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Flexible Payment Solutions: The Cornerstone of Modern E-commerce Success
Flexible payment solutions have become a cornerstone of modern e-commerce success. In today’s highly competitive market, installment payment options play a crucial role in boosting sales for Saudi online stores by attracting customers and increasing average basket value. With leading services such as Tabby and Tamara, consumer shopping habits have shifted, as more buyers now prefer to split their payments.
Recognizing this need, PolarisMAX supports installment payment gateways for online stores, offering your customers the flexibility they expect while ensuring sustainable growth in sales and profits.
How Do Installment Payments Reduce Cart Abandonment?
Cart abandonment is one of the biggest challenges e-commerce stores face—customers add items to their carts but leave without completing the purchase. Installment payments act as an effective solution by removing the barrier of immediate cost, often the main reason for hesitation, especially with high-priced items.
When customers see the option to spread payments into manageable monthly installments, their hesitation decreases, and they are more likely to finalize the purchase, leading to a noticeable drop in cart abandonment rates.
The Role of “Buy Now, Pay Later” (BNPL) in Enhancing Customer Experience
BNPL services significantly improve the shopping experience by providing immediate financial flexibility. These services allow customers to get what they want right away while spreading the cost over a set period, often without interest.
This not only reduces the financial burden but also simplifies the payment process, making it faster and smoother. Customers feel more comfortable and confident with stores offering convenient payment options tailored to their financial capabilities—boosting satisfaction and brand loyalty.
PolarisMAX Solutions for Seamless Multi-Payment Integration
PolarisMAX provides a comprehensive technical solution that eliminates the complexity of managing multiple payment integrations. Instead of building separate integrations for each gateway, the platform offers a unified interface that easily connects your store with leading payment and installment providers like Tabby, Tamara, and others.
This ensures customers enjoy a fast and secure payment experience, while merchants manage all payment options from one central dashboard—saving time and minimizing technical errors.
Tabby or Tamara: Which Is Better for Your Saudi Store?
Choosing between Tabby and Tamara depends on your store type and customer needs. Both are BNPL leaders in Saudi Arabia, but each offers unique advantages:
| Feature | Tabby | Tamara |
|---|---|---|
| Installment Options | Usually split into 4 monthly payments. | More flexible: 3 or up to 6 installments in some stores. |
| Deferred Payment | Pay in full after 14 days. | Pay in full after 30 days. |
| Late Fees | SAR 15 after 14 days. | Recently announced removal of late fees. |
| Market Reach | Broad partnerships with many local and online stores. | Strong partnerships with major well-known brands in KSA. |
Conclusion:
If your audience prefers longer repayment periods and more flexible installment options, Tamara may be the better fit. But if you want broader coverage and faster deferred payment, Tabby could be the right choice.
5 Reasons Why Installment Payments Are a Must-Have for Your Online Store
Offering installment payment options is no longer a luxury but a strategic necessity for e-commerce growth. By enabling customers to “buy now and pay later,” you unlock major benefits:
Higher Average Order Value – Customers are more likely to purchase higher-value products when payments are split.
Better Conversion Rates – Reduces financial hesitation, leading to more completed purchases and fewer abandoned carts.
Reach New Customer Segments – Attracts buyers who prefer budget management via scheduled payments.
Customer Loyalty – Flexible and comfortable payment options encourage repeat purchases.
Increased Overall Sales – All these factors combined directly drive revenue and profit growth.
How to Choose the Best Installment Payment Gateway for Your Business
When selecting the right BNPL gateway, consider:
Fees & Costs: Compare transaction fees across providers.
Integration Ease: Choose gateways with simple, smooth integration to avoid technical complications.
Customer Experience: Ensure the checkout is user-friendly and fast.
Market Reach: Opt for well-known providers like Tabby and Tamara, trusted by Saudi shoppers.
Technical Support: Reliable, responsive support for merchants is essential.
Success Stories: Saudi Stores After Activating Installments
Many Saudi stores have seen a significant boost in average basket value and overall sales after enabling installment payments. These services also attract new customers seeking financial flexibility, reducing cart abandonment and strengthening loyalty.
Examples of Stores Offering BNPL in Saudi Arabia:
Electronics & Appliances: Jarir, Extra, Al Shita Wal Saif
Retail & Hypermarkets: Noon, Amazon KSA
Fashion & Beauty: Shein, Sivvi, Namshi, Paris Gallery
Furniture & Home Goods: Nice, Home Box
Others: Centrepoint, specialty retailers
FAQs
1. Does BNPL affect a customer’s credit score?
Yes. Late payments can negatively impact credit scores, as BNPL companies are linked to the Saudi Credit Bureau (SIMAH). Timely payments help maintain a healthy credit record.
2. What’s the maximum BNPL purchase limit with Tabby and Tamara?
Limits vary per customer, based on payment history and repayment reliability. The Saudi Central Bank has also set maximum financing caps per customer.
3. How are returns handled for installment purchases?
Returns follow the store’s return policy. Once the store approves the return, Tabby or Tamara cancels pending installments and refunds any paid amount.
4. Can I use Mada cards with Tabby and Tamara?
Yes. Both support Mada, Visa, MasterCard, and Apple Pay.
5. Are there hidden fees or interest charges?
No. BNPL services split the purchase without interest. Providers earn through merchant commissions. Only late fees may apply if payments are missed.
Summary
✅ BNPL can boost conversion rates by 20%–30%.
✅ Tabby merchants report a 33%+ increase in average basket value.
✅ Saudi Arabia’s BNPL market hit SAR 26.6 billion in annual transaction value, with 206% growth.
✅ There are now 13.2 million BNPL users in Saudi Arabia, 37% aged 20–30—a huge consumer base.
✅ BNPL encourages repeat purchases, with frequency rising up to 40%
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