Cashew Financial Services LLC

Introduction to Cashew Financial Services LLC

In the dynamic and rapidly evolving financial landscape of the United Arab Emirates, digital lending has emerged as a powerful force, reshaping how individuals and businesses access credit. Among the innovators in this space is Cashew Financial Services LLC, a Dubai-based fintech company established in 2020. Cashew has quickly positioned itself as a key player, offering transparent and technology-driven financial products, primarily focusing on buy-now-pay-later (BNPL) services and planned-purchase loans.

Backed by a significant debt and equity facility from Mashreqbank, Cashew aims to serve a broad spectrum of the market, from Gen Z consumers seeking flexible payment options for lifestyle purchases to small and medium-sized enterprises (SMEs) requiring structured financing. This article provides an in-depth analysis of Cashew Financial Services LLC, examining its offerings, operational procedures, regulatory standing, and market impact within the UAE.

Company Overview and Background in the United Arab Emirates

Cashew Financial Services LLC, a privately held entity, was founded in 2020 by Ammar Afif, Hashim Ali, and Moeed Qamar. Its headquarters are strategically located in Maze Tower, Sheikh Zayed Road, Dubai, reflecting its deep roots within the UAE's commercial hub. The company is incorporated in the Dubai International Financial Centre (DIFC) as a limited liability company, a framework that supports its operations in the region.

The core of Cashew's business model lies in its digital-first lending platform. The company specializes in two primary product categories:

• Pay-in-3: An interest-free buy-now-pay-later solution designed for purchases typically under AED 5,000, allowing consumers to split their payments into three convenient monthly installments.
• Planned Purchase Financing: Installment loans for higher-value purchases, generally starting from AED 5,000, with flexible repayment tenors extending up to twelve months.

Cashew generates its revenue through merchant transaction fees for its BNPL services and nominal service charges applied to its longer-term financing plans. The target demographic is broad, encompassing modern consumers, from younger generations to mid-career professionals, seeking flexible financing for significant consumer and lifestyle expenditures. Additionally, Cashew extends its services to SMEs, facilitating business-to-business installment solutions.

Key leadership includes Ammar Afif as Founder and CEO, bringing extensive experience from Silicon Valley; Hashim Ali as Chief Product Officer; and Moeed Qamar as Chief Operating Officer. A significant development in the company's trajectory was Mashreqbank's acquisition of a minority stake in May 2022, injecting USD 10 million in debt and equity, which underscores confidence in Cashew's model and growth potential.

Loan Products, Terms, and the Application Process

Cashew Financial Services LLC offers distinct lending products tailored to varied financial needs:

Pay-in-3 (Buy Now, Pay Later)

• Eligibility: Open to any UAE resident possessing a valid identification document and demonstrating basic financial standing.
• Amounts: Consumers can finance purchases up to AED 5,000.
• Interest/APR: This product is entirely interest-free for the consumer. Cashew operates on a merchant-paid fee model.
• Term: Repayment is structured over three months, with equal monthly installments.
• Fees: A flat late-payment fee of AED 50 applies if an installment is missed. There are no origination fees.
• Collateral: No collateral is required for this service.

Planned Purchase Financing

• Eligibility: Available to UAE residents who link a debit or credit card, or a bank account. Eligibility is further determined by their AECB (Al Etihad Credit Bureau) credit score and transaction history.
• Amounts: This product covers higher-value purchases, ranging from AED 5,000 to an unverified upper limit of AED 50,000.
• Interest/APR: Estimated to be within the range of 6% to 18% per annum. Prospective borrowers should confirm the precise rate at the time of application, as it can vary based on credit assessment.
• Term: Repayment periods are more extended, spanning from three to twelve months.
• Fees: There are no origination fees. A monthly service fee of AED 25 is applied. Late payments incur a fee of 2% of the overdue installment amount.
• Collateral: No collateral is required.

The application process for Cashew's services is designed for digital efficiency and convenience:

• Channels: Applications can be submitted through the dedicated Cashew mobile application (available on iOS and Android), directly via their website portal (cashewpayments.com), or through in-store point-of-sale integrations with merchant partners.
• KYC & Onboarding: Cashew employs a fully digital identity verification process. Applicants typically scan their Emirates ID or passport, complete a selfie-matching procedure, and confirm their address with a utility bill.
• Credit Scoring & Underwriting: The company leverages proprietary artificial intelligence and machine learning models to analyze alternative data points, including transaction frequency, social payment behavior, and employment details. This is integrated with an instant AECB credit score check for a comprehensive view of the applicant’s creditworthiness. High-value loans may undergo an additional manual review.
• Disbursement & Collection: For merchant-partner purchases, funds are instantly disbursed to the merchant at checkout. For other uses, a refundable deposit may be processed via bank transfer. Repayments are automated monthly via auto-debit from the saved card or bank account, with SMS and in-app reminders. A 2% late fee is applied, and accounts over 60 days past due may be escalated to third-party collections.

