Saudi Arabia is a young market where the majority of the population is under 30, and buy-now-pay-later (BNPL) installment payments have rapidly become a major online payment method over the past few years. As SAMA has put a formal licensing framework in place for BNPL, the market is expanding within a regulated structure, and Tabby is a leading provider offering typically four interest-free installments across major Gulf markets including Saudi Arabia and the UAE. Installment options are used as a tool to lower cart abandonment rates and raise average order value.

For Korean merchants selling consumer goods with a price point of several hundred riyals or more — fashion, beauty, home appliances — to younger Saudi consumers, Tabby's ability to split up a lump payment can directly contribute to improving conversion rates. For lower-priced or subscription-type products, wallet-based methods and Mada may take priority, so decide based on your product mix.

When a consumer selects Tabby at checkout, an instant credit assessment is carried out via the Tabby app or mobile verification, and once approved, the order is completed with only the first installment charged. The consumer then pays the remaining installments over time, but Hecto Financial receives the transaction amount in SAR, converts it, and settles the Korean merchant in the contracted currency — USD, KRW, or JPY. Managing installment repayments and collecting on missed payments is generally handled by the BNPL provider, so merchants typically don't need to wait for each installment to be paid, though the exact terms are fixed in the contract.

When integrating through Hecto Financial, Korean corporations can consider launching BNPL for the Saudi market without signing a direct merchant contract with Tabby. Since BNPL fees and approval policies can vary by product category and price point, please confirm the specific terms with the Hecto Financial sales team before signing a contract.

• Business registration country

  Confirm eligibility for a contract as a Korea-based merchant

• Sales channel

  The integration method differs depending on whether you are online-only or also operate offline stores in Saudi Arabia

• Product categories

  Advance confirmation is needed on whether your categories fall under merchant policy restrictions from the Tabby operator

• Local regulatory compliance

  Confirmation is needed on compliance with Saudi Arabia's payment and foreign exchange regulations (see official sources below)

Settlement starts in SAR. Even though the consumer pays in installments, Hecto Financial receives that transaction's proceeds in Saudi riyal, which are then converted and paid out to the Korean merchant in whichever of USD, KRW, or JPY was selected in the contract. The settlement cycle and fees depend on the contract terms, and because of the nature of BNPL, the fee structure can differ from card payments. When a refund occurs, the consumer's remaining installment schedule is adjusted according to Tabby's policy, so please confirm the handling of partial refunds before signing a contract.

• Saudi Central Bank (SAMA)Official information on Saudi Arabia's payment systems and related regulations. If this page's content differs from the actual regulations, the official source takes precedence.