UAE-based payment solution provider Postpay has received Sharia certification from Shariyah Review Bureau for three of its ‘Buy Now Pay Later’ (BNPL) payment solutions to its customers.
With the increase in online transactions amidst the pandemic, BNPL providers stood to benefit. They are seen as a twofer by both parties, the vendors and the customers who benefit from availing of the interest-free alternative payment solution.
Earlier, Postpay has also partnered with MasterCard and the Commercial Bank of Dubai (CBD) to offer consumers the region’s first virtual BNPL card solution.
Shariyah Review Bureau provides end-to-end Sharia advisory solutions that are centrally deployed, and offer Sharia supervision, audit, and quick turnaround in product certification. This has become an attractive option for supporting the needs of fintech. In addition to reducing Sharia-associated overheads, this approach helps clients administer and centralize all of their Shari’a requirements.
“Our model is straightforward. We offer a very simple product that allows the customer to split their online payments into three equal parts. The first installment is processed immediately, and the customer receives their product as usual. The remaining two installments are due every month thereafter. Most importantly the customer pays nothing more than the amount they were paying for their purchases. As a budgeting tool, offering best in class BNPL solutions, we have partnered up with leading retailers like Alshaya, Majid Al Futtaim, Chalhoub, Al Tayar, and Namshi, amongst others.”
Mr. Yasser S. Dahlawi Founder and CEO of Shariyah Review Bureau said that “Research by consulting companies shows that BNPL transactions are on the rise, and we have been assisting notable BNPL names in the region on Shari’a compliance. We keenly look towards working with Postpay as they offer consumers non-interest-based solutions, thereby educating them on how to manage finance by using their solutions in setting up financial goals.”