Middle Eastern e-commerce company Jazp launches new payment option, joining the "buy now, pay later" battle

Last year, a large number of Middle Eastern consumers increased their online shopping efforts or started online shopping. Under the influence of the epidemic, economy and other factors, a new payment method has been rapidly popularized in the Middle East, that is, "buy now, pay later".

"Buy Now, Pay Later" (BNPL) is slightly different from installment services such as Huabei, Baitiao or credit cards. A major feature of "Buy Now, Pay Later" is that it does not charge interest or other fees.

Consumers can choose to pay in 3, 6 or 12 installments to reduce repayment pressure. For platforms and sellers, this payment method can also increase average order value, traffic conversion rate and repurchase rate.

This emerging payment method was quickly accepted by Middle Eastern consumers, and many e-commerce platforms in the Middle East have also begun to cooperate with "buy now, pay later" payment providers.

Jazp said that the "buy now, pay later" service is a response to the growing demand for e-commerce shopping and payment in the Middle East. When consumers place an order on Jazp, they can choose to pay in four installments. Jazp co-founder Nawas Basheer said that they will encourage consumers to use this payment method.

Spotii, which has reached a cooperation with Jazp this time, is one of the "buy now, pay later" payment providers that has come into people's attention during the epidemic. Spotii was launched in the UAE in May last year and received millions of dollars in financing just two months after its launch. Since its launch, its business in the UAE has grown 130 times.

Anuscha Iqbal, CEO of Spotii , said that the conversion rate of sellers using Spotii services has increased by 20%-40%, and the average order amount has increased by 50%-70%. Spotii is not currently a leading player in this field, but this is enough to show that Middle Eastern consumers have a very high demand for "buy now, pay later".

In fact, "buy now, pay later" is on the rise in many parts of the world. The "2020 Global Payments Report" released by Worldpay, a global payment service, shows that "buy now, pay later" will become the fastest growing e-commerce payment method in the world, and it is expected that by 2023, this payment will account for 9% of e-commerce payments in EMEA (Europe, Middle East and Africa).

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