Popular buy now and pay later services in the UAE
With the surge in e-commerce shopping platforms in the Middle East, buy now, pay later (BNPL) services are picking up pace in the UAE. Offering flexible instalment plans and lower interest rates, these platforms make shopping more convenient and affordable for consumers. Here is a list of platforms that let you buy now, pay later in the UAE.
WHAT ARE BUY NOW, PAY LATER (BNPL) SERVICES?
Buy now, pay later (BNPL) service is an instalment loan that allows you to split your purchase into several ‘smaller’ payments. Sometimes, you must pay a certain amount upfront, whereas other services enable you to check out and pay later.
MOST POPULAR SERVICES TO BUY NOW, PAY LATER IN THE UAE
POSTPAY
Founded by Tariq Sheikh and Dani Molina, Postpay is a premier buy now, pay later avenue in the UAE.
HOW DOES IT WORK?
If you are a PostPay user:
- Shop online at any listed store
- Select ”Postpay” at checkout
- Enter your details, and off you go!
PAYMENT MODULE
Postpay allows you to pay in three equal instalments. The first instalment (33%) must be paid immediately. However, the remaining two payments will be paid every month after that.
Postpay allows you to use their BNPL solution to buy electronics, beauty, fashion, sports and fitness, home and furniture, kids and entertainment brands, such as West Elm, Marina Home, Pottery Barn, NutriSmart, Bath and Body Works, Ounass and Footlocker.
Please note:
- The expenditure limit at PostPay is subject to the nature of the items and your payment history. Remember, the better your payment history, the higher your limit. However, there’s a restricted limit for first-time users.
- Postpay also has an app that can be downloaded from Google Play or App Store.
- Postpay accepts standard modes of payment such as Mastercard and Visa debit/credit cards. They don’t accept prepaid cards.
- Next day late fee: AED 25
- 10-day late fee: AED 30
- Interest: No
RISE
Next on our list is Rise. Established in 2016, Rise collaborates with global partners to offer credit, insurance and savings solutions for low-income migrants. You can get their buy now, pay later service in the UAE, allowing you to pay in easy instalments.
HOW DOES IT WORK?
Rise users can:
- Shop for electronics and home appliances from any Carrefour outlet in the UAE
- Select Rise at the checkout
- Pay in instalments
PAYMENT MODULE
Rise has a different time frame for different payment types. For further information, call +971-4-513-5021.
- Average late fees: AED 20
- Interest: Yes with “Buy with rise”
ARAMEX SMART
One of the most popular courier services from Dubai, Aramex, has released a new smart service to enhance its customers’ online shopping experience. This service is known as Aramex Smart.
HOW DOES IT WORK?
Registered Aramex Smart users can:
- Shop at a respective store
- Select Aramex Smart at the checkout
- Clear the payments within two weeks
PAYMENT MODULE
- Aramex Smart allows consumers to settle the pending amount within 14 days after the delivery of the shipment.
- You can pay later using any mode of payment.
Please note:
- The system supports bank transfers, PayPal, debit cards and credit cards. Users can also pay in cash at any of their select Aramex stores.
- In case of missing a payment, customers will be subject to a fine of 10 Saudi riyals (AED 10). After eight weeks of non-payment, the service will be put on hold for the respective user.
- Average late fees: AED 10
- Interest: No
SPOTII
A slang for ”lend me”, the name ”Spotii” itself gives away the purpose of the platform, i.e., lending cash. Co-founded by two siblings, Ziyaad Ahmed and Anuscha Iqbal, Spotii is a BNPL financing avenue.
HOW DOES IT WORK?
ONLINE
- Select Spotii at checkout
- Sign up/sign in to Spotii using a valid email, mobile number and credit/debit card
- Complete your purchase
IN-STORE
- Sign in/Sign up in the Spotii app
- Select in-store tab
- Enter the amount of the order and check your payment schedule
- Pay in instalments
PAYMENT MODULE
Spotii allows customers to pay 25% of the total cost upfront and divide the remaining amount into four instalments.
You can use Spotii’s buy now, pay later service across multiple beauty, fashion and lifestyle outlets in the UAE, such as Khaadi, Riot and The People of Sand, to name a few.
- Average late fees: 25% or AED 50 (whichever is lower)
- Interest: No
TABBY
tabby (also written as Tabby) is another platform that offers BNPL financing solutions in the UAE. This enables customers to buy products online using only their email address and mobile number.
HOW DOES IT WORK?
ONLINE
- Sign in/Sign up in the tabby app
- Select your favourite brand
- Choose tabby at checkout
IN-STORE
- Scan the tabby QR code at the store
- Create an account and enter your credit/debit card details
- Pay only 25% upfront and check out
PAYMENT MODULE
tabby allows customers to pay 25% charges upfront, followed by payment in four interest-free instalments within 14 days. You must send the first payment after the shipment of your order, whereas the remaining three payments are collected monthly.
Please note:
- tabby doesn’t limit its users from making purchases. You can make as many purchases as you want. However, order approval is subject to your good payment history.
- tabby accepts payments through tabby card and cashback.
- In case of non-payment, you will not be allowed to make purchases with tabby.
- One week late fees: AED 15 (Maximum AED 45 for three weeks or more)
- Interest: No
CASHEW
cashew is a buy now, pay later platform that challenges the existing credit ecosystem with simple, transparent and flexible financing solutions.
HOW DOES IT WORK?
Registered cashew app users must:
- Select cashew at the checkout
- Select a payment schedule
- Get reminders from cashew when your payments are due
PAYMENT MODULE
The payment module for cashew is quite flexible. You can make the full payment or divide the cost into three, six or 12 instalments.
ELIGIBILITY CRITERIA
To use cashew, you must be 21, have a valid email address, Emirates ID, UAE-issued debit card/credit card with at least six months validity and a phone number.
cashew has an impressive list of participating outlets, including Namshi, Crate and Barrel and THAT Concept Store, where you can shop online without paying at the checkout.
- Average late fees: AED 20
- Interest: No
TAMARA
A Saudi Fintech startup, Tamara supports people with inclusive and transparent payment solutions in the UAE.
HOW DOES IT WORK?
Registered Tamara users can pay in-store or online, following the procedure below.
IN-STORE
- Select Tamara at the checkout
- Share your cell number with the store staff
- Wait for an SMS with a payment link
- Click on the link and make the first payment
- Track your payment via the app
ONLINE
- Login to Tamara app/sign up with your cell number
- Verify your ID (first-timers)
- Make the payment
PAYMENT MODULE
You can pay in three instalments over 60 days.
ELIGIBILITY CRITERIA
UAE citizens or residents aged 18+ are eligible to make payments with Tamara.
Customers can shop at any of its participating outlets, including Pottery Barn, Boksha and Miracle Design, without paying immediately.
- Average late fees: AED 20
- Interest: No
FAQS ABOUT BUY NOW, PAY LATER IN THE UAE
IS AFTERPAY AVAILABLE IN THE UAE?
Unfortunately, Afterpay is only available to those with a valid USA billing address.
HOW DO THESE SHOP NOW, PAY LATER SERVICES MAKE MONEY?
These services collect fees from their participating stores. They get a certain percentage of customer purchases.
That wraps up our list of ways to buy now and pay later in the UAE. I think you’ll agree with us when we say that the influx of these services has benefited consumers throughout the country.
You can use these services at several online shopping sites in the UAE, including Namshi and Sharaf DG.
For more information and updates about digital wallets in the UAE, stay tuned to MyBayut.
