4 Islamic FinTechs pioneering in BNPL services in the GCC

By Gloria Methri

Buy Now, Pay Later or BNPL is a payment model that allows consumers to purchase goods or services and defer payment over a set period, often without incurring interest.

BNPL services have experienced significant growth in the Gulf Cooperation Council (GCC) region, reshaping consumer finance by offering interest-free installment payment options. This model aligns well with Sharia principles, which prohibit interest-based transactions, making BNPL particularly appealing in predominantly Muslim countries.

This rapid adoption is driven by a young, tech-savvy population and the expansion of eCommerce, positioning BNPL as a convenient and culturally compatible alternative to traditional credit options.

As the region’s eCommerce and retail sectors continue to grow, these platforms are playing a crucial role in promoting financial inclusion while adhering to Islamic ethics. Let’s explore four Islamic FinTechs revolutionising BNPL services in the GCC.

• deema

Deema is a Kuwaiti Sharia-certified Buy Now, Pay Later (BNPL) platform that provides consumers with flexible, interest-free installment payment options without interest or hidden fees. Its BNPL service is integrated into merchants’ checkout processes, making it easy for customers to shop and manage payments later. deema aims to make financial services more accessible and user-friendly while also aligning with Islamic Sharia principles.

• Madfu

Madfu is a Saudi Arabian FinTech company authorised by the Saudi Central Bank (SAMA) to provide BNPL services across sectors such as tourism, entertainment, and eCommerce. Launched in 2023, Madfu allows users of its app to split purchases and pay in three interest-free instalments in designated stores as well as earn cashback. It raised $1.3m in a pre-seed funding round in November 2022.

• Paylater

PayLater is a Qatari FinTech company specialising in Sharia-compliant BNPL solutions. In collaboration with Qatar Islamic Bank (QIB), PayLater offers consumers the ability to make purchases and pay in four interest-free installments over three months, promoting financial inclusion and supporting the growth of Qatar’s digital economy.

• PostPay

Dubai-based PostPay provides a secure, interest-free BNPL solution that allows students and families to pay tuition fees in manageable installments. In collaboration with educational institutions, PostPay covers the full invoice upfront, giving families flexibility in repayment while ensuring uninterrupted educational access. Founded in 2019, the company has partnered with thousands of retailers to provide customers with the flexibility and convenience of paying for their purchases in three interest-free payments.