Interest-free payment will be rolled out in January 2024
Here’s good news to start the New Year for taxi riders in Dubai – they can split the fare into four interest-free instalments, stretching their budget and making it easier on the pocket.
This flexible payment solution is being made possible by the collaboration between Dubai Taxi Company (DTC) and financial services app, Tabby.
Another good news is that this interest-free payment plan will be rolled out in January 2024, a Tabby spokesperson confirmed on Saturday.
Here’s a breakdown of how it will be benefit the public.
How does it work?
Tabby is popular among shoppers. The same concept of BNPL (buy now, pay later) services and benefits will also be applied when they pay for taxi fare.
Customers must download the app to enjoy the ‘split-in-4-monthly payment’ scheme. Only the first payment – 25 per cent or 1/4 – will have to be paid upfront and the rest will be charged in the next three months.
Tabby will let you pay in four instalments without any interest or fees.
Which Dubai taxi company accepts Tabby?
For now, the agreement – a first in the UAE's transport sector for postpaid services – is only between DTC and Tabby.
This means, only taxis under DTC will accept staggered payment. However, DTC founded in 1995, is the biggest taxi operator in Dubai and it currently holds about 44 per cent market share. It has a fleet of about 7,000 taxis.
How does the split in four work?
As mentioned, only the first payment will be collected – this is the same scheme when shoppers buy or collect other goods. The remaining three payments will then be collected every month.
Will passengers pay interest?
No. Tabby said there are no interest or extra charges.
“(The payment scheme) is built on trust. Not interest. You’ll never pay extra when you pay on time. No interest. No fees. No catch,”
the company underlined.
What happens if I miss a payment?
Customers will receive regular reminders before any due payments to avoid missing them. Tabby said they are “committed to responsible spending”, meaning every transaction is carefully considered before they are approved.
The company said if they are unable to collect payment on the scheduled day, the customer will no longer be able to use Tabby until the dues are paid. This also ensures that arrears will not pile up.
Where else can Tabby be used?
DTC is not only known for regular taxis services. It has other mobility solutions, including VIP limousine services, bus services, and last-mile delivery services.
Mansoor Rahma Al Falasi, CEO of DTC, earlier said the collaboration with Tabby
“is expected to bring about a significant shift in the way customers pay for transport services, especially for services like multi-day limousine bookings.”
Hosam Arab, CEO and co-founder of Tabby, for his part, added:
“Our partnership allows us to extend flexible payment options to a broader customer base through the smart services available on the Tabby app. This initiative will enable customers to optimise their financial resources while enjoying the transport services provided by Dubai Taxi."
News Source: Khaleej Times
