Postpay offers several options depending on the retailer, including splitting payments in two – half today and half next month – or in four instalments, either every two weeks or on a monthly basis, with no interest. “The inspiration for postpay was being fed up with the financial institutions charging fees and interest on the fees,” says Mr Sheikh, an entrepreneur and former management consultant, who cofounded the company in July 2019 with chief technology officer Dani Molina. Tariq Sheikh started postpay a year ago after 'being fed up with the financial institutions charging fees and interest on the fees'. Here we outline six new buy-now-pay-later offerings in the UAE: "Such problems can easily tip you into a debt spiral, especially if you are already making credit card payments," Mr Cronin adds. Customers should also be confident they can make payments in the event of job loss or a pay cut. "It's very important to make sure that you will be able to pay the instalments in full and on time, otherwise you will incur fees." He recommends only buying something if you have at least 50-75 per cent of the purchase price readily available in cash or other assets. "The danger is that you weaken the mental link between purchasing and paying, so you could go on a big spending spree, buy things you don't really need or can't afford, and then regret it later," Mr Cronin says. However, consumers should be mindful that "there is no such thing as a free lunch", says Steve Cronin, founder of. International players in the buy-now-pay-later space include Australia's Afterpay, which also operates in the US, UK and New Zealand San Francisco-based Affirm, started by PayPal co-founder Max Levchin and Swedish payments tech unicorn Klarna, which has 7.85 million customers in the US. The concept is gaining in popularity in the UAE, especially in the Covid-19 era, when personal finances are fragile due to the global economic recession and merchants are looking to capitalise on the surge in online shopping as people avoid going out to prevent the spread of the virus. Spotii went live in April, has 11 retailers on its site and will be announcing a funding round in the coming weeks.Ĭash-strapped millennials now use instalment plans to pay for clothes Postpay, which raised $500,000 (Dh1.8 million) in seed funding, is in the midst of a new funding round, while Tabby just raised $7m in funding, bringing the total to $9m, to fuel growth and expand to Saudi Arabia. "And on the other side you have retailers who are battling to drive conversion, average order values, and reduce return rates as well." Both postpay and Tabby unveiled their services earlier this year and have each partnered with around 20 retailers so far. "Our ethos is to solve an existing problem in the market, because on the one hand you have customers who are … screaming for some sort of alleviation of costs and they want instalments without APRs and without all the hidden fees," says Tariq Sheikh, founder and chief executive of postpay. Recent FinTech start-ups in the Emirates offering monthly instalment plans or delayed payments for purchases as small as a new pair of shoes – include postpay, Tabby and Spotii. ![]() The inspiration for postpay was being fed up with the financial institutions charging fees and interest on the fees.
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