Commercial Bank of Dubai (CBD) one of the leading banks in the UAE has approved a debt financing deal with Postpay, a leading omni-channel Buy Now, Pay Later (BPNL) provider in the Middle East. This inaugural debt financing arrangement is another example of how FinTech and traditional banks are partnering to leverage their collective experience and expertise to enhance the suite of financial products offered in the market.
The strategic partnership with CBD will provide support to Postpay on several fronts including Transaction Banking, Debt Funding and E-Commerce solutions allowing Postpay to focus on growth and support to its customers and merchant partners. The continued support from CBD will also enable Postpay’s planned expansion in the UAE, KSA, and other GCC countries. The financing facility helps solidify Postpay’s place as the region’s leading BNPL firm with the most diverse range of brands. Further, it supports their promise to create a seamless payment journey for consumers and to provide greater financial flexibility both online and in-store across the region.
“We are delighted to extend our partnership with CBD, a leading financial Institution that is committed to supporting innovation in financial technology. This facility provides the necessary fuel to our engine and empowers us to achieve our ambitious goals for the future”. said, Tariq Sheikh, Founder and CEO of Postpay.
For CBD, this is the latest step in their FinTech partnership journey; a journey that recently culminated in CBD establishing a permanent presence in the DIFC Innovation Hub, the largest FinTech ecosystem in the region.
Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, commented “The partnership with Postpay is in line with our commitment to back our customers’ ambitions. We believe in supporting the growing FinTech ecosystem in the UAE so as to enhance the overall payments sector with innovative digital solutions like BNPL.”
Last year Postpay closed a $10 Million Pre-series A funding round, led by Afterpay, Touch ventures (and others) which accelerated the growth of the company several fold positioning it as one of the leading Fintech players regionally.
About Postpay:
Postpay was founded in 2019 in Dubai, UAE, and has solidified its position as the leading buy now, pay later provider in the MENA region. Postpay, closed a USD 10 million equity round in June 2021 which brought onboard Global BNPL leader, Afterpay and AP Ventures on their Cap Table. Their vision is to provide the region with a best-in-class buy now, pay later solution that benefits both Shoppers and Merchants. They offer shoppers the option to pay in three monthly installments at their partner stores with absolutely no interest or fees. While they shift these costs to retailers as a premium payment gateway. Their solution increases conversion rates up to 30%, average order values by over 50%, and reduces return rates by over 25% – all with absolutely no added risk for the retailers as they get settled upfront on a weekly basis.
Postpay has experienced explosive growth in the last year and has several more exciting announcements on the horizon. In addition, they have integrated with thousands of merchants and partnered with several multinational and prominent regional retail giants including Alshaya Group, Al Tayer Group, Chalhoub Group, Apparel Group, Namshi amongst others. This strategic partnership with Afterpay is set to reinforce Postpay’s position as the market leader. At their current growth trajectory, one can expect to see Postpay at all leading brands in the region in a short space of time. In addition, they are playing an integral part in both the retail and payments industries in the region.
About CBD:
Commercial Bank of Dubai was established in 1969 and is registered as a Public Shareholding Company (PSC). The Bank is listed on the Dubai Financial Market and is mostly owned by UAE Nationals, including 20% by the Investment Corporation of Dubai (ICD). Over the years, Commercial Bank of Dubai has built itself into a progressive and modern Banking institution, endowed with a strong financial structure and strong management, as well as a loyal and ever-increasing customer and correspondent base. Today CBD is one of the leading banks in the United Arab Emirates and offers its customers a full range of retail and commercial banking products and services.
