Publications
Publications
- April 2025
- HBS Case Collection
Tabby: Winning Customers' Digital Wallets
By: Eva Ascarza
Abstract
Teaching Note for HBS Case No. 524-056. Tabby, a Saudi-based fintech founded in 2019, rapidly became one of the MENA region’s first unicorns by offering buy-now-pay-later (BNPL) services with a unique twist: instead of charging end consumers, it partnered with merchants who funded the installment-based transactions. This indirect, merchant-driven customer acquisition model helped Tabby scale efficiently and remain profitable in a low-margin business. As the company reached over 5 million users, it also began expanding its product portfolio to include a marketplace, retail advertising, and a physical card offering. The case culminates in a strategic dilemma: should Tabby maintain its consumer-friendly, merchant-funded BNPL approach or adjust to growing market pressure from a major competitor, IncogKSA, whose model charges consumers directly? Students explore how Tabby can navigate growth, competition, and commoditization in a maturing fintech space while staying true to its core value proposition.
Keywords
Business Startups; Marketing; Entrepreneurship; Growth and Development Strategy; Business Strategy; Business Model; Competitive Strategy; Financial Services Industry; Middle East; Saudi Arabia; United Arab Emirates
Citation
Ascarza, Eva. "Tabby: Winning Customers' Digital Wallets." Harvard Business School Teaching Note 525-057, April 2025.