Postpay receives Sharia approval for its BNPL products
By Leandra Monteiro
UAE-based payment solution provider Postpay, announced receiving Sharia certification from Shariyah Review Bureau for three of its ‘Buy Now Pay Later’ (BNPL) payment solutions to its customers.
Varun Gehani, Chief Financial Officer of Postpay said, “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, Namshi, amongst others”.
BNPL resonates with the post-pandemic mind, a generation that seeks convenience, flexibility and does not want to be bound by loans and credit card payments. Postpay, has partnered with MasterCard and the Commercial Bank of Dubai to offer consumers the region’s first virtual BNPL card solution.
Speaking on partnering with Shariyah Review Bureau, Varun Gehani added, “Shariyah Review Bureau is recognized as a professional Shari’a advisory firm in the region. Having worked with the traditional financial sector and diverse fintech companies, we wanted to leverage on their experience when it came to advising payment solution providers. We look forward to working with their team on new products and services whilst strengthening Sharia compliance and associated risks”.
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 FinTechs. In addition to reducing Sharia-associated overheads, this approach helps clients administer and centralise all of their Shari’a requirements.
Yasser S. Dahlawi Founder and CEO of Shariyah Review Bureau said, “Research by consulting companies show 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”.
IBSi Daily News Analysis
May 30, 2023
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