Mashreq Bank, one of the leading financial institutions in the Middle East, has committed up to $10 million in Cashew, the innovative fintech leader providing buy now pay later (BNPL) services to consumers in the UAE and KSA.
As part of the strategic investment, Mashreq will integrate Cashew Payment as an option on the acquiring network of NEOPAY, the payments subsidiary of Mashreq, as well as provide support for the launch of Cashew in Egypt.
The deal with Mashreq is unique in the region’s fintech space because it goes beyond just a processing relationship between two financial institutions. Cashew and Mashreq will also collaborate and offer new products to the market including longer tenure and higher ticket size BNPL options for consumers and introducing the first of its kind in the region Point of Sales lending options later this year. Mashreq would offer Cashew services and products to its merchants and business banking customers.
Segments such as education, travel and healthcare remain untapped and as a result of this partnership, they will quickly expand to these new segments and give consumers numerous payment options that will change the BNPL landscape at a rapid pace.
“Our partnership with Cashew will lead the way for the future of financial services in the region. We will leverage the full network of Mashreq merchants and consumers to provide our ecosystem with the most ubiquitous and flexible BNPL options in the market,” said Mashreq Bank Group CEO Ahmed Abdelaal.
“Mashreq is one of the most respected banking brands in the region, so they will bring our customers many benefits as we continue to grow our service offerings. This partnership will give consumers the largest merchant network to shop at, larger ticket size and the ability to pay over longer terms,” said Cashew Co-Founder and CEO Ammar Afif. “We can only accomplish these goals for our customers by partnering with respected financial institutions like Mashreq that understand and want to be a part of the growing BNPL segment.”
“BNPL as a payment option is gaining prominence globally, with UAE BNPL volumes slated to grow by 71% in 2022 versus last year. Through our collaboration with Cashew, customers can enjoy greater flexibility when meeting their payments. We eagerly await the roll-out of further services as we continue to empower our customers with more choice and convenience in the UAE and in the future, across Egypt,” said Mashreq Bank’s Senior Executive Vice President and Group Head of Retail Banking Group Fernando Morillo.
“This is yet another prime example of the partnerships we can forge with innovative fintech operators, who share our mission to deliver a safe and seamless payment experience for our customers,” added Morillo.