In a strategic move bringing together two influential players in the financial technology sector, Paymob, a leading company empowering financial services in the Middle East, North Africa, and Pakistan (MENA-P), announced its partnership with Tamara, the leading shopping and payments platform in Saudi Arabia and the Gulf Cooperation Council (GCC) countries.
This strategic alliance offers customers the opportunity to benefit from Tamara’s “Buy Now, Pay Later” service through Paymob’s secure and reliable gateway, facilitating payment processes and enabling customers to split their payments into four installments without any hidden fees or interest.
Paymob’s multi-channel payment infrastructure serves 250,000 merchants in the region, while Tamara boasts a user base exceeding 9 million registered users and 30,000 partner merchants. This agreement between two of the fastest-growing fintech companies results in a payment system that empowers merchants to provide more comprehensive solutions and smoother customer experiences.
Both companies collaborate with some of the biggest brands in the region. However, the primary goal of this partnership is to promote the growth of small and medium-sized enterprises (SMEs), which are major contributors to the gross domestic product (GDP) in the Middle East and North Africa.
Comprehensive payment solutions mean one thing for any company, regardless of size – increased sales and conversion rates. With Tamara’s “Buy Now, Pay Later” service, merchants achieve a 40% increase in average order value, a 15% increase in online conversion rates, and a 50% increase in repeat purchases.
The addition of Tamara’s “Buy Now, Pay Later” service through Paymob’s gateway involves a simple and seamless integration that reduces entry barriers for merchants and ensures the smooth and secure execution of transactions.
In the initial stage, the service will be introduced to merchants in Saudi Arabia and the United Arab Emirates, with plans to expand its coverage to other countries in the future.
Islam Shawky, one of the founders and CEO of Paymob, stated, “Our partnership with Tamara is part of Paymob’s mission to promote the growth of small and medium-sized businesses in the digital economy. We see a tremendous opportunity to empower merchants in the Gulf Cooperation Council region to benefit from the power of alternative payment methods, and we are excited to enhance this growth in the Middle East and North Africa through our partnership with Tamara.”
Turki Bin Zarah, one of the founders and CEO of Business at Tamara, emphasized the significance of the company, saying, “Our partnership with Paymob opens the door wide for thousands of small and medium-sized enterprises to achieve growth in the region.
As the leading platform empowering commerce in the region, we are reshaping the concepts of shopping, payment, and banking services, and we are confident that this alliance with Paymob will have a significant impact on achieving this goal.”
Both Tamara and Paymob are currently experiencing accelerated growth driven by recent funding. Tamara, headquartered in Riyadh, secured $150 million in debt financing from Goldman Sachs earlier this year, marking a groundbreaking deal in the region.
The company is actively diversifying its product lines and strategically expanding into various sectors.
On the other hand, Paymob’s growth in the region is fueled by the funding it received in its Series B investment round in 2022, led by PayPal Ventures.
This resulted in the company’s expansion in the United Arab Emirates during the same year and obtaining a Payment Technology Service Provider (PTSP) license from Saudi Payments in the second quarter of 2023, allowing it to operate fully within the Saudi market.