Consumers Can Save for Purchases Via Save Now, Buy Later Fintech
Compound, a new fintech startup, has officially launched in the Middle East, introducing a unique «save now, buy later» model aimed at helping consumers save for purchases with their favorite brands while earning rewards, as highlighted in The Fintech Times.
Compound partners with various brands to offer a proactive savings approach. For example, customers can save for an upcoming vacation with their preferred airline and earn rewards from the brand at each savings milestone. This initiative comes as savings culture is gaining traction in the UAE, with nearly 90% of people setting financial goals for 2024, according to a National Bonds survey published by Gulf News. Similarly, Saudi Arabia has seen its highest savings rate in over a decade, as per 2023 data from the Saudi central bank.
Brands are increasingly facing high customer acquisition costs and intense competition. Compound provides these brands an opportunity to engage with prospective buyers early and foster deeper relationships throughout the customer’s savings journey.
Shashank Narayanan, the founder of Compound and a founding team member of Sarwa, the leading investment platform in the UAE, emphasized the dual benefits of this model: “It’s about time consumers are given an opportunity to earn better rewards by saving up for a purchase, and we’re able to offer this by helping brands build deeper relationships with prospective buyers,” said Narayanan. “Our goal is to enable financial wellness at every purchase – for consumers and brands alike.”
Compound was incubated with HP Spring Studios, a venture studio in partnership with Salica Investments and Bahrain’s Al Waha Fund of Funds. Zainab Khamis, head of HP Spring Studios Bahrain, announced Compound as the first spinoff, highlighting its potential to drive positive change and promote healthy financial habits in the region. She also underscored Bahrain’s emerging role as a fintech innovation hub.