How is Wafeq's accounting software changing the game for BNPL in MENA with Tabby?



In this article, we would like to introduce Tabby, one of our cherished partners, and their testimonial about our cooperation. Tabby aims to redefine the way we think about online purchases with their buy now, pay later solution, and we are thrilled that they entrust Wafeq with their accounting—read on to see how our partnership works.

About Tabby And Their Services

Tabby empowers millions across the Middle East by enabling them to divide online payments for a seamless shopping experience. With Tabby, you can enjoy shopping now and paying later in four equal installments, free from hidden charges and interest.

With over 3 million active users and +10,500 merchants across the Middle East, Tabby is prominent in the region's fintech landscape. And they rely on Wafeq's software and services for their accounting needs.

Tabby’s Partnership With Wafeq

With that in mind, let’s see what Tabby had to say about Wafeq, we interviewed Abdulaziz Saja, KSA General Manager at Tabby.

After his MBA at Chicago Booth School in the US, Abdulaziz spent a couple of years in the consulting space at McKinsey & Company, establishing the foundations of his knowledge in business. Abdulaziz joined Tabby in 2019 as one of the earliest members of the founding team and has helped the company ever since.

Tabby initially approached Wafeq looking for a reliable accounting and bookkeeping solution that ticks all the boxes and has the ability to adapt, evolve, and scale as demand grows, Abdulaziz explained.

We approached Wafeq needing essential accounting and bookkeeping; however, our relationship expanded way beyond that ever since”— Abdulaziz Saja, KSA General Manager at Tabby

How Wafeq Helps Achieve Tabby’s Vision

Tabby aims to introduce its buy now, pay later (BNPL) model for millions. With tens of thousands of daily transactions, they require a robust accounting solution to handle the high volume of transactions that Tabby deals with, and This is where Wafeq and its advanced software with accounting automation come into play, as well as more features, including:

• Scalability, reliability, and customization
• Automated settlements for merchants
• Customized automated invoicing
• Integration and Compliance

Scalability, Reliability, And Customization

Abdulaziz emphasized the importance of Wafeq's software in providing scalability, reliability, and customization for Tabby.

The reason why we chose Wafeq, and why we are still working together, is because it was able to grow together with Tabby’s scale

Wafeq was able to grow together with Tabby while keeping its essential services reliable. Also, Wafeq was constantly adapting and rolling out new custom features as Tabby needed more and more tailored solutions, Abdulaziz continued.

This adaptability has ensured that Tabby's accounting requirements are consistently met as their operations expand.

Automated Settlements For Merchants

With a network of over 10,500 merchants across the Middle East, Tabby relies on Wafeq's software to streamline settlements and reconciliations for its partner merchants.

Abdulaziz highlighted the efficiency Wafeq provides, stating, "I remember quite well how Wafeq's CEO and Founder Nadim and his team helped Tabby from day one with automated settlements and reconciliations for merchants."

Another aspect he highlighted was how Wafeq managed to automate thousands of daily transfers with Tabby’s partner banks, helping the organization’s infrastructure greatly.



Tabby's Payment and Invoicing Process (Example)

1. A shopper buys from a Merchant for 1000 SAR, using Tabby checkout.
2. Tabby uses Wafeq to create ZATCA-compliant invoices for all monthly settlements we do for the merchants automatically
3. Wafeq helps Tabby with each merchant settlement for easy end-of-period bookkeeping/accounting.
4. Tabby aggregates accounting events with Wafeq’s help and issues a summary invoice to Merchant for all orders during the period.
5. Tabby uses Wafeq to automatically pay out the payable to Merchant through bank integration and reconciles the payment with the payable in the ledger. - To note, Wafeq API is used by Tabby to issue invoices for late payment fees from shoppers.

Customized Automated Invoicing

Wafeq's software also offers customized automated invoicing, a feature Abdulaziz spoke highly of.

"The focus on the core product combined with continuous innovation and custom, enterprise-led solutions are among the top qualities that make Wafeq an impressive partner," he said.

This customization has been instrumental in ensuring that Tabby's financial documents flow seamlessly at all times.

Read more about Wafeq partnership with Lean Technologies.

Integration and Compliance

Wafeq's software is designed to integrate smoothly with existing systems, as demonstrated by its seamless collaboration with Tabby's processes.

Additionally, Wafeq ensures that all invoices are compliant with relevant regulations, such as ZATCA compliance for Tabby's monthly settlements.

The Future Of Fintech In The Middle East

The future of fintech in the Middle East looks bright. With the open banking revolution on the corner, it is more important than ever to implement the right technology when it comes to startups' finances as soon as possible.

Automation has already started to take over and will continue to dominate the field in the upcoming years; from invoicing to settlements and payments, automation should be the number one aspect to look for in financial products for fintech businesses.

We at Wafeq recognized this trend and built our solutions accordingly, creating a product that not only excels in the present but will remain competitive.

The Future Of Venture Capital (VC) Funding

In his answer about Venture capital, Abdulaziz said:

The VC scene for startups in the Middle East has evolved in recent years. The healthy ecosystem contains several competent venture capital funds for pre-seed, seed, or Series A funding.

It’s important to highlight that not all VCs are the same, as there are private family-backed, government-funded, new, and more well-established ones out there, resulting in a diverse and well-rounded space.

There are still funding gaps when it comes to Series B and above funding.

Nonetheless, top entrepreneurs and great businesses will be able to secure the appropriate investments for their firms.

Startups’ Situation And Prospects in KSA

Startups in Saudi Arabia have better conditions now, with easier licensing and operations. The ecosystem has improved in the last 3 to 4 years due to the aggressive push from stakeholders, including government-backed venture capital funds like Jada. Stakeholders like The Central Bank, Saudi Fintech CMA Capital Market Authority and the Ministry of Information & Telecommunication have collaborated to create solutions for local and foreign startups.

The regulators have opened doors for entrepreneurs with clear business plans, a healthy ecosystem, and more startups and fresh graduates interested in entrepreneurship. These companies hope to provide and enrich the market with a promising generation of technology companies in the Kingdom.

The Conclusion

Wafeq is here to make accounting easier and more efficient for businesses of all sorts and sizes. Tabby is one of the great businesses that chose Wafeq as their accounting solution, and we are both thrilled and humbled to help them achieve their vision.

Our goal is to help every business in the Middle East easily master accounting, and we want yours to be our next partner—reach out now, and let’s get started today.