is a real challenge that requires thoughtful UX/UI design.

• Supporting Arabic and English Users

Since you’re building for the UAE market, bilingual support is essential—your app should function equally well in both Arabic and English. 

But this goes beyond just translating text. Arabic is a right-to-left language, which requires special attention in layout design, typography, and navigation flow. 

The user experience should feel native and natural in both languages. 

Poor translation or overlooked design details instantly break trust with users, especially in financial apps where clarity is critical.

Also Read: “30 Apps Like TikTok – Top TikTok Alternatives for 2025”

• Building Trust and Brand Credibility

Trust is everything when it comes to the fintech space.

Users are entrusting your app with their financial data and expecting seamless, secure transactions. 

Since buy-now-pay-later apps in the UAE are still relatively new in many markets, including the UAE, building brand credibility can take time and effort. 

Without a strong reputation, it is hard to convince users and merchants to adopt your platform over established players like Tabby.

• Innovating Beyond Basic Features

With so many BNPL providers emerging, simply replicating basic functionalities won’t be enough to stand out. 

To differentiate yourself, consider incorporating value-added features such as personalized payment plans, loyalty rewards, or budgeting tools. 

These enhancements will require additional effort from your end, including customer research and staying informed about trends.

8 Best Tabby Alternatives in the UAE (2025)

Even though Tabby is a recognized name in the buy now pay later services in the UAE, we still have matches for this mighty.

Tabby alternatives, such as Postpay, Tamara, and Cashew, offer similar or may be better support, depending on your specific needs.

Let’s explore each of them and what makes them worth considering.

1. Tamara

Tamara is a Saudi-based platform that has expanded across the Gulf Cooperation Council (GCC), including the United Arab Emirates. 

Being among the best alternatives to Tabby, it offers a smooth experience for users who want to buy now and pay later, without worrying about additional fees.

Features	Best For
Pay in 30 days or over three installments	GCC-focused platform with regional support
No interest or additional charges	Simple and transparent payment system
Available with brands like SHEIN, Namshi, Faces, and more	High approval rate and mobile-friendly UI

Tamara

Price Free

Downloads 1 Million+

Requires Android 5.0, iOS 12.0 or up

Size Approximately 40 MBs

2. Postpay

Postpay is a homegrown buy now, pay later platform designed specifically for UAE consumers. 

It allows you to split your purchases into 3 or 4 interest-free payments at checkout, online, and in-store.

Key Features	Best For
Pay in 3 or 4 installments	Tailored for the UAE market
No interest or hidden fees	Smooth user experience with fast approval
Widely accepted by UAE merchants like Sephora, Sharaf DG, and Level Shoes	Strong network of local and regional brands

Postpay

Price Free

Downloads 50K+

Requires Android 5.0, iOS 12.0 or higher

Size Approximately 30 MB

3. Klarna

Klarna, one of the BNPL alternatives, is making inroads into the UAE through global e-commerce partnerships. 

It’s ideal for users who frequently shop from international brands.

Key Features	Best For
Pay in 30 days or split over 3–36 months	Trusted by global shoppers
World-class app interface and payment tracking	Great for international purchases that ship to the UAE
Supports fashion, electronics, and lifestyle shopping	Built-in budgeting and spending tools

Klarna

Price Free

Downloads 50 million+

Requires Android 7.0, iOS 12.0 or higher

Size Around 104.9 MB

4. Spotii (Powered by Zip)

 

Spotii, now a part of the global BNPL giant Zip, was launched in Dubai and remains a popular choice in the UAE. 

It supports thousands of merchants and promotes financial empowerment through easy payment plans.

Key Features	Best For
Pay over four equal installments	Strong local roots with global support
No interest or hidden charges	Quick signup and approval
Integrated with regional and global brands	Available both online and in physical stores

Spotii

Price Free

Downloads 100K+

Requires Android 5.0, iOS 12.0 or higher

Size Around 25 MB

5. Affirm

Affirm is a US-based installment app growing in popularity among UAE users who shop internationally. 

