Building SMEs: Paymob and Tamara Redefine Payments in the GCC
The rapidly evolving fintech landscape of the Middle East, North Africa, and Pakistan, Paymob, the financial services enabler, has officially announced a partnership with Tamara, the shopping and payments platform in the Gulf Cooperation Council region.
The collaboration aims to seamlessly integrate Tamara's Buy Now Pay Later service into Paymob's secure gateway, offering customers the flexibility to split payments into four instalments without incurring any hidden fees or interest. Paymob's omnichannel payments infrastructure, currently servicing 250,000 merchants across the region, will be further fortified by the addition of Tamara's BNPL solution. Tamara boasts over nine million registered users and collaborates with more than 30,000 partner merchants.
The partnership is designed to foster the growth of SMEs, recognised as significant contributors to the region's GDP. Both Paymob and Tamara, having already established partnerships with some of the region's major brands, now aim to empower SMEs by providing them with comprehensive payment solutions and enhancing overall customer experiences.
Merchants adopting Tamara's BNPL solution can expect substantial benefits, including a 40 percent increase in average order value, a 15 percent rise in online conversion rates, and a notable 50 percent increase in repeat purchases.
The integration of Tamara's BNPL solution into Paymob's gateway is a straightforward process, reducing barriers for merchants and ensuring seamless and secure transaction processing. The initial phase of the partnership will focus on serving merchants in KSA and the UAE, with plans for expansion into additional countries in subsequent stages.
Islam Shawky, Co-founder and CEO of Paymob, expressed excitement about the collaboration, stating, "Our partnership with Tamara delivers on Paymob’s mission to fuel SME growth in the digital economy. There is a massive opportunity to enable merchants in the GCC to capitalise on the power of alternative payment methods, and we are thrilled to partner with Tamara to fuel this growth in MENA.”
Turki Bin Zarah, Co-founder and CCO of Tamara, highlighted the significance of the partnership for SMEs, stating, “This partnership with Paymob provides seamless access to Tamara’s services to thousands of SMEs to enable their growth across the region. As a leading commerce enabler, we are revolutionising how people shop, pay, and bank and are thrilled to partner with Paymob as we deliver on this goal.”
Both Paymob and Tamara are currently experiencing rapid growth, by recent funding rounds. Tamara, headquartered in Riyadh, secured a US$150 million debt facility earlier in the year from Goldman Sachs, marking the first deal of its kind in the region. Paymob's growth, propelled by a Series B funding round led by PayPal Ventures in 2022, facilitated its expansion into the UAE and achieved PTSP certification from Saudi Payments in Q2 2023, making it fully operational in KSA.
