Mashreq and Cashew have expanded their collaboration in the UAE to develop an embedded lending framework aimed at making financing more accessible within digital platforms. The initiative combines Mashreq’s regulated banking, lending, credit decisioning, and risk governance capabilities with Cashew’s fintech infrastructure. The partners said the model is designed to support consumers seeking financing for essential and higher-value purchases while helping merchants receive payments more efficiently.
Embedded Lending Model
The framework enables financing to be offered directly at the point of need, allowing customers to access funding of up to AED 150,000. Repayment periods can extend up to 48 months, with near-instant approvals and clear repayment terms built into the digital journey. By embedding financing into merchant and platform ecosystems, the proposition aims to reduce friction compared with traditional loan applications.
Expanding Beyond BNPL
The collaboration comes as buy-now-pay-later services continue to gain traction among consumers and merchants across the region. Mashreq and Cashew are positioning large-ticket pay-later financing as a next step in the evolution of the model, extending digital instalment options to more significant expenses. Target categories include automotive services, home improvement, healthcare, education, and everyday lifestyle needs.
Bank-Fintech Collaboration
Fernando Morillo, Group Head of Retail Banking at Mashreq, said the future of finance will depend on how effectively financial services are integrated into everyday digital experiences. He noted that the collaboration with Cashew reflects Mashreq’s ambition to support embedded lending models that combine banking discipline with platform agility. The bank is seeking to position itself as a regulated lender capable of enabling higher-value consumer lending through third-party platforms.
Responsible Growth
Cashew Founder and CEO Ammar Afif said the partnership gives the fintech company institutional support for risk governance, scalable funding, and infrastructure. He described large-ticket pay-later financing as a natural extension of BNPL in a market where digital financial services are expanding quickly. Afif added that similar models have shown strong potential in international markets, including the United States and Europe, by offering consumers a simpler alternative to personal loans or credit card facilities.
Market Significance
For merchants, the framework could help improve access to customers who may prefer spreading the cost of larger purchases over time. For consumers, it offers a digital financing option designed to be faster and more integrated than conventional borrowing channels. The model also reflects a broader shift in financial services, where banks and fintechs increasingly work together to deliver regulated credit through non-bank digital environments.
The strengthened relationship between Mashreq and Cashew marks a more advanced phase of bank-fintech collaboration in the UAE. By combining regulated lending with embedded platform technology, the partners are aiming to create a scalable framework for responsible access to credit. The initiative is expected to contribute to the continued development of the UAE’s digital financial ecosystem while addressing changing consumer and merchant needs.