UAE start-up offers 'buy now, pay later' scheme to in-store shoppers

Deferred payment tool no longer just available to online customers

  
Image for illustrative purpose only. Artists and designers work on arrangements for clothing items to be sold online at an eBay Fashion photo shoot in San Francisco, California.

Image for illustrative purpose only. Artists and designers work on arrangements for clothing items to be sold online at an eBay Fashion photo shoot in San Francisco, California.

REUTERS/Robert Galbraith

UAE-based start-up Spotii is enabling shoppers to avail themselves of their interest-free ‘buy now, pay later’ scheme both online and in store.

The FinTech firm announced on Sunday that it is extending its deferred payment tool to customers who shop at physical stores, rather than offer it exclusively to Internet users.

In April this year, the new firm unveiled its online payment scheme that allows consumer to purchase goods and worry about the full payment later. Buyers are only required to make a 25 percent down payment at checkout and settle the balance in three instalments.

The scheme is expected to stir up some consumer interest, especially since the coronavirus pandemic has put financial squeeze on most people’s pockets.

“[The payment mechanism] will help consumers make purchases during the tough post-pandemic period, wherever they shop, whether at an online retailer or in physical store,” the company said in a statement.

Online shopping in the UAE has spiked in recent months, as people have been advised to stay at home to avoid contracting the virus. Retailers at shopping malls are seeing a decline in footfall as a result.

According to Anuscha Iqbal, CEO of Spotii, shopping at physical retail locations remain a big part of people’s lives, particularly in the UAE.

“We are acutely aware that while online purchases have doubled in the region during the pandemic, real-world shopping is a huge part of UAE culture, and we want to ensure we help people out everywhere. We can now help merchants deliver state-of-the art payment solutions to customers both on and off line,” Iqbal said.

How it works

Shoppers who avail themselves of the deferred payment scheme can pay only 25 percent of the purchase cost upon checkout and take the goods home.

The remainder of the bill can be settled every other week or every month, without extra costs, fees or charges.

The deferred scheme, however, is available only at stores that are on Spotii.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

#Startup #UAE #Spotii #Technology

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020