Four new ways to ‘buy now, pay later’ in the UAE – The National

Four new ways to ‘buy now, pay later’ in the UAE – The National

But if the credit card bill comes in and it cannot be paid off, the late fees and interest quickly rack up, leading to a situation of spiralling debt.. Merchants are still protected through credit risk checks, late fees and blocks on customers who have defaulted.. Recent FinTech start-ups in the Emirates offering monthly instalment plans or delayed payments for purchases as small as a new pair of shoes - include postpay and Tabby .. Customers should also be confident they can make payments in the event of job loss or a pay cut.. Splitting payments in half is popular with cash-strapped millennials and Generation Z, says Mr Sheikh.. Customers only need a debit or credit card and an Emirates ID, and are given an instant approval decision.. "There are 'disincentive fees' for not paying on time, but they never amount to more than 25 per cent of the purchase price - and that's really in the worst-case scenario," Mr Sheikh says.. "We pay [retailers] before we collect all the money, so it's an incredible amount of value for them," Mr Sheikh says. ". If a customer doesn't pay, there's no implication on the retailer.". "It's interest-free