Dubai: The Commercial Bank of Dubai (CBD), one of the leading banks in the United Arab Emirates, has approved a debt financing agreement with Postpay, a leading Buy Now, Pay Later (BPNL) omnichannel provider in the Middle -East. This inaugural debt financing arrangement is another example of how FinTechs and traditional banks are teaming up to leverage their collective experience and expertise to improve the range of financial products offered in the market.
The strategic partnership with CBD will provide support to Postpay on multiple fronts, including transaction banking, debt financing and e-commerce solutions, allowing Postpay to focus on growing and supporting its customers and merchant partners. CBD’s continued support will also enable Postpay’s planned expansion into the United Arab Emirates, Saudi Arabia and other GCC countries. The funding facility helps cement Postpay’s place as the region’s leading BNPL company with the most diverse brand portfolio. Additionally, it supports their promise to create a seamless payment journey for consumers and 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 committed to supporting innovation in fintech. This facility provides the necessary fuel for our engine and allows us to achieve our ambitious goals for the future”. said Tariq Sheikh, Founder and CEO of Postpay.
For CBD, this is the final step in their FinTech partnership journey; a journey that recently culminated in CBD establishing a permanent presence in the DIFC Innovation Hub, the region’s largest FinTech ecosystem.
Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, said: “Partnering with Postpay is in line with our commitment to supporting our customers’ ambitions. We believe in supporting the growing FinTech ecosystem in the UAE to improve the entire payments industry 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 company’s growth multiple times, the positioning as one of the main regional Fintech players.
© Press release 2022