Mobile App Features, User Experience, and Market Standing

Cashew's commitment to a digital-first approach is best exemplified by its mobile application, which serves as the primary interface for most users. Available on both iOS and Android platforms, the app boasts strong average ratings of 4.7 on the App Store and 4.5 on Google Play, indicating a generally positive user experience.

Key features of the mobile application include:

• Streamlined loan application submission.
• Comprehensive repayment management tools.
• A "Snooze" feature for extending due dates, offering flexibility.
• A credit-score dashboard, providing users with insights into their financial standing.

User reviews frequently praise the app's ease of use and the transparency of Cashew's terms. However, some common issues highlighted by users include occasional delays in the Know Your Customer (KYC) verification process and, at times, slower response times from customer service. Cashew offers 24/7 in-app chat support and email, with an average first-response time reported at two hours.

From a regulatory perspective, Cashew Financial Services LLC is incorporated in the DIFC. While authorized for non-regulated fintech activities within the DIFC framework, its operations pertaining to consumer credit in the UAE likely fall under the oversight of the UAE Central Bank, though specific licensing details from the Central Bank remain unverified publicly. The company commits to transparent fee disclosures and offers consumers the right to prepay without penalty, aligning with robust consumer protection principles and DIFC Data Protection Law.

In the competitive UAE BNPL and digital lending market, Cashew operates alongside notable players such as Tabby, Tamara, Postpay, and Mamo. Cashew differentiates itself through its offering of longer-term financing options, particularly for higher-value purchases, and its strategic integration with sectors like healthcare, education, and travel. The BNPL market in the UAE is experiencing rapid growth, projected to expand by approximately 75% annually through 2025. Cashew has demonstrated impressive growth, with a reported 900% year-over-year user growth from 2021 to 2022 and transaction volumes rising significantly.

Strategic partnerships, such as the one with Mashreqbank, are crucial for Cashew's merchant network expansion. The company also has ambitious plans for regional expansion, with discussions underway for rollouts in Saudi Arabia, Oman, and Egypt.

Practical Advice for Potential Borrowers

For individuals and SMEs considering Cashew Financial Services LLC for their financing needs, several practical considerations can help ensure a positive experience:

• Assess Your Needs Clearly: Before applying, determine if a short-term, interest-free Pay-in-3 plan suits your purchase, or if the longer tenor and potentially interest-bearing Planned Purchase Financing is more appropriate for a larger expense.
• Understand All Terms and Fees: While Pay-in-3 is interest-free, both products carry late payment fees. The Planned Purchase Financing also includes a monthly service fee and an interest rate. Always read the full terms and conditions carefully before committing.
• Review Your Budget: Ensure that the repayment schedule aligns with your financial capacity. Automated payments are convenient, but it is essential to have sufficient funds in your linked account to avoid late fees and potential negative impacts on your credit score.
• Maintain a Strong Credit Profile: For Planned Purchase Financing, your AECB credit score plays a significant role in eligibility and potentially the interest rate offered. Responsible credit behavior, such as paying bills on time, can enhance your chances of approval and favorable terms.
• Utilize the Mobile App: The Cashew app is a powerful tool for managing your loans. Take advantage of features like repayment tracking, due date reminders, and the "Snooze" option if you foresee a minor delay, though understanding its conditions is key.
• Data Privacy: As Cashew operates under the DIFC Data Protection Law, your personal and financial information is handled with a commitment to privacy. Nonetheless, always be vigilant about sharing personal data only through official channels.
• Customer Service: Should you encounter any issues or have questions, reach out to Cashew's customer support through the in-app chat or email. While response times can vary, clear communication is crucial for resolving concerns.

Cashew Financial Services LLC presents a compelling option for digital lending in the UAE, offering accessible and flexible financial solutions. By understanding its products, processes, and diligently managing repayments, borrowers can leverage Cashew's services to meet their financial needs effectively.