With over 46.7% of the UAE population falling into credit card debts and 12.8% actively looking for loans, the UAE’s leading fintech App, Sav, has launched a groundbreaking “Save Now, Buy Later” (SNBL) feature with the aim to bridge the gap in aspirational goals and sustainable affordability for the UAE residents and families.
Sav’s SNBL feature has been launched at an essential time as the UAE residents face rising inflation and lifestyle challenges. By highlighting the importance of disciplined savings, Sav aims to alleviate financial stress and guide individuals towards a more sustainable lifestyle. SNBL promotes a savings-focused approach to big-ticket purchases rather than relying on credit and accumulating debt.
Flip side to Buy Now, Pay Later – Sustainable Affordability
For the last few decades, for large ticket purchases and casual consumption, using credit cards and BNPL has taken precedence.
According to market reports, “Buy now, pay later” (BNPL) payments in the UAE are expected to reach US$2,531.1 million in 2023. While BNPL has facilitated affordability, the trend encourages impulsive spending and excessive borrowing, leading to financial instability and stress for many.
Credit-based options reward users with points, cashback and discounts for casual borrowing. However, savings and planned purchases have been barely incentivized.
Understanding the consumptive behavior of young households, and the missing benefits in planned consumption, Sav is addressing the impending need for innovative debt-free personal finance tools. The SNBL feature presents a flip side to BNPL, incentivizing users to practice good money behavior and responsibly plan their purchases.
Giving back control to Brands
SNBL creates a win-win situation for both customers and merchants.
Customers who prioritize savings over debt can earn cash rewards when they hit their savings milestones. Brands stand to benefit significantly by gaining access to wider, in-market audiences. The SNBL option puts brands in charge of their customer’s purchase journey early on, thereby boosting brand affinity and building loyalty. Moreover, Sav helps brands overcome challenges like rising customer acquisition costs and online shopping cart abandonment.
Aligning with the UAE’s vision
Sav aligns with the Ministry of Finance’s Savings awareness initiative, which emphasizes the importance of saving for a secure future. It promotes financial awareness and responsible spending habits among young couples and families in the UAE. Drawing insights from Sav’s growing database of over 45,000 users, the top three categories for savings are Travel, Home & Furniture, and Education, accounting for nearly 60%, in addition to emerging savings areas including Automobiles, Electronics, and Jewelry. The platform strives to reach a milestone value of AED 40 million in savings, underlining its loyalty to transforming users’ economic well-being.
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