The ‘buy now pay later’ (BNPL) platforms of the Middle East region are turning into a favorite pitch for global investors, with Australian fintech company Zip Co. being the latest to set its foot in the market.
The fintech firm Zip Co. has recently invested in minority shares of the UAE-based BNPL firm Spotii. Being one of the leading BNPL players, Spotii currently has its presence in the UAE and Saudi Arabia, where it has brought on board more than 600 retailers.
The BNPL scheme provides the shoppers the opportunity to purchase goods or services from a retailer and then to pay off the bill in four installments within a set period and with no extra interest charges on the balance amount.
With the financial backing from Zip, Spotii will be able to conduct a smooth expansion of its geographic reach. Also, the Spotii-affiliated merchants in the region will be benefited from access opportunities in the US, the UK, Australia and New Zealand. Zip is a leading BNPL service provider and publicly listed fintech firm.
By adding the ‘shop now pay later’ feature Spotii’s merchants has been able to boost their customer base with a 40 percent increase in new buyers and a 70 percent rise in the average order value.
Another prominent BNPL service provider in the UAE and Saudi Arabia, tabby, has also received sizable funding support from strategic investors, who see possibilities for growth in this scheme as consumers are still aware of their spending.
“Buy Now Pay Later is booming globally and the region is no different. The pandemic has accelerated the need to provide new solutions to merchants and consumers alike in a period of rapid digital adoption. Spotii has been working to create a consortium of strategic partnerships with best-in-class organizations in the payments and technology sector, first with Microsoft, then with Mastercard and now with Zip.”
The tech-enabled payments platform Spotii was co-founded last year by Ziyaad Ahmed in UAE. Recently, the buy now pay later platform has expanded its market to Saud Arabia also.