Tabby tests business account for SMEs after 1 million sign-ups
Emirates ID is the only document needed, Tabby says, as a business account enters testing
Dubai: More than 1 million UAE residents have opened a Tabby Cash account since the product was launched to all residents on September 1. The fintech platform announced that it achieved this milestone in just 2 months.
Hosam Arab, Chief Executive and Co-Founder, called it “the fastest growing product we’ve launched.”
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How does Tabby cash work?
Tabby Cash is a fee-free alternative to a debit account. It runs under Tabby’s Stored Value Facilities licence from the Central Bank of the UAE. Customers don't have to pay any setup fee for the account or card fees, and can earn up to 3 per cent cashback on chosen categories and all international spend.
Local transfers are free and unlimited. Global transfers to bank accounts in more than 50 countries carry no transfer fees, and digital wallets such as GCash, JazzCash and Vodafone Cash are supported. Users can split telecom, utility and transport bills into up to 12 monthly payments, and pay Zakat or donate to Dubai charities from their balance.
It can also be used for refunds on Tabby Pay Later purchases as a card refund typically takes 3 to 10 working days.
Who is eligible?
The account is open to UAE residents aged 18 and over. Zarik Nabi, Chief Commercial Officer at Tabby, says an Emirates ID is the only document required. “There’s no salary certificate and no credit check, because Tabby Cash isn’t credit: it’s your own money,” he says. Customers can open an account in the app in a few minutes.
Existing Tabby Pay Later users go through the same process. Nabi notes that the company may offer higher limits as it learns more about a customer’s spending habits.
What does it cost to move money?
Global transfers carry a currency conversion margin, Nabi confirms, but he adds that there aren't any fees on top of that. He says the all-digital model and large customer base keep the margin low. Customers should check and compare before hand to see how much their family will receive before they send.
The account makes money mostly from card spending. Merchants pay a small interchange fee on each transaction, and part of it goes to Tabby. The customer pays nothing. Tabby also earns the exchange margin on transfers abroad, and Nabi says the account draws people closer to the rest of Tabby’s products.
Nabi says customer money is held apart from Tabby’s own funds, in dedicated accounts with UAE banks. It can only be used for customers’ own payments and transfers.
Banks, wallets and fintech's all compete for where people spend and keep their money, Nabi says people switch when they get everything in one place, which is their advantage. He says the benefits of getting a cashback card, bill payments and transfers across town or across the world in one card, with no account or card fees and no minimum balance is what has made the product a success.
Business accounts soon?
Tabby is also looking at small businesses. “We’re testing a business account with a small group of the businesses that already sell with Tabby,” Nabi says. “Expect to hear more from us soon.”
