BNPL or Buy Now Pay Later offers short-term financing that allows users to make payments and purchases in the future with little or no interest on the amount. BNPL is also called a “point of sale instalment loan” as it is a kind of instant loan given to consumers.
A major collaboration took place between Amazon Egypt, and valU, a Buy Now, Pay Later (BNPL) fintech platform to introduce affordable payment options for its Egypt-based business. Amazon is an e-commerce portal with a worldwide presence following Egypt and is driven by invention, due to customer service, operation excellence, and long-term thinking.
Peter George, Managing Director, Amazon Payment Services, stated, “As we continue to grow our businesses in different parts of the world, I am very excited to see Amazon Egypt contributing to the country’s digital economy through innovation to provide our customers with the best possible shopping experience, anchored in convenient payment methods.”
This collaboration is going to help Egypt-based consumers of Amazon as they will be able to choose one of a variety of BNPL instalment plans at check out. Amazon users can choose a payment option based on their credit limit, given by valU. Shoppers will be allowed to spread payments for the periods of 6 to 60 months without any downpayments and can purchase their items with a minimum spend of EGP 500 for a variety of products.
Walid Hassouna, CEO, valU, commented, “By taking advantage of deferred payment methods, customers have more freedom to spend without the fear of feeling squeezed financially.”
Current trends unveil that major companies are expressing a lot of interest in BNPL, although there are also signs of strain due to greater regulatory scrutiny and volatile tech industry. When it comes to BNPL lending, the UK government has implemented stricter regulations to safeguard consumers.