Spotii, available in Saudi, UAE, Bahrain and Oman, has 650 merchants on its platform and has seen transaction volume rise at an average of 90% month-on-month since it launched last year, according to Zip. Tamara, which is in Saudi and the UAE, says it has signed up over 1,000 merchants and that transaction volume has been increasing 170% month-on-month. "This is credit and if credit is mismanaged, either by the lender or borrower, bad things happen," Citi Global Head of Banking Research Ronit Ghose told Reuters. The financial authorities in Saudi Arabia and the UAE did not respond to Reuters requests for comment.
It's not clear how Middle East regulators plan to react. They also say they help merchants increase sales as shoppers are able to spread out payments over an extended period and allow shoppers to buy products they need.Īs BNPL firms generally make money off merchant commissions and late fees, not interest payments, they sidestep the legal definition of credit - and credit laws.īut the sector has come under scrutiny with authorities in Britain and elsewhere reviewing or tightening rules around the industry, with some regulators saying that technology companies offering BNPL should be regulated like ordinary lenders.
Users can be suspended if they miss a payment. While shoppers can be charged hefty fees if they miss a payment, providers say they cause less financial burden than credit cards. Gulf providers do not charge interest and instead earn most revenue by charging merchants fees. The model varies but BNPL companies typically allow shoppers to pay for purchases in instalments over several weeks or months. "They would like to see other people talk about it first and maybe explain to them how easy it is." Half of all purchases are paid with card, while cash on delivery accounts for 40% of all online transactions with BNPL making up 10%, Chief Executive Rayan Fadul told Reuters.īNPL is still new to the region's consumers who are wary of using a product they don't yet fully understand, he believes. Saudi Arabian independent retailer Crate, which introduced Tamara on its website last August, has found that while those checking out with BNPL had become repeat users, most customers preferred to pay by card or cash on delivery.
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Please visit the PayPal Pay in 4 full Terms & Conditions Open a new window, and you can find a full list of FAQs Open a new window and sign up for free Open a new window on the PayPal website.Islamic customs prohibit charging interests on loans, which has deterred some Middle East consumers from using credit cards. Ensure you are able to follow your financing plan to avoid additional charges. The first instalment is due at the time you make your purchase, and the subsequent 3 payments are due every 2 weeks after your first instalment. It is availble on transactions between AU$30, and $2,000 and can impact a customer's credit score.Įnsure you are not experiencing financial hardship before using PayPal Pay in 4, which allows you to pay for your purchase in 4 interest - free instalments. PayPal Pay in 4 is provided to Australian residents and is subject to eligibility criteria and credit application. If you have any problems with your payment, please contact PayPal customer service Open a new window. PayPal Pay in 4 Open a new window, is an independent provider and Cathay Pacific has no influence on whether or not our customer's payments are accepted with PayPal. United Arab Emirates, Qatar and Saudi Arabia - English.China - Mainland, Hong Kong, Macao, Taiwan regions.
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