Postpay Collaborates With Commercial Bank Of Dubai
The Commercial Bank of Dubai (CBD), which is one of the prominent banks in the UAE, approved a debt financing deal with Dubai-based Buy Now, Pay Later (BPNL) provider, Postpay, which is a leading omnichannel. This initial debt financing arrangement is just another example of how FinTech and traditional banks are expanding the financial products offered in the market.
Postpay will benefit from the planned partnership with CBD on multiple fronts, including e-commerce solutions, transaction banking, and debt funding, allowing it to focus on growth and support for its customers and merchant partners. This will also help them proceed with the expansion in the UAE, KSA, and other GCC countries. The financing facility helps Postpay to solidify its place as the region’s leading BNPL firm with the most diverse range of brands. Furthermore, it empowers it to achieve ambitious goals for the future.
The CEO of Commercial Bank of Dubai, Dr. Bernd van Linder, said that the partnership with Postpay is in line with their commitment to back the customers’ ambitions and they believe in supporting the growing FinTech ecosystem in the UAE so as to enhance the overall payments sector with innovative digital solutions like buy now, pay later.
Last year, Postpay closed a $10 million pre-series funding round that was led by Afterpay, Touch Ventures, and others, which accelerated the growth of the company.
The business model that has boomed since the onset of COVID-19 is the buy-now-pay-later business model that allows consumers to make online purchases immediately and spread their payments out in interest-free instalments. This happened because of the shift of consumers from in-person to online shopping.
A report by New York data research consultancy CB Insights said that it is predicted that the industry will grow 10 to 15 times by 2025 worldwide, topping $1 trillion in annual gross merchandise volume by some estimates.
Postpay works with global brands like H & M, Footlocker, and Dermalogica as well as regional names such as Alshaya Group, The Entertainer, and Kcal. It was founded in 2019 in Dubai and offers shoppers the option to pay in three monthly instalments at their partner stores with no interest or fees.