It offers flexible repayment options and is well-suited for large purchases.

Key Features	Best For
Pay in monthly installments (up to 36 months)	Big-ticket international purchases
Interest rates vary depending on the retailer and user profile	Shoppers seeking longer-term financing options
Transparent pricing with no late fees	Users wanting detailed repayment schedules

Affirm

Price Free

Downloads 10 Million+

Requires Android 7.1, iOS 12.0 or higher

Size Around 59.5 MB

6. Shahry

Shahry is one of the mobile apps with a buy now, pay later model in the UAE, designed for customers without a credit card or formal credit history.

Key Features	Best For
Buy now, pay later with flexible monthly plans	No paperwork or traditional credit check required
Instant digital credit approval	Perfect for younger or underbanked consumers
Focus on mobile phones, electronics, fashion, and essentials	Works well for both online and in-store purchases

Shahry

Price Free

Downloads 500+

Requires Android 5.0, iOS 12.0 or higher

Size Around 20 MB

7. Afterpay

Afterpay is a global BNPL platform that’s gradually gaining traction in the UAE via partnerships with international e-commerce stores.

Features	Best For
Pay in 4 bi-weekly installments	Perfect for international shoppers using global marketplaces
Interest-free payments if paid on time	Trusted and recognized brand in BNPL
Strong buyer protection policies	Integrates seamlessly with popular e-commerce sites

Afterpay

Price Free

Downloads 10 Million+

Requires Android 7.0, iOS 12.0 or higher

Size Around 118.5 MB

8. Cashew

Cashew is among Tabby app competitors based in the UAE, offering one of the most flexible fintech services for local consumers.

Key Features	Best For
Pay over 3 to 12 months	Ideal for high-value purchases
Zero interest (for shorter tenures)	Local customer support
Partnered with leading retailers like Jumbo, Lenskart, and Danube Home	Instant approval process and intuitive mobile app

Cashew

Price Free

Downloads 50K+

Requires Android 5.0, iOS 15.0 or up

Size 57.8 MB

Wrapping Up

Building a best app like Tabby is often tricky as it demands financial partnerships, compliance planning, and a deep understanding of user behavior.

With the right strategy and development partner, you can create a future-ready BNPL app that drives customer loyalty and retail growth.

At Trango Tech, we are proud to serve startups and enterprises with exceptional, scalable fintech apps from the ground up.

We have an unending list of clients that trust us worldwide, including Kia, Sauron, Matchbox, Khaity, Edenred, and Bayer.

Partnering with our experienced fintech development company, Trango Tech, gives you a major head start, from start to finish.

Frequently Asked Questions

How do I create a Tabby account?

Just download the Tabby app, tap “Sign Up,” and enter your phone number. Verify it via SMS, fill in your basic info, and you’re all set! You can also sign up during checkout at any Tabby partner store.

What makes Tabby-like apps successful?

Apps like Tabby succeed because they make shopping easier and more flexible. Users love the ability to buy now and pay later with no interest or hidden fees. The app is simple to use, offers fast approvals, and partners with popular stores people already love. 

How to Build an App Like Tabby?

Creating an app like Tabby requires a combination of strategic planning, the right technology, and a thorough understanding of its functionality. 

Here is a quick process to build an app like Tabby:

1. Research the BNPL market
2. Define core features
3. Pick your tech stack
4. Design a clean UI/UX
5. Develop frontend & backend.
6. Ensure legal compliance
7. Test thoroughly
8. Promote and scale

How does an app like Tabby make money?

Tabby makes money mainly by charging merchants a commission on each sale. It may also earn interest on longer-term plans and late payment fees. 

How long does it take to build a BNPL app like Tabby?

If you’re starting with a basic version, you can expect to launch in approximately 3 to 6 months. A full-featured app with advanced tools, such as AI-based credit scoring, might take closer to 6 to 12 months.

How much does it cost to create an app like Tabby?

The cost to create apps like Tabby ranges from $30,000 to $150,000, depending on the app’s complexity, timelines, and the app development company you partner with.