Mashreq and Cashew Expand Embedded Lending into Higher-Value BNPL Financing
Mashreq and UAE-based fintech Cashew are deepening their partnership to broaden embedded lending in the UAE, creating a regulated framework that supports higher-value buy now, pay later (BNPL) financing across digital platforms.
The collaboration combines Cashew’s technology infrastructure with Mashreq’s regulated lending capabilities, including credit decisioning and risk governance. According to the companies, the model is designed to make financing available at the point of need while maintaining transparent terms and faster approval processes.
Under the framework, customers can access loans of up to AED 150,000 with repayment periods of up to 48 months. Merchants are paid directly, which is intended to reduce friction in the checkout and financing process.
The partnership extends BNPL functionality beyond smaller consumer purchases into more essential and higher-value spending categories. These include automotive services, home improvement, healthcare, education, and lifestyle-related expenses.
Fernando Morillo, Group Head of Retail Banking at Mashreq, said the partnership positions the bank as a regulated lender capable of supporting higher-value consumer lending within third-party platforms.
“By working together, we are positioning ourselves as a regulated lender capable of supporting higher-value consumer lending within third-party platforms, while helping to build scalable frameworks that can support the evolving needs of consumers and merchants across the UAE,” Morillo said.
Ammar Afif, Founder and CEO of Cashew, said Mashreq’s backing strengthens the operational and governance foundations of the offering.
“Our partnership with Mashreq provides the institutional backing required to ensure robust risk governance, scalable funding, and the infrastructure necessary to support responsible growth,” Afif said.
The expansion comes as BNPL adoption continues to increase in the region, with lenders and fintech firms exploring ways to apply installment financing to larger-ticket purchases and essential services. By bringing a regulated banking partner into the model, the companies are aiming to support broader market adoption while keeping risk controls in place.
Industry Analysis
This partnership reflects a wider shift in the BNPL market toward more structured and regulated lending models. As consumer demand grows for flexible payment options on higher-value purchases, banks and fintech firms are increasingly working together to balance convenience with compliance and credit risk management.
For the UAE market, the move could help expand embedded finance use cases across sectors that traditionally rely on upfront payment or conventional installment plans. It also highlights how regulated lenders are positioning themselves within digital ecosystems, potentially setting the stage for more integrated consumer finance offerings in the region.
